Knight Frank Survey Unmasks Peculiar Way Kenya’s Wealthy Are Investing In Real Estate

Over 90 per cent of Kenya’s High-Net-Worth Individuals (HNWIs) have embraced green thinking in the properties they invest in, according to Knight Frank’s attitudes survey results in the Kenya edition of Knight Frank’s annual Wealth Report 2024, launched in Nairobi today.

Knight Frank’s 2024 survey of the spending habits and priorities of the country’s wealthiest individuals reported a surge in the use of renewable energy, with 60 per cent of HNWIs now seeking solar panel installations in the properties they invest in, up from 35 per cent a year ago.

The Kenya attitudes survey, which is based on responses from private bankers and wealth advisors also found that almost half of HNWIs, at over 46 per cent, now review the impact on nature and biodiversity of their assets.

“These results confirm Kenya’s HNWIs have surpassed the global average of including green priorities in their investment portfolios. They also align with Kenya’s leadership position in renewable energy and its focus on the importance of building certifications. This all serves to support the country’s target of reducing its carbon footprint by 32 per cent by 2030,” said Mark Dunford, CEO Knight Frank Kenya.

Carbon cutting is becoming an increasingly urgent global priority, as the temperature rises accelerate and erratic rainy seasons, droughts and cyclones become more common.

In efforts to mitigate this deterioration, 40 per cent of Kenyan HNWI investors are now seeking green certification and energy ratings for their properties, up from 30 per cent a year earlier.

This has brought a surge in demand in the country for BREEAM, LEED, DGNB, Green Mark, and NABERS green and sustainable building classifications, delivering energy savings, per building, as great as 53 per cent, as well as 42 per cent water savings and 35 per cent carbon savings.

This rising attention to efficient resource use follows global findings released by Knight Frank in 2023 that found 70 per cent of Kenyan HNWIs were already assessing building materials for their carbon footprint, compared with 30 per cent of HNWIs worldwide.

“We are seeing a clear trend of environmental leadership across Kenyan HNWIs. Moreover, while this is centred on their carbon footprint, it also extends to their attention to their environmental impact, with increased commitments to green roofs, open spaces, and community facilities, such as cycle tracks and electric vehicle charging points” said Boniface Abudho, Research Analyst, Knight Frank Africa

Over 26 per cent of the HNWIs said they now require amenities such as well-being spaces and cycle tracks in the properties they invest in, while 40 per cent consider the impact on the wider community, with a preference for properties with community facilities.

Across the Kenyan HNWIs surveyed in 2024, fewer than 7 per cent were not yet considering the environment in their investments.