As the number of middle-class Africans continued to grow, more and more people continue to display the desire to spend on designer brands. For the case of Kenya, despite the tough economic times, Kenyans have maintained class and elegance.
International fashion brands have continuously been opening shops in Nairobi as the growing Kenyan middle class continue to show an appetite for luxury brands.
A new report has ranked Kenya the second largest market for luxury goods and services in Africa. The AfrAsia Bank Wealth Report 2018 has placed Kenya behind South Africa who happens to be the largest in terms of the luxury market.
The AfrAsia Bank Wealth Report 2018 reveals that the African luxury sector generated approximately 6 billion US dollars in revenue in 2017 with Kenya generating half billion US dollars. South Africa spent USD 2.2 in the luxury market.
“This figure includes luxury cars, luxury clothing & accessories, luxury watches, private jets, yachts and luxury hotels & lodges,” a part of the report reads.
South Africa, Kenya, Nigeria, Morocco and Egypt are the top five luxury markets in the continent and the report notes that luxury market revenues in these countries were largely boosted by the existence of many luxury hotels in the countries.
“We estimate that the African luxury sector generated approximately USD 6 Bn in revenue in 2017,” reads the report “This figure includes: luxury cars, luxury clothing & accessories, luxury watches, private jets, yachts and luxury hotels & lodges,”
To expound on this further, as of 2017, luxury car brands like Porsche, Aston Martin, Bentley, Ferrari, Rolls Royce, Lamborghini, and Mclaren had their dealerships in several African nations Kenya. This shows the extent the few wealthy Kenyans can go with regards to spending on luxurious things.
While the few wealthy Kenyans splash millions of cash to live luxuriously, a majority of Kenyans continue to struggle to afford basic needs. Central Bank of Kenya Governor Patrick Njoroge disclosed that only 1 percent of Kenyans have over USD 10K in their bank accounts.
The CBK Governor revealed this early this year while appearing before the Parliamentary Committee on Finance.