NAIROBI, Kenya, July 15 – Concerns over Kenya’s unpredictable tax policies could undermine the country’s ambition to attract $5 billion (Sh646 billion) in investments through the Nairobi International Financial Centre (NIFC) by 2030, as investors continue to demand greater policy certainty.
NIFC Chief Executive Officer Daniel Mainda said stable and predictable tax and regulatory frameworks will be critical if Kenya is to position itself as a leading regional financial hub.
“Policy credibility and stable frameworks” are essential for attracting long-term investment, Mainda said, noting that the NIFC is engaging the National Treasury on creating a more predictable business environment.
Despite offering incentives such as 100 percent foreign ownership, unrestricted profit repatriation and a 15 percent corporate tax rate for 10 years for qualifying sectors including fintech and green finance, concerns over frequent tax changes continue to weigh on investor confidence.
Mainda said the NIFC is working with financial sector regulators to broaden Kenya’s capital markets and attract more global investors.
“The centre is working with CMA and NSE to set up a carbon exchange for carbon credit trading,” he said, adding that the centre is prioritising investment in financial services, technology and virtual assets.
He revealed that about 50 global firms are awaiting certification under the NIFC framework, which is expected to strengthen Nairobi’s position as a regional financial centre.
Business groups have repeatedly argued that while tax incentives are important, policy predictability is equally critical in attracting foreign direct investment and encouraging long-term capital commitments.
The NIFC was established to position Kenya as a gateway for international financial services by attracting investment in sectors such as fintech, sustainable finance and capital markets.
Officials say achieving the US$5 billion investment target will depend not only on competitive incentives but also on a stable tax and regulatory environment that gives investors confidence to commit capital over the long term.
