Family businesses across Africa are creating wealth at an unprecedented pace, but without deliberate succession and governance planning, much of that wealth may never reach the next generation.
That message dominated the second edition of the Nairobi Private Wealth Conference, held Monday at the J.W. Marriott in Nairobi. Convened by Tarra Agility Africa in partnership with Standard Chartered, the conference brought together more than 250 entrepreneurs, high-net-worth individuals, family office executives, and professional advisers under the theme, “Lasting Legacy in an Evolving World.”
Central to the discussions was what speakers described as one of Africa’s most pressing economic challenges: the widening gap between wealth creation and wealth preservation.
“Hope is not a plan”
Opening the media briefing, Marjorie Kivuva, Partner, Private Wealth and Head of Legal at Tarra Agility Africa, said legacy planning across Africa too often begins only after a crisis has occurred.
“The unfortunate reality is that for many families, legacy planning is not a decision. It happens by chance and is triggered by something unpleasant—an illness, death, a dispute or a divorce,” Kivuva said. “At this point, the family is no longer planning. It is reacting. Emotionally.”
She pointed to sobering global statistics. Only about 30% of family businesses survive into the second generation, while just 10% make it to the fourth. In Africa, the stakes are even higher. Family-owned businesses account for more than 60% of the continent’s private-sector employment and economic output, yet relatively few have formal governance or succession structures in place.
Kivuva said every family enterprise should prepare for what she described as the four inevitable disruptions: death, disability, disagreement and divorce.
When a founder dies without a valid will—or leaves behind one that can be contested—the courts determine how assets are distributed. Lengthy legal battles can significantly erode the value of a business before succession is resolved.
Other threats are less visible but equally disruptive. If a business owner becomes incapacitated, who signs contracts, negotiates deals or mentors the next generation? Without proper legal documentation, families may also lose the ability to execute key instruments such as wills, trust deeds and shareholders’ agreements.
Disagreements among family members can be equally costly. Kivuva cited instances where investor transactions collapsed after relatives failed to agree on valuation or sale terms. Divorce can also destabilise businesses when personal and corporate assets are intertwined, creating financial liabilities and governance paralysis.
“The solution begins with deliberate planning and the right legal architecture,” she said. “Family businesses ought to have a clear separation between shareholders, the board of directors and senior management. This ensures that even where there is disruption at the shareholder level, the day-to-day business of the company continues to be managed professionally.”
Cross-border wealth requires stronger governance
Beatrice Njeri, Partner, Tax and Accounting at Tarra Agility Africa, said the complexity of wealth management has grown as African families increasingly hold assets across multiple jurisdictions.
“Wealth in Africa today increasingly spans multiple jurisdictions and asset classes,” Njeri said. “Many affluent African families own businesses, property, investment portfolios and other assets across several countries, exposing them to overlapping legal, regulatory and tax obligations.”
She illustrated the challenge with the example of a Kenyan family simultaneously navigating Kenyan succession law, UK inheritance tax rules and UAE estate administration requirements.
Without carefully structured arrangements—including wills recognised across relevant jurisdictions, trusts that hold cross-border assets and holding companies that consolidate ownership—families risk costly disputes, lengthy delays and unintended tax consequences.
Njeri emphasised that legal structures alone are insufficient. While wills record intentions, trusts protect assets across generations and holding companies strengthen business continuity, their effectiveness ultimately depends on sound tax governance.
“These legal structures, however, only deliver their full value when anchored by sound tax governance, ensuring that what is built legally is also efficient, compliant and resilient across borders,” she said.
Research on family offices consistently shows that governance failures and poor communication—not poor investment decisions—are the leading causes of generational wealth loss. Njeri therefore urged families to begin planning early and seek multidisciplinary advice before challenges emerge.
Positioning Nairobi as a regional wealth hub
The conference also marked an important milestone for Kenya’s private wealth sector.
Speakers noted that while cities such as London, Geneva and Singapore have long hosted internationally recognised private wealth forums, Kenya—despite its rapidly expanding high-net-worth population—has lacked a comparable platform.
“Internationally, London hosts the STEP Conference, Geneva hosts leading international wealth planning forums, and Singapore has become a recognised hub for private wealth dialogue in Asia,” Kivuva said. “By responding to the real challenges facing family businesses and wealth holders, the Nairobi Private Wealth Conference is positioning Kenya as a leading African centre for legacy planning.”
Njeri added that shifting geopolitical and economic dynamics present Africa with an opportunity to move from being largely a consumer in global value chains to becoming a producer of long-term value. Achieving that vision, she said, requires enterprises that can survive beyond their founders.
From awareness to action
Both speakers encouraged families to begin succession conversations while founders remain actively involved in their businesses.
Those discussions, they said, should extend beyond inheritance to include family values, governance structures and the long-term purpose of wealth.
Supported by wills, trusts, holding company structures, family constitutions and formal succession plans—and reinforced by coordinated tax strategies—these conversations often determine whether a family’s legacy endures across generations.
Tarra Agility Africa, an international tax, legal and accounting advisory firm, said its integrated service model enables clients to receive multidisciplinary advice under one roof.
“What our clients find useful is that we offer tax, legal and accounting advice as a single service,” Kivuva said. “The tax advisory layer makes all the difference. We do this by integrating legal structuring with robust tax governance.”
Njeri concluded by reaffirming the firm’s commitment to helping African families preserve and grow their wealth over the long term.
“At Tarra Agility Africa, we believe preserving wealth is not simply a legal exercise, but a strategic, family-centred and future-focused process that requires planning, governance, education and collaboration,” she said. “Through the Nairobi Private Wealth Conference, our goal is to help shape a stronger culture of wealth stewardship across Kenya and the continent—today and for generations to come.”
The conference’s central message was unmistakable: creating wealth is an achievement, but preserving it requires discipline, foresight and intentional planning. In an increasingly complex world, the future of Africa’s family enterprises will depend not only on how wealth is created, but on how well it is protected and passed on.
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