The classic car market in Kenya is primed for megadeals by the world’s super-rich scouting for rare vintage vehicles.
The latest 2023 Africa Wealth Report published by research consultancy, New World Wealth and Henley Partners, lists Kenya among the top classic car markets in Africa eyed by high-net-worth individuals(HNWI).
“Classic car collecting is forecast to become significantly more popular in Africa going forward, especially in the more established car markets such as South Africa, Kenya, Egypt, and Morocco,” said the report.
“The following models are expected to be in high demand; the original Porsche 911 Turbo(the 1970s), the Ferrari 355(1990s), the Porsche 911 Carrera RS(1970s), the Aston Martin DBS (1960s), the Lamborghini Countach (1980s) and the Mercedes Benz 300 SL ‘Gullwing” (1950s).”
The classic car market has become popular with the world’s rich and famous who opt to invest their large sums of cash in rare and most-sought after machines. Vintage cars built by the Italian brand, Ferrari have over the years dominated the wish list of the super-rich globally.
According to Knight Frank’s 2023 wealth report, vintage cars have risen 185 per cent in value over the past decade, outstripping the growth of luxury rivals wine, watches, and art, and ranking second only to rare whiskies.
The vintage car market has expanded beyond small communities of collectors to include investors targeting higher returns than what is realised in stocks and bonds.
The classic car market in Kenya has over the years been shaped by retirees who showcase their collections through events such as the Concours d’Elegance, which is organised by the Alfa Romeo Owners Club but open to all makes of cars and motorcycles.
Apart from vintage cars, a report published last year showed that Kenya’s super-wealthy plan to invest their fortunes in special homes for the elderly and data centres.
The 2022 Knight Frank Wealth Report indicated that Kenyans with a net worth of more than Sh3.4 billion prefer investing in the two sets of assets for long-term returns.
Long-term assisted living centres have become a global craze amid growing uncertainty about health threats such as the Covid-19 pandemic.
The demand for assisted living centres for the elderly has particularly risen sharply over the past two years after this segment of the population was hit the hardest by the Covid-19 pandemic.
The health crisis triggered demand for more space due to social-distancing rules, which meant that existing amenities had to take in fewer people.
At the height of the pandemic, the world witnessed disturbing scenes where parking lots and other open spaces were turned into makeshift homes for the elderly.
The Knight Frank Wealth Report also shows that the super-rich are also betting on information technology for long-term returns.
Data centres have been a magnet for investors amid an expected global boom in online services. Working remotely and e-commerce have led to higher data consumption, shoring up demand for more data centres globally.
The rise of Olkaria as a preferred site for data centres could be linked to affordable and sufficient power, as the centres are electricity guzzlers.
The government targets to create a Special Economic Zone (SEZ) around the Olkaria geothermal field in order to woo investors with discounted electricity tariffs.
Businesses in SEZs pay a lower power tariff of Sh5 per unit, which is significantly lower than the normal tariff. The Energy and Petroleum Regulatory Authority last month revealed that no industry had set up shop at the Olkaria-Kedong SEZ in Naivasha.
