Launch of Nairobi finance hub pushed to next month

The launch of the Nairobi International Finance Centre (NIFC) has been pushed to next month.

The management of the proposed regional finance nerve centre has not given reasons for the push for the launch which was set for Tuesday this week.

The delay nevertheless means that the NIFC, a business environment established to make Nairobi an attractive investment decision, will wait longer before enlisting firms.

Acting NIFC CEO Oscar Njuguna says interest in the finance centre remains even as potential listees await for the formalisation of the hub before signing up.

“There are a lot of firms interested but one optical issue they have been having is whether we are open for business and if they can apply right away,” Mr. Njuguna told Citizen Digital.

According to the hub’s administrator, international players and local businesses looking to grow across the continent have registered the most interest in joining the NIFC.

Moreover, interest in the centre is expected to increase off the back of incentives announced in the 2022 Finance Bill which now awaits presidential assent.

The incentives include the inclusion of non-residents in transfer pricing rules under a preferential tax regime and the halving of the rate of income tax for companies operating a carbon market exchange in the NIFC for the first ten years.

“It will be the first time that there is a signalling through the NIFC that the government is seriously taking the task of creating the finance centre. This once assented to will lead to more interest in the IFC,” added Mr. Njuguna.

So far, only global insurer Prudential has announced it would be joining the NIFC and is set to receive its certificate in and around the launch date which is tentatively set for July 7.

In setting up a distinct financial hub in the NIFC, the government is hoping to borrow a leaf from other financial centres across the globe which includes New York, Shanghai, Frankfurt, Casablanca and Johannesburg.

Nairobi is backing itself to be a regional leader in fintech & technology, green finance and cross-border services.