Officials of Kenya and Britain will be meeting on Tuesday to sign an agreement that will increase the rate of investments in the nation’s capital, ultimately transforming the city into a prime financial hub on the continent.
The goal of this deal is to create a portal through which an estimated US$2bn in fresh foreign direct investments can be channeled into Kenya over the next five years. It is hoped that this deal will make Kenya the Dubai of Africa, as far as trade is concerned.
The agreement includes measures that will strengthen ties between the stock exchanges of Nairobi and London, and also soften the restrictions associated with incorporation and registration in Kenya.
Under this latest alliance, British insurance firm Prudential became the first non-African firm to choose Kenya as the location for its regional headquarters. Prudential is a firm with over 1.2 million customers spread across eight African countries.
Mayflower Gold, a Kenyan mining firm, also intends to list its offerings on both stock exchanges, a deal estimated to be valued at £14m.
There are multiple deals linked to this alliance, including the stock exchange deal, a trade deal signed in December and ratified in March, and over a dozen other deals.
UK foreign secretary Dominic Raab will receive President Uhuru Kenyatta to the Mansion House in London on Tuesday to discuss £132m in fresh British investments in Kenya. “This package of investments will create new jobs and unlock new opportunities for the UK and Kenyan businesses by strengthening the relationship between Nairobi and the City of London,” said Raab.
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