It takes Sh2.2m to join richest 1pc of Kenyans

[SIZE=6]It takes Sh2.2m to join richest 1pc of Kenyans[/SIZE]
It now takes a net worth of $20,000 (Sh2.2 million) to break into the population of Kenya’s top one percent by wealth, according to the latest Knight Frank Wealth Report.
The threshold means that the country’s most affluent class is packed with prosperous professionals and entrepreneurs.
With a Sh2.2 million threshold out of reach of most Kenyans, it also demonstrates the country’s relatively higher poverty levels and reflects Kenya’s wealth inequality.
That amount of money is inadequate to afford a family a middle-class lifestyle in the major cities like Nairobi which is traditionally associated with home ownership and consumption of private education and transport, among other services.
Sh2.2 million can only secure a small plot of land in Nairobi’s outskirts, with the cheapest apartments in the capital city starting from Sh3 million.
The study describes wealth as the net assets of a person that includes property, cash, equities, business interests less any liabilities like loans.
The concentration of wealth in the hands of a few people has partly been attributed to the previous centralised system of government, which guided sharing of resources since Independence.
The devolved system of government, which took off in 2013, raised hopes of addressing the economic imbalance, as analysts say there is a need to offer incentives to attract private investors to counties and spread wealth.
Knight Frank says that one needs $180,000 (Sh19.7 million) to join the top one percent in South Africa, nine times Kenya’s admission price.
That money is enough to buy a two or three-bedroom apartment or standalone house in parts of Johannesburg, according to property listings.
Nigeria is second on the continent with a $70,000 (Sh7.6 million) or 3.5 times higher than Kenya’s level. That money can buy a two-bedroom apartment in parts of Lagos, Nigeria’s largest city.
In contrast, the top one percent of the developed world are able to indulge in all manner of luxury associated with the elite.
Monaco, a favourite playground for the super-rich, has the highest admission price to the one percent of $7.9 million (Sh867 million) which is enough to buy multiple luxury apartments and cars in the city-state
A similar level of consumption in Kenya’s capital is likely to cost more than $455,000 (Sh50 million) or nearly 23 times the stated price for admission to the country’s top one percent club.
“Developing economies Indonesia and Kenya have thresholds that are below one percent of the level of Monaco at $60,000 (Sh6.5 million) and $20,000 (Sh2.2 million) respectively,” the report says.
Switzerland, famous for its role as a warehouse of the global elite’s wealth, is second with a threshold of $5.1 million (Sh559 million). The United States is third with an entry level of $4.4 million (Sh483 million).
Official data shows that entrepreneurs and high-income earners have the highest chance of joining Kenya’s exclusive wealth club, with the majority of citizens either unemployed or trapped in low-paying jobs.
Nearly three quarters of the country’s formal sector workers earn below Sh50,000, according to data from the Kenya National Bureau of Statistics (KNBS).
This paints a picture of major inequality that has gotten worse after the Covid-19 pandemic led to the loss of more than one million jobs and pay cuts for most of those who managed to remain in the labour force.
There are also significant inequalities even within the top one percent which includes everyone with a net worth of Sh2.2 million and multi-billionaires with annual incomes running into hundreds of millions of shillings.
The report says that the category comprises 90 Kenyans with a net-worth of at least $30 million (Sh3.3 billion), including their primary residence.
These are almost exclusively entrepreneurs owning multiple companies and assets in the local market and abroad.
There are also 3,323 Kenyans here with net assets of at least $1 million (Sh109 million) including their primary home. These are mostly owners of medium-sized firms and highly-paid professionals like executives.

The real definition of a shithole

Depends on the outskirts.
Kutoka KBC all the way to Tala and acrosss to Juja farm all ze way to Kilimambogo(Donyo Sabuk) hii 2.2m itakupea almost 1 acre.
Past Kitengela, Isinya and all the way to Rongai pia utapata acre na hii pesa.
Maybe anaongea juu ya Kiambu Cownty, where obviously land is scarce.

Can someone interpret this for us commoners. Does it mean most Kenyans are poor mdomo dio mingi. And are our local village mirrioners in this group ama wao I kujichocha tu?

Just 2m i see

top 1% ni majamaa 500k

Mdomo ndio mingi.
umbaya ya kublock watu

Middle class karibu yote wanaishi maisha ya deni. They have invested in assets but knee deep in debt. Technically they are broke n statistically don’t count. Sisi kama ranchers and part time rustlers hapana tambua middle class.

My 2 cents. Most Kenyans wealth is hidden and is not recorded anywhere.

Common refrain until someone gets ill. Saa hiyo ndio unajua ni domo tu. In the recent months I’ve seen two relatives use their deeds when illness came calling. Both had rental properties in the outskirts of nairobi

Wakenya hawanaga pesa ni mdomo tu…2% only earn 35k and above, 3% have 100k in their bank accounts…

The study describes wealth as the net assets of a person that includes property, cash, equities, business interests less any liabilities like loans.

Could be true but if they consider networth as cars, vehicles, real estate, liquid cash, and other things a lot of people pass that threshold. The problem may be that the average Kenyan does not know how to invest and has debts, but the world over the average people don’t know anything about investing because t is not taught in schools. Kenyan authorities have also not documented a large informal economy

Enda form 3 uombe kitabu cha biz uangalie balance sheet vile hukaa. Hizo vitu umetaja ziko captured already kwa hiyo definition.

Hii ni uwongo, there are so many people with a net worth of over 2 million.

So these slumlords with a couple of mabati shanties are firmly in the 1%. Hehe real sithole Republic

This report doesn’t make sense. Or I’m not seeing sense in it. A net worth of 2.2m is a really low threshold. And why do they say that amount is inadequate to afford a middle class lifestyle… Kwani are you funding your lifestyle based on your net worth or income? Are you selling assets for consumption?

How can someone get to know of such deals?

If you look at the auctioned assets in the classified section since 2018, you will realize Kenyans may be living large but are massively in debt.

Sikuelewi…meant use deeds as security