Kenya’s high-net-worth individuals (HNWIs) are recalibrating their property investment strategies, from lifestyle-driven purchases and offshore holdings to income-generating, domestic assets, in response to global economic uncertainty and local fiscal pressures.
Strategic Shift: From Lifestyle to Liquidity
- The latest Knight Frank Wealth Report 2025 reveals a marked decline in foreign homeownership among Kenya’s wealthy. Only about 10% now hold property abroad, down from 14% in early 2023.
- HNWIs increasingly prioritise investments that offer liquidity and stable returns, such as real estate investment trusts (REITs), treasury bonds, and money market funds, over luxury or lifestyle properties.
- The share of wealth allocated to primary and secondary homes has dropped sharply from 50–60% in 2024 to just 22% in 2025, reflecting a strategic move towards more liquid, income-producing assets.
Domestic Focus and Confidence
“Kenya remains the primary choice for HNWIs purchasing homes, with 66% selecting it as their first option. The United States follows at 29.4%, while the United Kingdom ranks third at 21%, tying with the US as a key secondary option,” reads part of the report.
“These findings align with last year’s trends, where Kenya was also the top priority for home purchases at 33%, followed by the UK at 25%.”
- The majority of wealthy Kenyans now own two or three homes, typically a primary residence in Nairobi or another city, a leisure home in a rural or coastal area, and additional properties for rental income or capital appreciation.
- This domestic focus is underpinned by confidence in Kenya’s economic, social, and political landscape, despite recent challenges such as slow GDP growth, fiscal tightening, and high construction costs.
Changing Motivations and Market Dynamics
- Investment, legacy planning, wealth appreciation, diversification, and income generation are now the primary motivations for property purchases among HNWIs, rather than personal lifestyle or status.
- The commercial property sector has seen subdued interest due to lower yields and stagnant rental growth, compounded by an oversupply of office space and the shift to hybrid work patterns.
- 1–10% of clients are expected to purchase homes in 2025, as rising land and construction costs, low mortgage penetration, and economic uncertainty prompt a cautious, ‘wait-and-see’ approach.
Emerging Trends: ESG and Younger Investors
There is a growing emphasis on Environmental, Social, and Governance (ESG) factors, with green certifications and social impact now crucial for attracting institutional financing and international tenants.
Younger HNWIs are increasingly interested in off-plan and luxury developments in prime locations, with lifestyle, security, and legacy shaping their purchase decisions.
Outlook
Despite subdued growth in the number and wealth of HNWIs-less than 10% growth reported between 2024 and 2025-there is cautious optimism.
Nearly half of wealth managers expect only marginal increases in wealth this year, but none foresee significant declines, reflecting underlying confidence in the resilience of Kenya’s private sector and real estate market.
The trend towards multiple homes, diversified portfolios, and a focus on resilient, income-generating assets signals a new era of prudent, domestically anchored wealth management among Kenya’s affluent class.