Kenya is renewing its push to establish Nairobi as a premier financial hub in Africa, unveiling a bold, multi-pronged strategy that positions the financial services sector as a central engine of economic transformation.  

Treasury Cabinet Secretary John Mbadi, speaking at a high-level roundtable on Nairobi’s future as a gateway to African markets, laid out the government’s vision to anchor long-term growth through trust, innovation, and competitiveness in finance.

Central to the plan is attracting long-term capital through restructured fiscal policies designed to appeal to pension funds, sovereign wealth funds, and global institutional investors.

This is part of a broader recalibration of policy that places financial services at the heart of the national economic blueprint.

Digital transformation forms a major pillar of the strategy.

The government is investing in fintech infrastructure, blockchain integration, and digital payment systems to modernise financial services and increase their reach.

Regulatory overhauls and infrastructure upgrades are also underway, alongside a targeted effort to build skills across the sector.  

Challenges abound

The partnership between the National Treasury and the Nairobi International Financial Centre Authority (NIFCA) is a cornerstone of this transformation.

NIFCA’s role is to connect Kenya’s financial markets with international capital, streamline regulatory processes, and remove longstanding entry barriers for foreign financial institutions.

This effort is expected to position Nairobi as a viable entry point for global firms seeking to expand across Africa.

However, challenges abound. Kenya’s fight against money laundering continues to face hurdles, particularly from designated non-financial businesses and professions (DNFBPs) such as lawyers, real estate agents, and notaries—many of whom operate in regulatory limbo despite being covered by the Proceeds of Crime and Anti-Money Laundering Act.  

Informal Somali financial networks also pose a significant risk.

These systems, deeply rooted in trust and cultural ties, facilitate swift and largely untraceable cross-border transactions between Kenya and Somalia.

Coupled with trade-based money laundering through fraudulent documentation and invoice manipulation, these networks exploit Kenya’s role as a regional trade hub to obscure illicit financial flows.

Amid these concerns, the government is fast-tracking reforms in the licensing process for financial institutions, making it more efficient and attractive for top-tier global players.

Mbadi emphasised that attracting world-class institutions would not only bring advanced technology and global networks but also elevate the entire sector through knowledge and skills transfer.

Mbadi also introduced a “merit-first” policy for leadership appointments in financial institutions and regulatory agencies.

The new approach mandates that the top candidate recommended by an institution’s board be appointed unless compelling reasons dictate otherwise.