The dollar millionaires in Kenya are on the rise. According to a report by Knight Frank, dollar millionaires in Kenya have risen from 3,323 in 2020 to 3,362 in 2021, representing a one percent increase.
Twenty-seven percent of the dollar millionaires, or 803 of them, are self-made and aged under 40, indicating new opportunities for young people in a country where the lucky few have previously relied on inherited wealth to join the club of the super-rich. In 2020, Kenya recorded a 22 percent decrease of dollar millionaires from 4,235 in 2019 to 3,323.
“Taking into account those aged under 40 who have created their own wealth rather than inherited it…the level of entrepreneurial wealth is higher in Kenya than the global average of 22 percent, especially when you consider the wealth is being created in sectors such as in technology, metaverse and blockchain,” Knight Frank Wealth Report editor Andrew Shirley said.
In the latest survey, the number of global dollar millionaires increased by 7.8 percent to 69,750,472 in 2021 from 64,703,169 in 2020.
However, the number of ultra-rich Kenyans with a net worth higher than $30 million (Sh. 3.4 billion) fell by two to 88 last year, reflecting the difficulty of adding wealth in this segment compared to the lower threshold of $1 million.
“Globally, pandemic-related restrictions and lifestyle shifts have led to amassed savings and an increase in levels of wealth that has not been seen for years,” Shirley said. The number of dollar millionaires in Kenya is projected to rise to 4,274 by 2026.
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According to the survey, most of the millionaires globally were in real estate, with 19 percent of Kenya’s millionaires preferring to invest in property overseas.
A growing number of young millionaires and entrepreneurs are making money in Kenya’s technology sector, especially fintechs, with their key focus ranging from digital payments, loans, and insurance to share trading and cryptocurrency. They also offer digital agribusiness, health, and logistics solutions, helping establish Kenya as East Africa’s hi-tech hub.