The Kenyan Government has officially launched the Nairobi International Financial Centre (NIFC), a flagship initiative under the economic pillar of Kenya’s Vision 2030. NIFC is designed to strengthen the country’s global competitiveness by making it easier and more attractive to invest and conduct financial services, transactions, and related activities. NIFC aims to raise over $2 billion targeted incremental cumulative investments by 2030.
With technical assistance from the UK in its formative years, NIFC will target global and regional businesses that provide large pools of capital while driving innovation. The center aims to attract private equity and venture capital firms, asset managers, insurance companies and financial services companies with a focus on fintech and green finance.
As the third-largest economy in sub-Saharan Africa, Kenya is already a vibrant commercial hub, with major global companies choosing to locate their regional headquarters in Nairobi.
In collaboration with the CityUK, and stakeholders from both Kenya and the UK, NIFC, has developed a diagnostic report on Kenya’s fintech policy and regulatory environment, and on funding mechanisms. The centre has also developed tools that would be useful for fintechs looking to scale their operations.
The NIFC general regulations have been enacted and the initial set of tax incentive proposals have been passed. Companies operating a carbon market exchange or emission trading system under the NIFC will benefit from 15% corporate tax for the first 10 years of operation. Investor companies certified by the NIFC Authority and have invested a minimum of Ksh 5 billion will benefit from the certainty that the Capital Gains Tax applicable at the time they make their investments will remain unchanged during the lifetime of the investments.
The NIFC Authority is working closely with the Department of Immigration Services (DIS) and the Kenya Revenue Authority to ensure the Centre’s needs are well catered as is expected in any globally competitive financial centre. Firms considering conducting business through the NIFC must apply for certification from the NIFC Authority. The NIFC Authority will provide a checklist of the required documentation and upon receipt will review and process all applications. Certification is open to both domestic and international firms as long as they meet the requirements.
READ; Nairobi Improves Ranking in Global Financial Centres Index
