An additional 25 companies have joined the Nairobi International Financial Centre (NIFC) following the introduction of new tax incentives through the Finance Bill 2025, marking its most notable progress since its inception in 2014.
NIFC Chief Executive Officer Daniel Mainda said the institution has seen increased interest from international financial firms after the introduction of the new incentives. A further 25 firms have since joined, raising the total number to 28.
“Last year, as we went to propose the incentives, we had about two or three firms in NIFC. In the advent of the new incentives, which are now law, we’ve had about 25 new firms that have joined NIFC,” he told Business Daily in an interview.
“By the end of June this year, we will have a total of about 40 firms. Our target is to have 150 firms by the end of this year,” he added.
The National Treasury from 2025 allowed companies operating under the Nairobi financial hub to pay a lower corporate income tax of 15 percent for the first 10 years and 20 percent for the next 10 years, on condition that they inject Sh3 billion into the Kenyan economy.
The tax incentive is, however, conditional on the company being a holding company, having its regional headquarters in Kenya, and ensuring that at least 70 percent of its senior management employees are Kenyan citizens.
The Treasury also allowed start-ups operating under Nairobi’s financial hub to pay a lower corporate income tax of 15 percent for the first three years and 20 percent for the next four years as part of a strategy aimed at attracting investment into the country.
A “start-up” is defined as a private limited company legally recognised under Kenyan law that has existed for not more than 10 years and demonstrates strong growth potential, incremental innovation or a disruptive business model.
Most start-ups in Kenya are currently concentrated in sectors such as fintech, healthtech and agriculture.
Previously, the lower tax rate applied only for the first 10 years and was limited to companies that invested at least Sh5 billion. It also did not include start-ups or offer them any special treatment.
At its launch in 2022, the NIFC had signed three companies – Prudential PLC, Arc Ride Kenya and AirCarbon Exchange (ACX). These remained the only firms in the centre for the next two years.
Mr Mainda did not disclose the specific companies that have since joined the hub and are at different stages of setting up in the country. However, he said they include financial services firms restructuring into holding companies, fintechs and private equity funds.
In addition to the 25 firms that have joined, he said the NIFC is in discussions with about 50 virtual asset companies seeking to join the hub. Their entry will depend on licensing once crypto registration guidelines are published by the Central Bank of Kenya and the Capital Markets Authority.
More firms joining the NIFC could translate into additional jobs and foreign exchange inflows, supporting Kenya’s economic resilience and growth.
An international financial centre is a location that provides venues and facilitating services for international financial activity in areas such as banking, asset management, insurance and financial markets, operating within a regulatory framework that meets international standards.
