Fresh tax incentives have drawn 25 additional companies to the Nairobi International Financial Centre (NIFC), marking the hub’s most significant growth since the initiative was first proposed in 2014.
NIFC chief executive Daniel Mainda said the reforms introduced through the Finance Bill 2025 have sparked stronger interest from global financial firms. The new entrants raise the total number of companies at the centre to 28.
According to Mr Mainda, the centre previously hosted only two or three firms before the tax incentives became law. Since their introduction, about 25 more companies have joined the hub. He expects the number to rise to roughly 40 by the end of June, with a longer-term goal of attracting 150 firms before the end of the year.
Beginning in 2025, the Treasury allowed companies operating under the NIFC framework to benefit from a reduced corporate tax rate of 15 percent for the first 10 years and 20 percent for the following decade, provided they invest at least Sh3 billion in Kenya’s economy.
However, the incentive applies only if the company operates as a holding entity and ensures that at least 70 percent of senior management roles are held by Kenyan citizens. Regional headquarters must also ensure that 60 percent of their top management positions are filled by Kenyans.
The reforms also introduced tax relief for start-ups based within the financial hub. Eligible start-ups can pay a corporate tax rate of 15 percent during their first three years of operation and 20 percent for the subsequent four years as part of a broader strategy to attract innovative businesses.
A start-up under this framework refers to a privately owned company registered in Kenya that has existed for less than 10 years and demonstrates strong growth potential, innovation, or a disruptive business model. In Kenya, many start-ups operate in sectors such as fintech, health technology, and agriculture.
Previously, the reduced tax rate was limited to companies investing at least Sh5 billion and applied only during the first 10 years, without any special provisions for start-ups.
When the financial centre officially launched in 2022, it had signed only three companies, including Prudential plc, ARC Ride Kenya, and AirCarbon Exchange. These remained the centre’s only participants for nearly two years.
Mr Mainda did not reveal the identities of the newly registered firms, though he indicated they include financial services companies restructuring into holding firms, fintech enterprises, and private equity funds setting up operations in Kenya.
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Beyond the 25 companies already signed up, the NIFC is also in discussions with about 50 virtual asset firms interested in joining the hub. Their entry will depend on licensing once the Central Bank of Kenya and the Capital Markets Authority release guidelines for crypto registration.
Officials say the arrival of more firms at the centre could boost job creation and increase foreign exchange inflows, strengthening Kenya’s economic growth and resilience. International financial centres typically serve as hubs for global banking, asset management, insurance, and capital markets activities within a regulatory environment aligned with international standards.
