Billionaires have a trifecta of traits to thank for their success which is preserved in fame, power, wealth, and prestige.
While many of the world's wealthiest people have earned their riches in different ways such as gambling their way up, inheritance, or building from scratch, their investments taste is strikingly similar.
In Kenya, a good number of wealthy politicians have joined the terrain of affluent investments. Just like their political influence, their urge to take on risks has grown exponentially over time.
Below are some of the lucrative investments they venture into.
The Stock Market
Churchill Ogutu, an economist at IC Asset Management, explains that a vast number of wealthy individuals invest in the stock exchange market due to its high returns in different forms such as dividends, securities, and equities. He added that the market tends to have an inflation hedge which appreciates overtime thus attracting wealthy investors.
According to the Wealth Report Attitudes Survey 2020, high net worth and ultra-high net worth clients have increased their private equity investments.
Additionally, a good number of politicians such as Deputy President William Ruto have invested in blue-chip companies.
Real Estate
By association, real estate features among lucrative investments for the rich owing to the many tax benefits. Real estate investors often end up paying less taxes overall even as it brings more income.
Not only does it add profit but also allows one to retain the money they make. Kenyan politicians such as Mombasa Governor, Hassan Ali Joho, have invested in exquisite palatial rental residences.
Land Investments
Politicians and billionaires' interest in land is out of a combination of increased property value, often driven by infrastructure development, agriculture, and land leasing.
Most of Kenyan politicians such as President Uhuru Kenyatta and Deputy President William Ruto have taken up extensive agricultural enterprises such as large-scale tea farming, coffee plantations, livestock rearing, and milk production.
Hospitality Industry
Several wealthy politicians such as Deputy President William Ruto own executive restaurants. The hospitality industry has high yield returns, a feature that highly attracts investors.
It derives much of its value from the proven ability to generate and the potential to increase income. In fact, the hotel’s operational nature is one of the primary reasons to invest in that industry.
Oil Production
Companies in the oil and gas sector often pay huge dividends to investors. These dividends allow investors in those companies to make regular income, therefore, attracting many investors
Politicians such as the Orange democratic Movement (ODM) leader, Raila Odinga, have invested in the production and distribution of liquefied petroleum gas.
