Down to Earth | 19 May 2025Kenyan tycoons slow down on luxury, pivot toward agriculture and environmental conservation: Report
by Tony Malesi
Wealthiest individuals in Kenya (both locals and foreigners) are shifting from luxury spending and status-driven investments, choosing instead to put their money into agriculture-related investments, in-demand clean energy and environmental conservation, according to a new report.
The Kenyan edition of the newly released 2025 Wealth Report by global property consultancy Knight Frank revealed a notable reorientation of investment trends among the High Net-Worth Individuals (HNWIs) in the east African country. Fueled by global economic uncertainty and a slowing domestic economy, the Kenyan movers and shakers, known for their preference for luxury assets—like multiple million dollar cars, homes, hospitality or real estate—are increasingly opting to invest in revenue-generating sectors like food production and clean energy among others. In the process, experts say the trend is boosting food security and as well as the fight against climate change.
“Investors are increasingly diversifying their portfolios, exploring new asset classes that offer better liquidity and competitive returns, including in high-growth sectors, with food production as a key priority. Investment in emerging business opportunities, particularly in agriculture, renewable energy and technology,” reads the report in part.
Food production as top investment priority
When asked for sectors to watch in 2025 and ahead, feedback from respondents, who comprised wealth managers and analysts among others, highlighted a diverse range of opportunities, reflecting both emerging trends and traditional strengths in Kenya’s economy.
“A significant 83% of respondents indicated that besides other investments their clients are now investing in farmland primarily for food production. This overwhelming preference highlights the central role of agriculture in Kenya’s economy and underscores concerns about food security. As the country’s population grows, so does the demand for food, making agricultural investment a practical and strategic choice. The impact of climate change and fluctuating weather patterns has further driven investors towards farmland, ensuring reliable food production amidst economic uncertainties,” further reads the report.
During the launch of the report in Nairobi, Boniface Abudho, a research analyst at Knight Frank, said: “Investors are now trying to diversify their investment portfolio, moving away from just residential property investments to alternative asset classes. Agriculture remains the backbone of Kenya’s economy. Investors now recognise the potential for agribusiness, commercial farming and export-driven agricultural ventures, particularly in high-value crops.”
According to the report, over 90 per cent of wealth managers said their clients allocated less than 10 per cent of their wealth to luxury assets in 2024. In particular, development land and farmland have become top investment targets for 2025, with food production now a key focus for many investors, according to wealth managers interviewed by the report.
Non-governmental organisations and civil society groups have been vital for grassroots mobilisation and community education and almost lonely voices in combating climate change and its effects like food insecurity. Academic and research institutions have also been at the forefront of developing climate-resilient crops and innovative solutions in response to food insecurity. International organisations and development partners, too, have been offering funding and technical support. One relatively big constituency that has seemingly been missing in the effective climate adaptation strategies and food security has been the private sector and HNWIs/individual tycoons.
Catalyst for sustainable food security
Can this new wave of wealth-driven investment by HNWIs become a catalyst for sustainable agricultural transformation? Well, what else would it take to keep the momentum going considering these HNIs largely consist of prominent thought leaders, captains of industry and other key influential figures in Kenya? Their investment decisions often shape local/rural economies, like when they invest in agriculture, agribusiness, or infrastructure, they create employment, improve market access and introduce modern technologies.
The mainstream view from experts is that this strategic pivot could be a boost for Kenya’s food security. As farmland and agri-tech attract more capital, popular opinion is that more mechanisms are needed to ensure these investments translate into long-term gains for the agriculture sector and national food resilience.
Analyst Abudho added that also worth noting was that in 2024, many HNWIs made their properties more energy-efficient and adopted more sustainable lifestyles, including flying less and owning fewer vehicles, highlighting a broader shift toward environmental responsibility. “It is also believed that many of such tycoons influence can drive policy change, especially when they advocate for sustainable practices or inclusive development. In rural areas, where state resources may be limited, the presence of such wealthy/committed investors or philanthropist can make a transformative difference, accelerating development and improving quality of life,” said Abudho.
Regarding environmental and sustainable land use, the report reveals that a “notable 56% of the HNWIs prioritize tree planting, reflecting a growing emphasis on environmental conservation”.
The report said: “Agroforestry, the integration of trees with crops, enhances soil health, prevents erosion, and provides alternative income streams through timber and fruit production. Additionally, trees contribute to carbon sequestration, aligning with Kenya’s and global climate change mitigation strategies. As the visible effects of climate change intensify, farmland investments increasingly incorporate sustainable practices such as organic farming, water conservation and biodiversity preservation, ensuring long term land productivity while supporting ecological balance”.
It’s widely believed that when superrich individuals in a country like Kenya shift their focus from luxury spending to investing in agriculture and agribusiness, it can significantly boost food security. Their capital and influence can modernise farming practices through mechanisation, improved irrigation and access to quality seeds and fertilisers. This leads to increased crop yields and more reliable food production. Investment in agribusiness enhances the entire value chain, from storage and processing to distribution, reducing post-harvest losses, which are a major challenge in Kenya.
Keenness on conservation and sustainability
The report indicates that the shifting investment trends among HNWIs also influence lifestyles and quality of life considerations, positively impacting the environment.
“Half of the respondents cited lifestyle opportunities and environmental benefits as key reasons for investing in farmland. Beyond financial gains, investors are seeking farmland for recreational purposes, weekend getaways, or future rural living. Urban dwellers, in particular, view farmland as a retreat from city life, offering space for self-sufficiency, agri-tourism and sustainable living. The rise of agri-tourism further underscores the appeal of farmland ownership, as it provides additional income while promoting eco-friendly tourism,” reads the report.
It was also noted that more tycoons in Kenya are also becoming keen on the Global Sustainability agenda, with trends of their latest investments as proof.
“Kenya’s vulnerability to climate change, manifested in extreme weather conditions such as droughts and floods, has heightened the urgency for sustainable building practices. As a result, a significant portion of investors prioritize renewable energy sources (67%) and energy efficiency ratings (61%) when assessing potential property acquisitions,” reads the report.
Overall, such investments, besides many other positive impacts, create employment, especially in rural areas, boosting local economies and empowering communities to afford and access food. Also, when influential businesspeople support agriculture, they can attract further investment and influence policy reforms that favour food production and sustainability.
By prioritising some of the aforementioned long-term gains over short-term luxury, these tycoons can contribute to more resilient food systems. Such trends not only help reduce hunger and malnutrition but also make the country less dependent on food imports, enhancing national food sovereignty and security.
