Financial Advisory - Kenya | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$5.06bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.20%, resulting in a market volume of US$5.11bn by 2029.

Definition:

Financial advisory is the process of providing guidance and recommendations to clients regarding their financial decisions. Financial advisors use their expertise and knowledge to help clients make informed decisions about their investments, retirement planning, taxes, insurance, and other financial matters. The Financial Advisory segment encompasses the revenues generated by this service by both financial institutions and advisors, and includes the number of financial advisors, average revenue per advisor, and assets under management (AUM).

Traditional Wealth Management (non-automated wealth management services)
Traditional Investment, incl. Financial Advisors
Banks, Financial Institutions, and Financial Services Companies
B2C & B2B Revenues
Full-Service Products for Insurance, Investing, Lending, and Trading

Commercial Assets or Assets Under Custody
Digital Wealth Management (automated wealth management services)
Digital Investment, incl. Robo-advisors and Neobrokers
Independent Financial Advisory Companies
Independent Financial Advisors (IFAs)
Retail/Non-Professional Investors

The Financial Advisory market in Kenya is experiencing significant growth and development.

Customer preferences: Customers in Kenya are increasingly seeking financial advisory services to help them make informed decisions about their investments and financial planning. This is driven by a growing middle class and an increasing awareness of the importance of financial planning and wealth management.

Trends in the market: One of the key trends in the Financial Advisory market in Kenya is the rise of digital platforms and technology-driven solutions. Many financial advisory firms are leveraging technology to provide online platforms and mobile applications, making it easier for customers to access their services. This trend is driven by the high mobile penetration rate in Kenya and the increasing use of smartphones for financial transactions. Another trend in the market is the growing demand for sustainable and socially responsible investments. Customers in Kenya are becoming more conscious of the social and environmental impact of their investments and are seeking financial advisors who can provide guidance on sustainable investment options. This trend is in line with the global shift towards sustainable investing and reflects the increasing awareness of environmental and social issues in Kenya.

Local special circumstances: Kenya has a well-established financial sector, with a strong presence of banks and other financial institutions. This provides a favorable environment for the growth of the Financial Advisory market. Additionally, the government of Kenya has been actively promoting financial inclusion and literacy, which has contributed to the increased demand for financial advisory services.

Underlying macroeconomic factors: The strong economic growth in Kenya, coupled with a stable political environment, has created a favorable economic climate for the Financial Advisory market. The country has experienced steady GDP growth over the past decade, driven by sectors such as agriculture, manufacturing, and services. This has resulted in increased disposable income and wealth accumulation among the population, leading to a greater need for financial advisory services. Furthermore, the regulatory environment in Kenya has been supportive of the Financial Advisory market. The Capital Markets Authority (CMA) regulates and supervises the market, ensuring that financial advisors meet the required standards of professionalism and integrity. This regulatory framework has helped to build trust and confidence among customers, further driving the growth of the market. In conclusion, the Financial Advisory market in Kenya is witnessing significant growth and development, driven by customer preferences for financial planning and wealth management, as well as the adoption of technology-driven solutions. The rise of sustainable investing and the favorable economic and regulatory environment in Kenya are also contributing to the growth of the market.

Data coverage:

The data encompasses B2C enterprises. The figures are based on gross revenues, assets under management, and user & advisor data of relevant services and products offered within the Wealth Management market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research activities (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, gross national income (GNI), consumer spending, total investment (% of GDP), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Private wealth management has developed significantly in recent years as a result of the growth of affluence worldwide. The number of millionaires in North America more than doubled between 2010 and 2022. A similar trend can be observed in the Asia-Pacific and Europe. The total wealth of the adult population in Europe has steadily increased since 2010. Private Wealth Management is an increasingly important service as the rate of wealth continues to increase among the general population and affluent high-net-worth-individuals. Coupled with the recent developments in the Fintech market, this has helped to open up new Private Wealth Management products and services to people with smaller amounts of disposable income and expanding services offered to larger clients.