3 Reasons Why Wealthy Kenyans Are Opting to Invest In South Africa

High net worth Kenyan investors are preferring South Africa over any other country, the 2025 Wealth Report, released on Tuesday, May 13, by real estate firm Knight Frank Kenya, has revealed.

In the report, which collected responses from private bankers, wealth advisors, intermediaries, and family offices who, between them, manage wealth for the Ultra High Net Worth Individual (UHNWI) clients, indicated that Kenyans prefer South Africa due to its well-developed commercial property sector.

One of the three key factors driving the preference is South Africa's mature market, which is more structured and diverse, offering a broader range of commercial investment opportunities.

The investors also choose the southern African nation due to its robust infrastructure, contributing to property stability and long-term value, as well as access to  advanced investment instruments and financial services enabling portfolio diversification.

Kenya as a Preferred Destination

Kenya was also highlighted as a preferred top investment destination for HNWIs, even though they are setting their sights on global markets at an increasing rate.

“Despite increasing interest in international markets, Kenya remains a significant focus for commercial property investment,” the report reads in part. 78 per cent say Kenya remains a significant focus for commercial property investment.

Factors contributing to the HNWIs’ preference for Kenya include rapid urban expansion in key cities such as Nairobi, Mombasa, and Kisumu. This, coupled with emerging urban centres, continues to drive demand for commercial real estate.

Furthermore, ongoing improvements in road networks, transport systems, and utilities enhance property accessibility and value, making Kenya an attractive investment hub.

Additionally, despite existing economic challenges, Kenya’s projected growth still presents opportunities for businesses to expand, increasing the demand for commercial spaces.

In terms of local knowledge and management, “investors often prefer familiar markets where they understand regulatory frameworks and have established networks,” adds the report.

“Additionally, owning property within their home country allows for easier management while maintaining proximity to family and business interests.”

Some Kenyans, however, look outside the African continent and, increasingly, towards other markets such as Canada, France, and Italy to diversify their commercial real estate portfolios.

Their motivation is defined by three factors, among them portfolio diversification. “Spreading investments across different geographic locations reduces risk and enhances overall portfolio resilience,” adds the report.

The investors also considered market stability, with developed economies such as Canada and parts of Europe offering a higher degree of economic and political stability, making them attractive long-term investment destinations.

Exposure to international markets and monitoring of global economic trends are revealed to be allowing investors to capitalise on emerging economic opportunities and favourable real estate cycles.

Knight Frank, in a subsequent press release, revealed that Kenya's wealthy are adjusting their investment strategies in response to rising global economic uncertainty, shifting away from residential and foreign assets in favour of more liquid, higher-yielding opportunities within the country.