SACRIFICED: Suspended Tuskys Supermarket CEO Dan Githua was caught up in owners’ family feud.
Inheritance a headache for billionaires – wealth report
AFRICA’s wealthiest, including those in Kenya where dollar-millionaires rose by 200 last year, are worried over succession plans and future growth of their empires.
The Attitudes Survey published in the Knight Frank Wealth Report 2016 suggests Ultra-High-Net-Worth Individuals fear their children may not be encouraged to create their own wealth. These rich people, the survey indicates, are increasingly investing in succession and inheritance plans to keep their riches growing and benefit their future generations.
UHNWI are those individuals whose wealth, excluding their residences, is valued over $30 million (Sh3.05 billion).
As a result of the succession concerns, these rich individuals are keen on preparing their children to deal with pressures of inherited wealth and reduce the risk of squandering it.
Kenya – ranked fourth in Africa in terms of dollar-millionaires (with more than Sh101.58 million) after South Africa, Egypt and Nigeria – was the only country that experienced a growth in individual fortunes last year compared to 2014, according to the report.
The survey, based on 400 of the world’s leading investment bankers and wealth advisors, estimated the number of Kenyan dollar-millionaires at 8,500 in 2015, 2.41 per cent more than 8,300 individuals in 2014.
About 340 individuals out of the 8,500 are worth more than $10 million (Sh1.01 billion), 105 own more than $30 million (Sh3.05 billion) while 16 have wealth in the upwards of $100 million (Sh10.16 billion). One Kenyan is a dollar-billionaire (at more than Sh101.58 billion).
Cases of family infighting for inherited wealth have been rife in the country, with some like those involving late politicians Gerishon Kirima and Kihika Kimani turning violent. Directors of family-owned retailer Tuskys – founded by Joram Kamau – is also facing management problems due to sibling fights.
“We recognise that the top concern for the UHNWIs’ remains the need to ensure that their wealth successfully transfers