Big win for SMEs as Nairobi becomes International Financial Centre.
UK announces £132m of new investments in Kenya and backs Nairobi as an international financial centre. SMEs in the country have opened their wide ideas ready to enjoy the slice share by the executive on the Euro money. This will help to channel international investment into Kenya and the wider region, making sure firms and investors are able to make the most of trade and investment opportunities.
The United kingdom government has offered Kenya an economic reprieve fund to help facilitate the ground economy balloon as far as possible.
According to the press list, the UK agreement had to focus on elevating the local business because, SMEs, to their level best.
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At the start of a three-day visit to the UK to co-host the Global Education Summit with Prime Minister Boris Johnson, Kenyan President Uhuru Kenyatta and Foreign Secretary Dominic Raab announce strengthened links between the City of London and Nairobi and welcome new investment package.
The president who was on a three day m visit to UK to co-host the Global Education Summit with Prime Minister Boris Johnson, President Kenyatta witnessed the signing of a new memorandum of understanding between TheCityUK and the Nairobi International Financial Centre Authority, establishing a formal partnership, including closer collaboration with the London Stock Exchange.
Despite the Kenyan economy receiving major backstab all from the pandemic, most SMEs have continuously stepped in to hasten the growth of the nation GDP.
Foreign Secretary Dominic Raab said: “This £132 million package of new UK-Kenya deals from the UK government and British firms will support investment in the region, including building new green affordable homes, connecting households to clean energy, and boosting manufacturing.
This package of investments will create new jobs and unlock new opportunities for UK and Kenyan businesses by strengthening the relationship between Nairobi and the City of London.”
The Kenyan SME economy has been depending majorly on the informal sector, with the consideration of the UK partnership, these sector would see a major rise in formal acquisition of the economy an advantage to competitive future.
According to the press release, British insurer Prudential intends to be the first firm to set up in Nairobi’s new International Financial Centre, while Kenyan mining company Mayflower Gold announced plans to dual list its shares on both the London and Nairobi Stock Exchanges in a deal worth £14 million.
Prudential PLC Chair Shriti Vadera said: “Africa is an important part of our long term growth strategy and I am delighted that the UK and Kenya are collaborating on financial services, where there are many opportunities for innovation. Prudential is proud to be working with both countries on this initiative.
We believe that deepening the financial sector across the continent is key to building and driving economic resilience, development and growth in a region of great promise and opportunity. Joining the International Financial Centre in Nairobi is testament to our long-term commitment to supporting financial sector development across Africa.”
The Big Four Agenda
In the spirit of his developmental campaigns the president championed for a hand in his big four agendas. Most SMEs in Kenya have been enjoying the system under the big four since it has provided them with an array of growth opportunities.
From funding, advisories, training and scholarships just to mention a few, most SMEs in Kenya have understood their position in the Kenyan economy.
With the president’s UK visit expectations stand tall.
President Kenyatta also secured the backing of UK investors to boost affordable housing and manufacturing across Kenya. £28 million of private investment in Kenyan manufacturing was confirmed today as a result of the UK’s Manufacturing Africa initiative, and UK company ARC Ride announced plans to invest £4.5 million in growing its fleet of electric vehicles in Kenya.
The Foreign Secretary also announced a new £58 million fund, anchored by £35 million of UK government investment, which will finance the construction of 10,000 green affordable homes in Kenya. This is on top of £53 million of investment in Kenyan affordable housing announced during the Foreign Secretary’s visit to Kenya earlier this year.
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Digitization of customs.
A new digital customs system for Kenya will make it faster and easier for goods to move between Kenya and the UK, and between Kenya and the rest of the world. Delivered by TradeMark East Africa, and backed by £18 million of UK funding, this will boost Kenya’s economy, allowing firms to take greater advantage of the recently ratified UK-Kenya Economic Partnership Agreement and grow our £1.4 billion mutual trade.
The winners of the funds
The £132 million funding would be distributed in the Kenyan economy for SMEs as follows.
- a new £58 million fund, anchored by £35 million of UK Government investment, which will finance the construction of 10,000 green affordable homes in Kenya
- £28 million of private investment in Kenyan manufacturing through the UK’s Manufacturing Africa initiative
- £18 million of UK grant funding for a digital customs system to help smooth Kenya’s international trade, including with the UK, and allow firms to take greater advantage of the UK-Kenya trade deal ratified at the start of 2021
- £4.5 million investment by UK company ARC Ride to expand their fleet of electric vehicles in Kenya
- £3.3 million investment from UK-backed InfraCo Africa to finance expansion of off-grid solar in Western Kenya, providing 6,000 Kenyan homes with access to clean energy
- £3.7 million support from the UK government to back Kenya’s green transition including projects supporting renewable energy, clean cooling, and forest restoration – including Kaptagat Forest, a project spearheaded by Kenyan marathon legend Eluid Kipchoge
- £1 million of UK aid funding for technical support, to structure Kenyan infrastructure projects so they are able to attract private investment
- £0.9 million investment from InfraCo Africa, backed by the UK government, in Nopea Ride, an electric taxi service
- £0.5 million of UK funding for policy advice on how to support the development of green manufacturing in Kenya, including of electric vehicles
- Mayflower Gold, a Kenyan mining company that employs 400 people, will float £14m of shares on the London and Nairobi stock exchanges.
The SME national capital has grown overtime, and that’s the reason most external financiers find it easy to grab the Kenyan market for investment. Kenyan SMEs ought to push more for rigidity in the economy as it has began sharing fruits.