Every year, global financial institutions and media outlets publish lists of millionaires and billionaires in Kenya alongside their counterparts across the globe.
While many believe earning Ksh1 million and above makes one a millionaire, most of these institutions rank the elite after careful analysis of financial documents and factoring in the country's taxation policies.
According to the Africa Wealth 2023 Report, there were 7,700 Kenyans with a net worth of over Ksh130 million (USD1 million). Only 15 Kenyans had a net worth valued at Ksh13 billion (USD93 million) and above.
On the other hand, Oxfam International, in its 2021 report detailed that 1,890 individuals in Kenya had a net worth of over Ksh615 million. This included 130 people with a net worth of over Ksh6.15 billion.
Here are some of the factors considered by leading institutions;
Forbes
The leading media outlet is behind the Africa Billionaire List which focuses on wealthy people on the continent.
Some of the factors considered include the net worth of individuals calculated through the estimation of revenues and profit from private companies. The valuation is also done on shares held in leading public entities.
Notably, the stock prices are calculated using the prevailing currency exchange rates.
Other measures considered are the investments made in car collections, artwork, real estate, art, and jewellery.
However, over time, the media outlet has also factored in the debt of an individual and the money used in charity work.
"While some billionaires provided documentation for their assets and companies, others were less forthcoming. To value private businesses, we coupled revenue or profit estimates with prevailing price-to-sales, price-to-earnings or similar ratios for similar public companies and applied a 10 per cent liquidity discount," Forbes explained in its 2022 Forbes 400 list.
Knight Frank
The company headquartered in London ranks billionaires and millionaires across the globe in its yearly publication - the Wealth Report.
Knight Frank - which is a real estate company founded in 1896, relies on data provided to them by leading financial institutions such as banks.
Additionally, through its regional offices, they also interview managers who are delegated to oversee assets of the who is who in Kenya.
Through the analysis, they are able to establish how many millionaires and billionaires are in the country.
Bloomberg
Similar to Forbes, Bloomberg also factors in shares held by individuals in private and public companies.
The financial media house - which ranks global billionaires daily - considers the debt of individuals in its indexing. In cases where the financial media company cannot ascertain the debt of individuals, the index uses the debt ratio of the billionaires' or millionaires' peers.
"The criteria used to choose peer companies is based on the closely held asset's industry and size.
"If a billionaire has pledged as collateral shares he or she holds in a public company, the value of those shares or the value of a loan taken against them is removed from the net worth calculation," the company explains on its website.
Some of the billionaires that have been named in some of the reports include former President Uhuru Kenyatta, Sameer Naushad Merali (richest in Kenya according to Oxfarm), Bhimji Depar Shah, Jaswinder Singh Bedi, Narendra Raval, Peter Muthoka and SK Macharia among others.
NOTE: Kenya does not have a dollar billionaire (Ksh139 billion).
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