After years of planning to draw major multinational corporations and increase money flows, Kenya will today officially open its international financial centre in the nation's capital, Nairobi.
The Kenyan centre is anticipated to model Nairobi after existing financial districts in capital cities of Europe, the Middle East, and the Far East including London, Dubai, and Hong Kong.
Despite Kenya's reasonably established capital markets, the Treasury earlier stated that the situation was not ideal and that 75% of all business funding in the economy came through the banking sector, with the remaining 20% coming from capital markets.
The centre, whose construction began in 2014, is designed to assist in directing foreign investments to Kenya, allowing businesses and investors to take advantage of trade and investment possibilities. By 2030, it hopes to attract investments totaling more than $2 billion (Sh235.74 billion).
An IFC is a place with facilities and services that facilitate international business in industries including banking, asset management, insurance, and financial markets. It operates inside a legal framework that complies with global norms.
Oscar Njuguna, the interim chief executive of the Nairobi International Financial Centre (NIFC), recently stated that the organisation will assist businesses targeting the capital city through the hub in obtaining work permits and other regulatory licences more quickly.
According to regulations released by the Treasury, organisations wanting to join the NIFC would pay Sh1 million for certification and Sh500,000 annually.
The NIFC seeks to broaden the capital pools accessible to local investors in addition to bringing money from across the world. The centre intends to strengthen the regional financial and capital markets in addition to acting as a gateway for investors into Africa.
Businesses will be able to take advantage of advantages offered by the NIFC in areas like taxation and immigration, which have been used by other cities to entice investment, including Dubai, London, and Johannesburg.
According to regulations released by Treasury Cabinet Secretary Ukur Yatani, start-ups must pay a lesser joining cost of Sh100,000 and a comparable yearly price.
Start-ups are businesses that are just getting off the ground and offer a unique or creative item or service.
The regulations stated that "a business would keep its start-up status for a period of three years, excluding the initial year of certification."
As an IFC in the continent, Nairobi joins Casablanca, Cape Town, Port Louis (Mauritius), and Johannesburg. On its side, Rwanda wants to make Kigali, its capital, an IFC. IFCs outside of Africa include those in New York, London, Shanghai, and Hong Kong.
The capital of Kenya, the third-largest economy in sub-Saharan Africa, serves as the regional headquarters for several significant international corporations.
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