The latest Africa Wealth Report by Henley & Partners reveals that Kenya is among the African countries experiencing a significant increase in the number of dollar millionaires. Over the past decade, the number of Kenyans worth over $1 million has risen by 30%, showcasing substantial growth in wealth.
However, despite this surge in wealth, the report also highlights the stark reality of poverty, with five out of 13 Kenyans living in abject poverty, underscoring the widening gap between the rich and the poor.
The report indicates that Kenya ranks fourth in terms of the wealthiest people on the continent, with 16 individuals worth over $100 million and no reported dollar billionaires. This contrasts with other African countries like Egypt and Nigeria, which have a higher number of dollar millionaires and even boast a few dollar billionaires.
While Kenya’s wealth growth is noteworthy, the overall growth rate of wealthy individuals across Africa has declined by eight percent over the past decade, attributed to currency depreciation and underperforming stock markets. The South African rand, for example, depreciated significantly against the US dollar during this period.
Migration also plays a significant role in Africa’s wealth dynamics, with approximately 18,700 high-net-worth individuals leaving the continent over the past decade. Many wealthy individuals have relocated to countries like the UK, the USA, Australia, and the UAE, contributing to Africa’s loss of wealth.
Despite these challenges, the report suggests that Africa’s millionaire population is set to rise by 65% over the next decade, with South Africa, Egypt, Nigeria, Kenya, and Morocco leading the continent’s wealth markets. However, the erosion of wealth due to currency depreciation and migration remains a significant concern for Africa’s economic landscape.
