After eight years of preparation, Kenya says it is ready to become an African financial hub, leveraging the Nairobi International Financial Centre (NIFC), which this week received the support of London, the world’s leading financial centre.
To position itself as a business and financial hub in East and Central Africa, Nairobi is seeking to attract global firms to set up their African headquarters.
The other established African financial hubs are Johannesburg in South Africa, Casablanca in Morocco and Mauritius.
The financial centre was one of the key highlights of President Uhuru Kenyatta’s discussions with British officials during his official visit to London this past week.
Kenya has been working since 2014 to establish the NIFC, aiming to become a gateway for capital flowing in and out of Africa and to compete with Mauritius, Morocco and South Africa.
But Nairobi is not the only East African city angling for these investments. Last year, Rwanda tapped Equity Bank Group to develop the Kigali Financial Towers, which will host the planned Kigali International Financial Centre.
Nairobi is hoping to model itself as a financial port of call in Africa, modelled against London, Dubai and Hong Kong.
Efforts to establish the centre have met several hurdles over the years, delaying its launch, which is now planned for later this year.
Speaking in London, President Kenyatta said the NIFC will make it easier and more attractive to invest in Kenya.
Support to global firms
"It is an initiative that was conceived when I was the Minister for Finance, and although it has taken a while to get here, I am pleased to say that it will soon be open for business. The centre will prioritise attracting capital and investment into development projects," the Kenyan leader said. "The NIFC is tailored to support global financial and professional services firms that want to establish their regional headquarters in Africa to set base efficiently and conveniently in Nairobi."A second agreement with the City of London will be signed later to help the NIFC piggyback on the world leader in the sector.In June 2013, the Cabinet approved the establishment of the NIFC, to be managed by the Nairobi International Financial Centre Authority, but the efforts have suffered setbacks over the years.The Capital Markets Authority (CMA) has failed to achieve key performance indicators, citing the Covid-19 pandemic, waning investor confidence in the capital markets, low uptake of investment products and poor listing on the Nairobi Securities Exchange.Attaining […]