Why rich Kenyans are quietly moving away from traditional real estate

High-net-worth investors in Kenya are rebalancing their real estate portfolios away from traditional residential homes and directing capital into alternative asset classes.

Data from the Knight Frank Kenya Wealth and Investment Trends Report 2026 shows a clear strategic shift toward assets that deliver regular income, liquidity, and long-term economic resilience.

According to Knight Frank Kenya, wealthy buyers are reducing the share of capital held in primary and secondary homes. Instead, investors are 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. Farmland led overall preferences at 29 percent, while 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. Meanwhile, logistics properties continue to gain traction due to regional trade activity and e-commerce growth.

Knight Frank Kenya Chief Executive Officer (CEO) Mark Dunford stated that this trend highlights a more deliberate approach to capital allocation. He noted that modern investors are 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 rather than moving capital overseas.

Beyond new sectors, capital is also flowing into existing commercial space. About 38 percent of survey respondents indicated their clients are targeting underperforming commercial assets for refurbishment while maintaining their original use.

Upgrading existing structures allows property owners to reduce operational costs, boost energy efficiency, and retain tenants in a competitive real estate landscape.

Sustainability has become a main driver for these building upgrades. The report found that 75 percent of respondents consider renewable energy integration a primary factor when assessing commercial real estate investments.

Green building certifications are similarly gaining prominence among buyers aiming to protect asset value over time.

Knight Frank Africa Research Analyst Boniface Abudho noted that investors are not abandoning property, but rather broadening their asset base. He added that improving the environmental performance of older commercial buildings extends their operational lifecycle while meeting growing demand from corporate occupiers for higher-quality, sustainable spaces.