Nairobi is in the top 10 of Africa’s richest cities.
A report by New World Wealth in conjunction with AfrAsia Bank, Kenya’s Capital ranks Kenya’s capital as the richest in East Africa. Nairobi took the top position in the region thanks to its large number of High Net Worth Individuals (HNWI).
The city’s wealth is largely in private hands with the report estimating that approximately Sh5.4 trillion is held by private investors.
In the region, Tanzania’s Dar es Salaam is home to Sh2.5 trillion privately held wealth followed by Kampala with Sh1.6 trillion. Mombasa has Sh800 billion worth of investments, notably in hospitality chains and affluent luxury beach houses.
Nairobi’s financial growth is driven by financial services, retail, tourism, fast-moving consumer goods, telecoms, real estate, and construction.
The city is said to attract high Net Worth Individual ((HNWIs) for business and investments while Mombasa is mentioned as home to hospitality and luxury investments along its expansive beaches as well as highly preserved buildings recognised globally as World Heritage Sites.
The report hails Kenyan open-ended policy that allows capital inflows and property ownership for African billionaires with easy visa regulations.
As a result, the injection of funds by HNWIs into local investments has propelled demand for lettable space making Nairobi the most expensive city in East Africa where space goes for an average of Sh190,000 per metre square. Mombasa’s lettable space is charged at Sh170,000.
In Africa, Nairobi is ranked sixth wealthiest city after Durban, Cape Town, Cairo, Lagos, and Johannesburg.
The report further indicates that Africa’s elite class has a shopping preference for high-end designer clothes, exotic vehicles(especially Porsche for Kenyans) and luxury assets such as helicopters and private jets.
This lifestyle pathway is said to be more prominent in Nairobi than in all the other East African Cities.