Why rich Kenyans are quietly moving away from traditional real estate
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High-net-worth investors in Kenya are rebalancing property portfolios away from traditional homes toward data centres, logistics, farmland and the private rented sector, Knight Frank data shows.
High-net-worth investors in Kenya are rebalancing their real estate portfolios away from traditional residential homes and directing capital into alternative asset classes, according to data from the Knight Frank Kenya Wealth and Investment Trends Report 2026.
Wealthy buyers are reducing the share of capital held in primary and secondary homes, instead seeking opportunities in emerging sectors such as data centres, logistics, farmland and the residential private rented sector. Data centres and private rented housing each attracted interest from 24 percent of surveyed investors, while farmland led overall preferences at 29 percent and industrial and logistics property garnered 18 percent.
The growing appeal of data centres is connected to the expansion of the digital economy, cloud computing infrastructure and artificial intelligence deployments in Kenya, while logistics properties continue to gain traction due to regional trade activity and e-commerce growth. Knight Frank Kenya CEO Mark Dunford noted that the trend highlights a more deliberate approach to capital allocation, with modern investors looking beyond conventional property types to secure assets that combine steady returns with structural growth.
Despite the broader diversification, most affluent buyers continue to hold the bulk of their assets within domestic borders. About 38 percent of survey respondents indicated their clients are targeting underperforming commercial assets for refurbishment while maintaining their original use, allowing owners to reduce operational costs, boost energy efficiency and retain tenants.
Sustainability has become a main driver for building upgrades, with 75 percent of respondents considering renewable energy integration a primary factor when assessing commercial real estate investments. Knight Frank Africa Research Analyst Boniface Abudho said investors are not abandoning property but broadening their asset base, and improving the environmental performance of older commercial buildings extends their operational lifecycle while meeting demand from corporate occupiers for higher-quality, sustainable spaces.