Hoshea
JF-Expert Member
- Jan 24, 2012
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Dramatic increase
Kenya witnessed a dramatic increase in the population of the super-rich even as millions of her citizens wallow in abject poverty – pointing to a widening rift of inequality in the country.
900 individuals managed to cross the million-dollar line in a year in which nearly half of the Nairobi Security Exchange (NSE)-listed companies reported sharp drops in profits leading to massive job losses.
Besides, more than 2.2 million small enterprises closed shop in the last five years, underlining the tough business environment in the country.
Kenya’s economy expanded by 6.2 per cent in the second quarter of 2016 compared to 5.9 per cent during the same period the previous year.
The growth was, however, driven by heavy government spending on mega infrastructure projects that has covered the tough realities facing the private sector.
University of Nairobi Economics lecturer Michael Chege said earlier the average income of the richest 10 per cent of Kenyans was 15 times bigger than that of the bottom 10 per cent, but that has now widened to more than 100 times.
“Conspicuous consumption marked by heavy spending on high end luxury goods (top of the range cars and whiskeys) has taken root to become the new normal in Kenya,” he said adding that it happens in all rapidly-growing economies where the newly-rich want to flaunt their wealth.
Prof Chege said Kenya’s newly-rich have mainly built their wealth portfolio in real estate, ICT, finance and international trade.
The Knight Frank report corroborates estimates by economic analysts and luxury brand makers that Kenya is rapidly becoming the new the Mecca for luxury brands targeting the super-rich.
“There is a rapidly rising Middle Class that is internationalised taking holidays abroad and with aspirations that are at par with cities like New York, London and Tokyo,” Nairobi-based analyst Aly-Khan Satchu told the Business Daily in an earlier interview.
IN RED, habari mbaya sana, ndani ya habari njema.
Kenya witnessed a dramatic increase in the population of the super-rich even as millions of her citizens wallow in abject poverty – pointing to a widening rift of inequality in the country.
900 individuals managed to cross the million-dollar line in a year in which nearly half of the Nairobi Security Exchange (NSE)-listed companies reported sharp drops in profits leading to massive job losses.
Besides, more than 2.2 million small enterprises closed shop in the last five years, underlining the tough business environment in the country.
Kenya’s economy expanded by 6.2 per cent in the second quarter of 2016 compared to 5.9 per cent during the same period the previous year.
The growth was, however, driven by heavy government spending on mega infrastructure projects that has covered the tough realities facing the private sector.
University of Nairobi Economics lecturer Michael Chege said earlier the average income of the richest 10 per cent of Kenyans was 15 times bigger than that of the bottom 10 per cent, but that has now widened to more than 100 times.
“Conspicuous consumption marked by heavy spending on high end luxury goods (top of the range cars and whiskeys) has taken root to become the new normal in Kenya,” he said adding that it happens in all rapidly-growing economies where the newly-rich want to flaunt their wealth.
Prof Chege said Kenya’s newly-rich have mainly built their wealth portfolio in real estate, ICT, finance and international trade.
The Knight Frank report corroborates estimates by economic analysts and luxury brand makers that Kenya is rapidly becoming the new the Mecca for luxury brands targeting the super-rich.
“There is a rapidly rising Middle Class that is internationalised taking holidays abroad and with aspirations that are at par with cities like New York, London and Tokyo,” Nairobi-based analyst Aly-Khan Satchu told the Business Daily in an earlier interview.
IN RED, habari mbaya sana, ndani ya habari njema.
