Analysis of the 850-investor survey revealing increased allocations to East African markets. John D'Angelo examines interest rate trajectories and their differential impact on Grade A office cap rates versus logistics assets.
Key Metrics
Strategic Implications
According to the Kenya National Bureau of Statistics, the construction sector rebounded to 5.7% growth in Q2 2025, reversing the 3.7% contraction recorded in Q2 2024 [^9^]. This macro recovery correlates with Knight Frank's observation of Nairobi's Grade A office vacancy declining to 15.3%—a 400 basis point improvement year-on-year—as multinational corporations executing "flight-to-quality" strategies absorb premium stock in Westlands and Gigiri [^1^][^3^].
For the UHNWI investor, the data presents a contrarian entry window. With only 6% of Kenyan wealth managers overseeing portfolios exceeding $1 billion, and capital rotation away from residential assets (allocation dropping from 60% to 20%) toward REITs and income-generating commercial infrastructure, institutional-grade office assets offer defensive positioning [^24^][^26^]. Stanlib Fahari I-REIT's current 9.6% yield—despite regulatory non-compliance on distribution ratios—signals underlying asset resilience [^18^][^30^].