Nearly a third of Kenyan investors are changing their investment plans in a bid to beat rising inflation, a new poll by Standard Chartered Bank revealed.
This comes amid economic uncertainty due to rising commodity prices, recession risks, and geopolitical shifts.
The survey by the lender noted that high inflation is prompting shifts in how investors allocate their funds across different asset classes, from cash and equities to digital assets and sustainable investments.
Investors are also looking at property and gold as potential hedges against inflation, it added.
“People are spending less and looking to invest more to prepare for the higher cost of future financial liabilities. Consequently, investors expect to reduce their allocation to cash in the coming years,” said Marc Van de Walle, the global head of wealth management in deposits and mortgages at Standard Chartered.
In Kenya, 95 percent of respondents said they have set up new goals for the future, with 50 percent of them citing rising inflation as the main challenge to achieving their investment goals.
Meanwhile, one-third (33 percent) cited uncertainty in the global economy and a fifth (22 percent) cited fear of poor returns on investments.
Some 53 percent of the respondents said they are saving for their children’s education, 51 percent said they are saving to keep up with the rising costs, and 50 percent for retirement.
Further, 73 percent of people surveyed are currently expected to invest more in digital assets in 2023, while only 10 percent are expected to invest less in 2023.
“Despite the recent upheaval in digital assets, Kenyans are still interested in them. This is reinforced by our research which shows that 75 percent of Kenyans surveyed still believe that digital assets are an important part of any investment portfolio and just 9 percent disagree,” said the study.
