New Bill seeks to make Nairobi financial hub

Kenya has embarked on laying the legal groundwork to transform the country’s capital into a financial hub, with invitation for public scrutiny on the proposed Nairobi International Financial Centre Bill, 2016.

According to National Treasury Cabinet Secretary Henry Rotich, the proposed law will lay the framework for establishment of the centre modelling Nairobi as a financial district on the lines of existing hubs of international stature in European, Middle East, and Far East capitals such as London, Hong Kong and Dubai.

“The Bill provides a framework to facilitate and support the development of an efficient and globally competitive financial services sector in Kenya that generates high levels of national savings and investments,” says Mr Rotich.

Increase employment

The proposed law envisions the setting up of Nairobi International Financial Centre Authority to preside over activities of the financial hub.

It is expected that by aiming to become a hub, Nairobi would increase employment in financial services by attracting international capital issuers and investors to the country and the East African Community.

However, experts say Kenya must distinguish itself with an area of expertise if the efforts are to succeed.

“The idea of the international financial centre (IFC) is not to mimic other centres of gravity like Dubai or Mauritius. I think we need to further define our competitive edge and given the long-standing convertibility of the shilling — I personally sense a sub-Saharan Africa foreign exchange should be an area of expertise and differentiation for ourselves. The multiplier effect would be off the charts,” Rich management chief executive Aly Khan Satchu told the Daily Nation yesterday.

Other experts have said Kenya’s quest to make Nairobi a financial hub must be well thought out as other countries in the region are thinking along the same lines.