Nairobi finance hub closer to reality as Uhuru signs law

The establishment of the Nairobi Financial Centre has moved a step closer to reality after the signing of the law that will guide the establishment of the long-awaited finance hub.

State House announced on Friday that President Uhuru Kenyatta had signed the Nairobi International Financial Centre Act, which will provide the legal framework to facilitate development of an efficient and globally competitive financial services sector in Kenya.

The Act also establishes the Nairobi Financial Centre Authority (NFCA), which will license firms that will operate within the centre and also formulate the legal and regulatory structures to support the centre.

“The Authority will develop and recommend strategies and incentive structures in collaboration with relevant agencies in order to attract firms to be NIFC firms,” said State House in a statement.

“It would also review and recommend in collaboration with the relevant regulatory authorities developments to the legal and regulatory framework in order to develop Kenya as an international competitive financial centre.”

Renminbi clearing house

The NIFC, which Kenya has been planning to establish since 2008, is meant to cement Nairobi’s status as the regional financial hub.

It is intended to among other things lead to the establishment of a clearing house for the Chinese Renminbi with an eye on the booming trade between China and African states.

The establishment of the NIFC got a major boost in 2014 when the Qatar agreed to help Kenya establish the centre.

READ: KISERO: The Qataris are not through with Nairobi

The gas-rich Gulf State has since 2012 been offering advice to Kenyan Treasury officials on the formulation aspects of the centre.

However, much remains to be done before the NIFC is up and running, with the government expected to come up with rules on issues such as tax treatment of companies and deals within the finance hub.