Kenya Beats Nigeria, Rwanda Among Richest Countries as Networth for Each Kenyan Hits Ksh 1M
The report on the world’s wealthiest nations highlights that Kenya’s residents have a stronger purchasing power compared to many other African countries.
Global Finance, a monthly publication renowned for its precise financial assessments, ranked Kenya at 142 among the world’s affluent nations. This positioning is ahead of Nigeria, the most populous country in Africa, and Rwanda, a nation known for its focus on investment.
In the ranking, Kenya’s per capita Gross Domestic Product purchasing power parity (PPP) indicates that the average value of each Kenyan is Ksh1.06 million (USD6,577).
The organization clarified that when calculating the PPP, it doesn’t depend solely on the Gross Domestic Product. Instead, it converts the value of products to USD to ensure a consistent determination of per capita net worth.
“However, only when taking into account inflation rates and the cost of local goods and services can we get a more accurate picture of a nation’s average standard of living, the resulting figure is what is called purchasing power parity (PPP), often expressed international dollars to allow comparisons between different countries,” the magazine described.
In contrast, Nigeria held the 145th position, just three places lower than Kenya, with a GDP-PPP per capita of Ksh995,914.
In contrast, Uganda held the 167th position, boasting a per capita GDP-PPP of Ksh521,931.
South Sudan, Malawi, Burundi, and the Democratic Republic of Congo were situated in the lowest 10 rankings. On a global scale, 12 of the countries comprising the bottom 20 in terms of poverty were located in Africa.
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Conversely, Luxembourg tops the list as the wealthiest country, boasting a GDP-PPP per capita of Ksh23 million. Following closely are Ireland (Ksh22 million), Singapore (Ksh21.5 million), Qatar (Ksh18.5 million), and Macao SAR (Ksh15.9 million), in that order, according to the ranking.
“Some very small and very rich countries – like San Marino, Luxembourg, Switzerland, and Singapore – benefit from having sophisticated financial sectors and tax regimes that attract foreign investment, professional talent, and large bank deposits. Others like Qatar and the United Arab Emirates have large reserves of hydrocarbons or other lucrative natural resources,” the magazine explained.
“Shimmering casinos and hordes of tourists are good for business too. Asia’s gambling haven Macao remains one of the most affluent states in the world despite having endured almost three years of intermittent lockdowns and pandemic-related travel restrictions.”
Previously, President William Ruto lamented that previous regimes ruined Kenya’s development trajectory for first-world status.
In the 1990s, Kenya was ranked a third-world country alongside Singapore which has since catapulted to first world and among the top 10 richest worldwide.
Kenya Beats Nigeria, Rwanda Among Richest Countries as Networth for Each Kenyan Hits Ksh 1M