In 2023 tycoons continued to diversify their investments in order to remain on top of the game and wealth bracket.
Although Forbes noted that Africa’s wealthiest people shed a combined $3.1 billion in the past 12 months, following a global decline for markets in 2022, Kenyan tycoons widened their options.
New ventures which picked up for them include building students' accommodation, data centres and investing in stocks.
Students Accommodation
Wealthy investors shifted from building residential apartments to investing in purpose-built student accommodation (PBSA).
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According to Knight Frank, an estate agency, residential and commercial property, purpose-built student accommodation registered a return of 8 percent.
Knight Frank noted that their investment helped fill the gap in student accommodations in the country.
"It is expected that PBSA will remain more profitable in the foreseeable future as universities (public and private) struggle to accommodate the ever-increasing number of students," the report read in part.
"This may provide the developers of PBSA with increased demand in a market that is dominated by Acorn Holdings Limited (AHL) – the promoters behind Qwetu brand of hostels," Knight Frank further observed.
Data Centers
The demand for data centers peaked in 2023 compelling wealth investors to pump their money into the sector.
The demand was driven by the need of big companies to secure their information. For instance, in January this year, US Ambassador to Kenya Meg Whitman announced that the country was set to receive Ksh3.7 billion to finance data centres in Nairobi County.
"I am delighted to announce Ksh3.7 billion (USD30 million) funding in support of the expansion of the Africa Data Centers here in Nairobi.
"Excited to tour the Africa Data Center and participate in the groundbreaking for their expansion – more than doubling their current capacity and securing Kenya’s digital infrastructure," she stated.
According to reports published by HassConsult and Knight Frank, the demand which saw tycoons gain more millions was due to the position of the country as a technology hub.
Knight Frank's The 2023 Commercial Real Estate Outlook in Africa indicated that landlords and developers are expanding existing data centres and building high-quality warehouses.
"A closer look at the Nairobi market indicates a rising demand for cloud storage requirements as businesses rapidly expand their online platforms, driving a surge in data centre requirements," Knight Frank stated.
This trend helped moneyed individuals to expand their portfolios.
Stocks
Around May this year, the stock market was only being kept afloat by Kenyan investors. Kenyan tycoons increased their shares after foreign investors fled from the country’s stock market.
According to a report released by the African Development Bank (AfDB), investors fled the country to search for safe havens.
The weakening Kenyan shilling caused anxiety compeling them to flee and explore other favourable options.
This weighed down the stock market. However, data from the Central Bank of Kenya indicated that Kenyan investors kept the market going.
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