Porsche maker is one of the global luxury car manufacturers to open shop in Nairobi. FILE PHOTO | NMG
The luxury market in Kenya generated
Sh50 billion ($500 million) in revenues last year representing a 20 per
cent growth compared to Sh40 billion realised during the same period in
2015.
The 2017 Afrasia Bank New World Wealth survey
released a fortnight ago places Kenya as the ...
second largest luxury market by revenue in the continent after South Africa which accounted for Sh230 billion ($2.3 billion).
second largest luxury market by revenue in the continent after South Africa which accounted for Sh230 billion ($2.3 billion).
Kenya
was also the only market that attained growth in the sector as revenues
from other key markets of South Africa, Nigeria, Angola, Egypt and
Morocco plunged.
South Africa dropped by 10 per cent,
Nigeria fell by a third to Sh40 billion while Angola and Egypt plunged
by same rate to Sh20 billion each. Morocco revenues remained unchanged
at Sh20 billion.
“South Africa, Nigeria, Egypt and
Angola all experienced drops in luxury sales in 2016, whilst luxury
sales in Kenya were up…Kenya was above Nigeria mainly due to the large
luxury tourism industry there,” said the report.
The
growth in luxury expenditure in Kenya is attributed to expanding club of
the super rich, with a growing taste for high-end products.
The
Wealth Report published by Knight Frank a month ago says that the
number of Kenya’s super rich grew by eight per cent, the fastest in the
region, to 9,400 dollar millionaires. These are individuals classified
as having assets worth more than $1 million (Sh103 million), excluding
primary residences.
The super rich numbers have over
the recent years attracted world famous luxury car brands to Kenya
including the Bentley, Porsche, Jaguar, Range Rover Autobiography,
Mercedes-Maybach and S-Class with prices of up to Sh40 million.
The
taste for luxury products has also led to the development of world
class hotels and lodges like Finch Hattons in Tsavo West National Park
and Mahali Mzuri owned by Virgin Atlantic billionaire Richard Branson.
It also led to the opening of local franchise shops of luxury brands
like Swiss-made Rado Watches, which recently opened the first store in
Africa at the Westgate Mall in Nairobi.
“We estimate
that the African luxury sector generated approximately $5.9 billion in
revenue in 2016. The main components of this were luxury cars, yachts,
private jets, personal luxury goods (which include watches, clothing,
accessories and jewelry) and luxury hotels and lodges,” the report said.
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