5 Reasons Kenya's Rich Are Spending On Cars, Whiskey, Watches- Knight Frank Report

One would ask themselves why these super-rich individuals, including a section of politicians and government officials, opt to spend lavishly on luxury items that are out of reach to their ordinary counterparts

5 Reasons Kenya's Rich Are Spending On Cars, Whiskey, Watches- Knight Frank Report
A collage of a luxury car, whiskey, watch and a piece of art inside a house. /VIRAL TEA KE

The one constant factor among Kenya's richest individuals anytime they amass wealth and money from their assets and investments is where they choose to spend their money.

Knight Frank's 2024 Kenyan edition of the Wealth Report titled A Perspective on Kenya Wealth Investment Trends released on Tuesday, April 30 revealed that High Net-Worth Individuals (HNWI) developed a liking for art to grow their assets.

Other investment areas were cars (57.14 per cent), watches (57.14 per cent), whiskey (42.86 per cent), jewellery(42.86 per cent) and furniture (35.71 per cent).

Additionally, tycoons were opting to splash their money on bags (28.57 per cent), wine (28.57 per cent), diamonds (14.29 per cent) and coins (7.14 per cent).

Image of a designer handbag. /FILE

However, one would ask themselves why these super-rich individuals, including a section of politicians and government officials, opt to spend lavishly on luxury items that are out of reach to their ordinary counterparts. Viral Tea reveals below:

Joy of Ownership

According to the Wealth Report, knowledge is essential in selecting assets, particularly in categories like whisky, classic cars, and art.

The pleasure derived from owning unique and culturally rich assets is evident, with a recognition that the joy of ownership complements the financial aspects of these investments.

Investment

The emphasis on investment as one of the reasons for collecting investments of passion is underscored by the performance analysis of various luxury assets. 

Notably, the discussion highlights fluctuations in the value of luxury assets such as whisky, classic cars, handbags, fine wine, watches, and jewellery. 

The financial aspect of these investments is a central theme, focusing on value appreciation, market corrections, and notable sales contributing to the overarching consideration of investments.

Intellectual Interest

Intellectual interest is the third-ranking factor in clients’ motivations for collecting investments of passion.

"There is a need for knowledge and expertise in making informed decisions, especially in areas like whisky, where understanding the scarcity and undervaluation of certain bottles is crucial. The intellectual engagement with the assets, their history, and market dynamics contributes to the overall appeal of investments of passion," the report reads in part.

Status among Peers

Status among peers is also recognized as a contributing factor, albeit less prominent than the Joy of Ownership and financial aspects.

According to the Classic car guru Dietrich Hatlapa, the retreat in the value of classic cars might be influenced by factors like changes in portfolio allocations and profit-taking.

The discussion hints at the impact of market trends on the perceived status associated with certain investments.

To Belong to a Community

To belong to a community is identified as the smallest factor influencing clients’ motivations for collecting investments of passion.

The sense of belonging to a community is likely associated with shared interests among collectors.

For instance, the hip-hop culture influencing the jewellery market exemplifies how cultural trends and communities can shape preferences within investments of passion.

A man showcasing a piece of jewellery worn by hip hop musicians. /PHOTO