By John Oyuke

Plans to establish Nairobi as an international financial hub are underway.  This follows the launch of talks between Government and a British firm to spearhead the initiative expected to create more jobs.

The Capital Markets Authority (CMA) is negotiating with TheCityUK, an independent membership body, promoting UK financial and related professional services, ahead of signing of a Memorandum of Understanding (MoU).

The drive gained impetus during the recent Kenya Investment Summit in London when the negotiations — due for conclusion by end of the year — were launched.

The agreement will develop a strategic link between the UK financial and professional services firm and CMA. In addition to jobs, the project is expected to help raise funds for projects and tap into new investments coming to Africa.

The proposed financial Centre would to be modelled after similar facilities in Qatar and Ireland. The complex would house investment firms, brokerage houses, insurers and banks, among other financial institutions.

 Experts say that the success of the project, aligned to objectives of Vision 2030 of positioning Kenya to attract fund flows into the country to support productive economic activities, depends on the proposed 5,000-acre Konza Technology City in Machakos County that would provide the vital high speed Internet infrastructure.

The CityUK Chief Executive Chris Cummings, said many UK-based financial and related professional services companies are active in Nairobi and the region, and there is huge potential to increase as the economy grows.

“Through our newly formed sub-Saharan Africa Market Advisory Group, we see a Memorandum of Understanding with Nairobi as an important part of this strategy in Africa,” he said confirming that the UK-wide financial and related professional services, is leading negotiations with Capital Markets Authority.

“Nairobi is Kenya’s largest financial services centre and is increasingly regarded as the gateway to East Africa and a transparent place to do business,” he said. Kenya has one of the largest financial services sectors in Africa contributing over 5 per cent to national GDP.

Speaking at the Investment Summit, Finance Minister, Njeru Githae, said the plan to sign a M0U was a clear demonstration of commitment of the State to host  up an International Financial Centre.

“This will be a major milestone for Kenya in our quest to become a middle income country and will help us mobilise financial resources which are critical in funding the Vision 2030 flagship projects,” he observed. 

The national development blue print, Vision 2030 recognises six priority sectors that will help the country become a middle-income economy by the year 2030.

Vision 2030 priority

These include tourism, agriculture, manufacturing, business process outsourcing, wholesale and retail and financial services. Under the financial services category the sector is expected to become globally competitive to enable it promote high levels of savings to finance the various Vision 2030 projects.

President Kibaki also addressed the Investment Conference where he called on investors to take advantage of the existing lucrative investment opportunities.

He said the enactment of a new Constitution and the massive infrastructure development across the country provides a conducive investment environment for investment in the country.

Githae said the partnership between TheCityUK and CMA will establish a robust framework and supporting infrastructure to create conditions that would lead to development of an international financial centre.

Mayor of the City of London and President of TheCityUK, Alderman David Wootton said the UK’s financial services firm and Capital Markets Authority share the common goals of ensuring the Kenyan financial services sector continues to be well regulated, transparent and competitive in a global market.

  “Developing Nairobi’s capacity as a financial centre will mean it is well placed to support creation of jobs and growth for the people of Kenya and across East Africa. We in the City of London want to play our part in this important work,” he said.