The United Nations Conference on Trade and Development in July revealed that foreign direct investment (FDI) inflows into Kenya hit Sh413 billion in 2025, more than doubling figures recorded three years ago.
According to the report, the rise is partly attributed to both external factors, such as investors seeking new frontiers amid growing geopolitical tensions in other economies, as well as internal factors, such as wide-ranging reforms Kenya has instituted in its capital and money markets.
While the growth has been commendable, Kenya still lags countries like Egypt and South Africa, and the emergence of other economic powerhouses including Ethiopia and Rwanda has raised the competitive stakes.
This has prompted the exploration of other avenues to channel new investment into the country, and one of these emerging options for Kenya is family offices, favoured by high net worth individuals (HNWI) to professionalise the management of their estates.
Family offices are private wealth management advisory firms that serve ultra-HNWIs.
Family offices offer a wider range of financial services than most wealth management shops. For example, in addition to investment planning and management, many family offices manage their clients’ budgets, insurance, charitable giving, wealth transfer planning, tax services, and more.
The private family offices have grown in popularity among HNWIs looking to diversify their investment income, formalise the running of their family businesses, and manage and safeguard their financial legacies.
A report by UBS Global Wealth Management released in June this year, looking at 307 family offices with an average net worth of $2.7 billion, found that family offices continue to diversify across assets, currencies and regions.
Currently, North American assets and developed markets remain the backbone of most portfolios, with UBS indicating just a fraction (1 percent) of regional asset allocation by HNWIs is directed at Africa. This presents an opportunity for Kenya to position itself as a preferred destination for wealthy families to set up shop.
In the first place, the traditional perception of family offices serving as avenues to protect wealthy oligarchs who park assets in offshore accounts and low-tax jurisdictions is changing.
Family offices today are becoming more professional and diversified in their portfolios as more and younger individuals enter the HNWI bracket.
The institutions today are characterised by higher levels of external expertise as opposed to close relatives and a family lawyer making all the decisions. In addition, increased connectedness in the global economy facilitated by technology has presented new avenues and asset classes available to portfolio managers.
This is where Kenya comes into the picture. Kenya’s economy is much more diversified and connected to the global economy. Recent reforms in corporate governance, legal practice, investor protection fiscal policy also make Nairobi an ideal hub for setting up family offices.
Gleaning insights from protracted legal wrangles over the estates of deceased patriarchs, more business leaders today are actively developing and reviewing their succession plans to future-proof their legacies.
Family disputes, including divorce, lack of succession planning, or the sidelining of younger heirs from key decisions have been identified as some of the leading threats facing these institutions. Private family offices serve to professionally navigate the challenges outlined above, and for many HNWIs, they serve a crucial function in safeguarding their investment priorities despite economic headwinds.