Kenya caps 2019 in loss after Ugandan President Yoweri Museveni reached a deal with the African Export Import Bank (Afreximbank) to locate its Sh3 billion regional headquarters in Kampala, ending a three-year bid to set it up in Nairobi.
The agreement, signed in September, paved the way for the construction of the multibillion trade bank office, denying it benefits that come with hosting a top international organisation.
Speaking after signing the hosting agreement, President Museveni commended Afreximbank for choosing to establish the Branch Office and promised support to ensure success.
Kenya caps 2019 in loss after Ugandan President Yoweri Museveni reached a deal with the African Export Import Bank (Afreximbank) to locate its Sh3 billion regional headquarters in Kampala, ending a three-year bid to set it up in Nairobi.
The agreement, signed in September, paved the way for the construction of the multibillion trade bank office, denying it benefits that come with hosting a top international organisation.
Speaking after signing the hosting agreement, President Museveni commended Afreximbank for choosing to establish the Branch Office and promised support to ensure success.
“I believe with the presence of Afreximbank in Kampala is signal to others that Uganda is open for international business,” Mr Museveni tweeted after the September meeting.
“The bank will also lead to job creation and expansion of cash liquidity which will be consequential in changing the population structure of Uganda from pre-capitalism,” he said.
Observers had earlier questioned Kenya’s decision to delay approvals warning relocating to Kampala or another country meant all potential benefits of hosting such an office, including investment in buildings, rents and employment, would be lost.
They saw the loss of hosting rights to Kampala as a blow to President Uhuru Kenyatta’s efforts to create a regional financial hub in Nairobi.
The regional trade bank had earlier said Kenya’s reluctance to grant it diplomatic status had forced the agency to woo Kampala for the setting up of the headquarters.
Benedict Oramah, the chairman and president of African Export-Import Bank, had earlier said Nairobi kept it waiting for more than three years for the necessary approvals.
“It took too long to obtain the necessary approvals from Kenya, that is the reason we made the decision to go to Uganda at their invitation,” Dr Oramah had said.
Afrexim, which finances and promotes African trade, has in the past decade become a significant player in Kenya’s economy, having financed big-ticket deals, including national carrier Kenya Airways.
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