Kenya needs fewer billionaires and more millionaires

The 2019 census report revealed that Kenya’s population is 47.5 million people. In the same year, Knight Frank documented in their Wealth Report that 2,900 Kenyans were each worth more than Sh1 billion, and 42 were estimated to be worth more than Sh3 billion each.

The average yearly salary of a Kenyan in 2019 was Sh778,248. This means that it would take 1,284 years to make Sh1 billion on that salary. With a life expectancy of 66 years in Kenya, it would take you 19 lifetimes to make Sh1 billion. That is assuming you actually make it to 66 and work every single year of your life.

But not to worry, Knight Frank distinguishes between High-Net-Worth-Individuals and Ultra-High-Net-Worth-Individuals. So to achieve true elite status as an Ultra-High-Net-Worth-Individual it would only take you 58 lifetimes to make Sh3 billion.

By the time your descendants realise it is impossible to make such money, they will wonder whose smart idea it was to try doing so in the first place.

You must admit that in a country where we like our corruption widespread, those facts are shocking. But in reality, we are just as staggered when we read about inexhaustible wealth as we are when we read about abject poverty. That is, of course, assuming that you, dear reader, are not actually a billionaire.

Wealth is relative

Although wealth is a relative concept, we can agree that we should just scrunch up and toss away our idea of the people around us who we think are “rich”. Even Knight Frank understands that there are rich people, and there are - as Africans would exaggerate - rich rich people! Representing just 0.006 per cent of the Kenyan population, it is unlikely that most of us actually interact with the ‘rich rich’ of our nation on a regular basis.

The rich people most of us know drive around in some of the latest versions of cars, from 2019 Land Cruiser Prados, to 2020 Porsche Cayennes, Range Rover Evoques, Mercedes Benz G-Wagons and so forth. They try to keep up with model upgrades of their vehicles, but not as much as they keep up with the latest iPhones releases.

The rich people most of us know live in the affluent suburbs of Nairobi. They prefer these areas not only because of privacy, but also because they want to ensure that when they take one of their newer cars out for a drive into the city, they will cover a distance long enough to be noticed by people.

The rich people most of us know are not too close to their neighbours, but they still know one another. They sometimes run into each other at their local golf or sports clubs and occasionally enjoy brunch together. While the men talk business, their stay-at-home-wives bond over how grateful they are for their several nannies, who keep their homes pristine; who take their dogs on walks; who do the grocery shopping; and who have most importantly played an integral role in caring for their children.  Their children go to British system schools and end up in private universities in Kenya or abroad.

The rich also cry

The rich people most of us know are the kind who frequently flaunt their wealth on social media. They cure their followers' boredom by taking them on virtual house tours. It should not be so alarming that some of the standard features of homes in the neighbourhoods where they live include: walk-in wardrobes, elevators, gazebos, dozens of wall paintings, swimming pools, gyms, and sculptures of wildlife. Oh, and a dog.

The rich people most of us know are your friendly Twitter-neighborhood lawyers, politicians, ‘tenderpreneurs’ and socialites. Who are the nouveau riche if they do not share their unsolicited rags-to-riches stories? They provide Kenyans with the evidence they need to believe that if they work hard, they too can become rich.

The rich people most of us know frequent bars and restaurants. It is particularly easy to spot them at a new eatery. They'll probably come in as a group, all dressed up, with their phones in hand. As their table is gradually filled with food, they do not dig in until everyone has received their meal.

Any cultured person would assume that that is because they have proper table manners, and that is a fair assumption. But no; custom now dictates that without a mandatory Instagram photo of all the meals together, one must not eat. If a photo wasn’t taken, did they even go to the restaurant?

The rich people most of us know are those that gave a small bribe here, and another there, but who all in all make a majority of their money legitimately.

The ‘Rich Rich’

While it would appear that the only difference between ordinary Kenyans and High-Net-Worth-Individuals is that the latter have more money, the truth goes beyond this. 
Imagine the kind of rich where holidays are to exotic islands like Bora Bora. And like the Kardashians, you stay at the Four Seasons Resort, because your wife is enamoured by the village-chic look of the bungalow cabins. Their wooden walls and thatched roofs, each extended into the water and as she says “they feel like your very own island.” 
The kind of rich that affords you bespoke suits made by the same Italian brand that dressed James Bond actors Pierce Brosnan and Daniel Craig on set. If you are from Kenya, suits which, because of their very specific fabric, have to be laundered in Paris or London. In case you haven’t heard of them, Brioni is a fashion brand that has dressed the likes of "dollar billionaire" Donald Trump. Yes, there are Kenyans in that league. Maybe that was not the best comparison.

Are you a billionaire if you haven’t arrived in your own helicopter at one of your children’s British system boarding schools for a prize-giving ceremony? The prize for best arrival goes to…

Did you hear about the National Health Insurance Fund (NHIF) clerk that stole over Sh500 million, and would take a helicopter from Wilson Airport to his home in Athi River to avoid 30 kilometers of traffic? Well, he didn’t win the prize for best neighbour.

The kind of rich where as a guest of honour your words of wisdom to the audience are that if they think hard enough, then they too can get rich. Napoleon Hill is somewhere turning in his grave.

For a society like Kenya’s that has such an inequality problem, it is abundantly clear that richer people empathise very little with the struggles of the common mwananchi.

A few dozen people, enough to fit into Nairobi’s B-club, could have the power to help change our country for the better, but choose not to. Beer, talk, beer, talk, beer, tweet…seems to them a cooler way to change the country.

So if you’re thinking of joining them, think again.

Authors:
• Karim Anjarwalla, Managing Partner of ALN Anjarwalla & Khanna, Advocates
• Wandia Musyimi, Research Associate at ALN Anjarwalla & Khanna, Advocates
• Kasyoka Mutunga, Research Associate at ALN Anjarwalla & Khanna, Advocates
• Prof Luis Franceschi, Senior Director, Governance & Peace, The Commonwealth, London