Revealed: Why Kenya’s Wealthy Are Now Planning for A Second Nationality

 Revealed: Why Kenya’s Wealthy Are Now Planning for A Second Nationality

Kenya’s wealthy are planning new nationalities as part of their investment activities.

According to the 2022 attitudes survey issued today with Knight Frank’s annual Wealth Report, the millionaires who are slightly over a quarter of Kenya’s 3,362-dollar millionaires are considering the move as a way to access greater investment, education and healthcare access.

The report further shows that this level of second-nationality investment amounts to almost twice the global average for wealthy individuals, with an average of 15 per cent of dollar millionaires seeking additional or changed nationalities worldwide, compared to 28 per cent in Kenya.

Kenyan HNWIs are far more likely to be residential and commercial landlords than average.

Knight Frank Wealth Report 2022

However, the proportion of Kenyans seeking foreign passports is not the highest for Africa, with 31 per cent of High-Net-worth Individuals (HNWIs) in South Africa seeking a second passport, and 44 per cent of HNWIs in Nigeria.

“Amongst Kenyans seeking new passports, the proportion interested in reducing their tax bills, enhancing their safety, or getting a better quality of life is much the same as for the wealthy globally. The big difference for Kenya’s dollar millionaires is the proportion of new nationality applications for investment purposes, and in pursuit of better education and better healthcare for themselves and for their families.” Said Andrew Shirley, editor of The Wealth Report at Knight Frank.

Of Kenyans seeking new passports, around 59 per cent are doing so as an investment, against a global average of 17 per cent, while 38 per cent cite education as a driver, compared with 18 per cent worldwide. Meanwhile, 34 per cent are seeking better healthcare, compared with 13 per cent worldwide.

Knight Frank Wealth Report 2022

“Overall, the shift to nationality applications driven by the principle aim of investment and from an established platform of preference for property ties with the interest by Kenya’s wealthy in owning properties overseas. Their long-standing preference for investing in property at home is now extending to real estate investments in the US, UK, Australia and UAE,” said Andrew.

Of Kenyans seeking new passports, around 59 per cent are doing so as an investment, against a global average of 17 per cent, while 38 per cent cite education as a driver, compared with 18 per cent worldwide. Meanwhile, 34 per cent are seeking better healthcare, compared with 13 per cent worldwide.

This balance of motivations contrasts with the rest of Africa, where 63 per cent of the HNWIs applying for second nationalities are seeking increased safety and a better life.

The drivers for HNWI’s second nationality applications:

 AfricaGlobal averageKenya
Safety and better quality of living63%36%31%
Tax25%30%31%
Ease of travel/mobility21%27%22%
Relocation34%24%38%
Education33%18%38%
Investment21%17%59%
Quality of healthcare22%13%34%
Drivers for HNWIs second Nationality Applications

“This rising trend of ‘nationality planning’ from our own wealthy is highly focussed as a route to best-in-class investments, education and healthcare, with property investments making up a significant component of that investment.” Said Ben Woodhams, Knight Frank Kenya MD.

Kenyan HNWIs are far more likely to be residential and commercial landlords than average. This difference is most notable in commercial property investments, accounting for around 49 per cent of the wealth held by Kenya’s most wealthy individuals, but only around 27 per cent of the assets of the wealthy worldwide.

However, Kenyan millionaires are unusual in holding such a high proportion of their assets in their own country, owning an average of just 19 per cent of their property portfolio overseas, compared with an average across all HNWIs of 32 per cent.

Read the full report here: http://www.knightfrank.com/wealthreport

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