What You Need to Know
High-net-worth investors in Kenya are increasingly favoring sustainable investments, according to Standard Chartered Bank. This trend is driven by a desire for both financial returns and positive environmental impact, with a notable shift away from traditional assets like real estate towards green opportunities in renewable energy and agriculture.
Africa-Press – Kenya. High-net-worth investors are increasingly pivoting toward sustainable and impact-driven opportunities, reflecting a broader shift in how wealth is created and preserved in Kenya’s evolving financial landscape.
Speaking at a media roundtable in Nairobi, Standard Chartered Bank’s Head of Affluent and Wealth Solutions for Kenya and East Africa, Paul Njoki, said that green investments are fast emerging as a preferred asset class among wealthy clients.
This, he said, is driven by both returns and a growing emphasis on environmental, social and governance (ESG) considerations.
“High-net-worth investors are increasingly aligning their portfolios with climate-conscious opportunities, including renewable energy, climate-smart agriculture and green infrastructure,’’ Njoki said.
He added that this reflects a global shift where investors are not only seeking financial returns but also measurable environmental impact.
Sustainable investing—often structured around ESG principles—channels capital into companies and projects that address climate change and social challenges while remaining profitable.
His views reflects a recent Morgan Stanley survey, which found that the vast majority of both asset managers and asset owners increasingly view sustainable investment options as a key driver in awarding investment mandates.
Dubbed “Sustainable signals, institutional investors 2025,” the report surveyed more than 950 institutional investors across the world, including 664 asset owners and 303 asset managers.
According to the survey, institutional investors’ plans to increase allocations to sustainable investment have grown, with 86 per cent of asset owners expecting the proportion of their assets allocated to sustainable funds to increase over the next two years, up from 79 per cent in last year’s survey.
Similarly, 79 per cent of asset managers expect an increased proportion of their assets under management to be in sustainable funds, up slightly from 78 per cent last year.
Only two per cent of asset owners and three per cent of asset managers anticipate lower allocations to sustainable investments.
The 2025 Kenya Wealth Report by Knight Frank shows that wealthy Kenyans are retreating from real estate, with only 22 per cent investing in residential property — down from over 50 per cent in 2024 — as they shift to more liquid income-generating assets.
According to the report, Wealthy Kenyans are now favouring financial instruments like treasury bonds, money market funds, and shares in real estate investment trusts (REITs), which offer easier exits and more stable returns.
“Other emerging preferences include technology, agriculture, and renewable energy sectors, which are perceived as more responsive to current market dynamics,’’ the report reads.
Investments in ESG-focused projects in Kenya are expected to grow by 17 per cent year-on-year until 2030.
Besides ESG, James Ouma Orero, Head Executive Director, Wealth Products & Africa (Kenya, East) at Standard Chartered, says that Kenya’s investment landscape is undergoing a structural shift, with individuals and institutions moving away from traditional savings toward professionally managed portfolios.
He says that market data shows that demand for wealth management products, ranging from money market funds to offshore investments, has surged, underpinned by rising financial literacy and a desire for long-term financial security.
According to him, Standard Chartered’s own performance reflects this trend.
The bank’s assets under management (AUM) in Kenya rose sharply to about Sh302 billion in 2025, a 29 per cent increase, signalling growing client confidence in structured investment vehicles.
“The expansion has been supported by strong uptake of products such as the SC Shilingi Fund, as well as advisory-driven portfolio construction, where clients are guided on asset allocation, risk management and cross-border diversification.”
He adds that affluent clients are increasingly allocating funds to offshore investments, seeking diversification across geographies and asset classes.
He revealed that nearly half of Standard Chartered Kenya’s AUM now includes international assets, reflecting a deliberate move away from concentration risk in domestic markets.
“This positions local investors to both benefit from inbound capital flows and participate in global opportunities through multi-asset portfolios spanning equities, bonds, commodities, and alternative investments,’’ Orero said.
He added that the growth in wealth solutions is also being powered by digital platforms and personalised advisory services.
According to Njoki, financial institutions are increasingly leveraging technology to make investment products more accessible while strengthening relationship management to retain clients and grow wallet share.
“The convergence of these trends, growing interest in ESG assets, demands for diversification, and increased reliance on professional advisory, signals a maturing investment culture in Kenya.”
In recent years, the investment landscape in Kenya has been evolving, with a noticeable shift towards sustainable and impact-driven opportunities. This change is influenced by global trends in environmental, social, and governance (ESG) investing, where investors seek not only financial returns but also measurable positive impacts on society and the environment. As financial literacy increases, more affluent individuals are diversifying their portfolios, moving away from traditional assets like real estate to more liquid and responsive investments such as treasury bonds and renewable energy projects.
