A New Era of Wealth Migration

A significant realignment is underway in the world of private wealth management as high-net-worth individuals (HNWIs) and their families are increasingly relocating their family offices—the private firms that manage their vast fortunes. This migration, driven by a potent mix of geopolitical instability, rising tax pressures in traditional economic centres, and the search for regulatory certainty, is reshaping the global map of wealth. According to a November 2025 report by Standard Chartered Global Private Bank, protecting wealth from inflation, geopolitical tensions, and cybersecurity threats are primary drivers for these strategic moves.

Family offices, which manage everything from investments and succession planning to philanthropy for a single family, are moving away from historical hubs in Europe and North America. Instead, they are flocking to emerging safe havens that offer financial privacy, stability, and attractive regulatory frameworks. This global shift presents both a challenge and an opportunity for nations like Kenya, which must decide how to position themselves in this high-stakes competition for capital.

The Rise of New Global Hubs: Dubai and Singapore

At the forefront of this relocation boom are Dubai and Singapore, which have aggressively courted the world's wealthiest. Dubai, through jurisdictions like the Dubai International Financial Centre (DIFC) and the Dubai World Trade Centre (DWTC), offers a compelling package: zero personal income tax, robust legal frameworks often based on English common law, and simplified regulations. In early 2023, the DIFC enacted new Family Arrangements Regulations, which streamlined the process for setting up family offices and enhanced privacy by removing the need for certain registrations with the financial regulator.

Similarly, Singapore has established itself as a premier wealth management centre through a suite of sophisticated tax incentives. Schemes such as Section 13O and Section 13U of its Income Tax Act provide tax exemptions on income from funds managed in the city-state, provided certain conditions are met, such as a minimum fund size—S$20 million for Section 13O and S$50 million for Section 13U—and the employment of investment professionals. The government also encourages philanthropic activities through tax deduction schemes, aligning wealth preservation with social impact.

The Kenyan Context: Capital Flight or Untapped Opportunity?

For Kenya, this global trend carries dual implications. The 2024 Africa Wealth Report noted that Kenya is home to 7,200 dollar millionaires, a number that highlights a significant domestic pool of wealth. Historically, a substantial portion of this wealth has been held in offshore jurisdictions, with some estimates suggesting as much as KSh 5 trillion. The global move towards more stable and private financial hubs could exacerbate this capital flight as Kenyan HNWIs seek to safeguard their assets from domestic economic headwinds and fiscal pressures.

However, recent data suggests a counter-trend may be emerging. The Knight Frank Wealth Report for 2025 indicates that Kenyan HNWIs are showing a renewed interest in domestic investments, shifting away from foreign assets. This pivot is towards more liquid, income-generating local opportunities in sectors like technology, food production, and renewable energy. According to the report, 66% of Kenyan HNWIs favoured Kenya as their primary investment location, a significant increase from 33% the previous year, citing rising uncertainty in many global markets. The growth in the number of HNWIs in Kenya was modest in 2024, with over 60% of wealth managers reporting an increase of less than 10%, reflecting a cautious economic environment.

While Kenya has a framework for offshore family trusts that offers tax advantages, it has yet to position itself as a major international hub for family offices. The Nairobi International Financial Centre (NIFC) is a key initiative aimed at attracting global capital, but its competitiveness against established centres like Dubai, Singapore, or even Mauritius requires continuous development of its legal and regulatory offerings.

Navigating the Future of Wealth

The relocation of family offices is more than a niche financial trend; it is a barometer of global economic and political confidence. For the ultra-wealthy, the primary goals are wealth preservation across generations and risk mitigation. The current migration reflects a strategic move towards jurisdictions perceived as stable, business-friendly, and discreet.

For Kenya, the challenge is twofold. First, it must create a sufficiently stable and attractive domestic economic environment to retain and repatriate local capital. The recent inward-looking investment trend among Kenyan HNWIs is a positive sign, but it is fragile and dependent on sustained economic stability and predictable policy. Second, to attract foreign family offices, Kenya must enhance the NIFC's value proposition, ensuring its regulatory framework, tax incentives, and political stability can compete with the world's leading financial hubs. As trillions of dollars seek a secure home, the decisions made today will determine whether Kenya benefits from this great wealth migration or watches from the sidelines.