Nairobi has joined an exclusive league of cities in the world that attract direct investments through a international Financial Centre(IFC). An international Finacial Centre acts as an incubation and promotion centre for foreign investors who seek to invest in a country.
Members of an International Financial Centre benefit from reduced cost of doing business, better and faster access to government licences among other benefits. The Kenyan government created a blue print for creating and operationalising the Nairobi International Financial Centre in the early years of the jubilee government.
Companies who join the NIFC as members will pay a registration fee of Kshs one million (1,000,000) for certification and an annual fee of about Kshs 500,000. Start ups have been spared the pain as they will only pay a certification fee of about Kshs 100,000. Members in this centre will enjoy relaxed measures in Tax and immigration as part of the package.
The centre was unveiled and launched officially on 4 July 2022 in a ceremony that brought together members of the private and the public sector. The centre will play a major role in fostering Development across the country. The Centre according to its Acting CEO, Oscar Njuguna, is expecting to bring in over 2 billion dollars in foreign investments in the country.
League of Cities
With the launch of the NIFC. Nairobi joins cities like Dubai, New York, London, Hong Kong, Johannesburg, Cape Town, Shanghai and port Louis in Mauritius. Among the list,Kenya Becomes the 5th country in the continent to launch such a financial district.
The city in the sun is only adding to its already growing image of attracting global companies. Major players in most sectors in the economy are choosing Nairobi as their Regional Headquarters. With the help of the NIFC,Nairobi will most likely topple the rest of the cities in Africa when it comes to attracting foreign investors.