Ruto’s Directive Sparks Exodus: 100 Millionaires Flee Kenya in 2022
A new global report reveals that approximately one hundred millionaire investors left Kenya in 2022 due to political unrest and a high tax rate.
According to the Henley Private Wealth Migration Report 2023, released on Tuesday, June 13, wealthy individuals flew out of Kenya in search of nations with lower tax rates.
This demonstrated the ripple effect caused by President William Ruto’s administration’s desire to raise taxes and increase revenue.
The report also indicated that 100 millionaires would leave the country in 2023, indicating that investors are concerned about Kenya’s current situation.
Misha Glenny, a British journalist and the rector of the Institute for Human Sciences in Vienna, stated that High-Net-Worth Individuals (HNWI) are primarily attracted to areas of personal liberty and political stability.
HNWIs are individuals who have accumulated at least Ksh139 million ($1 million) in assets.
In addition to low taxation regimes and personal freedom, political stability is the most important criterion for determining where to live. The report quotes Glenny as saying, “Until the Russia-Ukraine war ends, both countries will continue to export HNWIs, and this will remain the single largest driver of relocation.”
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Sunita Singh-Dalal, a partner at Private Wealth and Family Offices at Hourani, cited rising debt, a dysfunctional healthcare system, and a high crime rate as additional reasons why millionaires are leaving the country.
During the electioneering period preceding the General Election on August 9, 2022, political instability caused uncertainty among the majority of tycoons who sought to relocate their investments to other nations.
The report revealed the most recent inflows and outflows of multimillionaires in 2022, as well as projections for 2023.
According to the Henley Private Wealth Migration Report 2022, the number of HNWI in Kenya is projected to increase by fifty percent over the next ten years.
In 2021, the number of dollar millionaires in Kenya increased by 2%.
Total dollar millionaires
Henley & Partners’ Africa Wealth 2023 report ranks Kenya as the fourth wealthiest country on the continent, with 7,700 dollar millionaires and 15 centi-millionaires (individuals whose wealth totals Ksh13.6 billion).
A well-developed banking system, robust ownership rights, the development of key industries, and media freedom were among the factors that contributed to the country’s rising prosperity.
Ruto’s Directive Sparks Exodus: 100 Millionaires Flee Kenya in 2022
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