Global corporations are eyeing Nairobi as a suitable location to establish an office to cover the East African region. There is a growing realisation that big companies cannot operate from one sub-Saharan location in South Africa – Nairobi is mentioned as a good second location.
Asoko Insight reports that, according to Global Cities-The 2016 Report by Knight Frank, Nairobi is considered a suitable regional hub. Kenya’s capitol is also on the global watch list of top five fast modernising cities that are attracting new global business.
According James Robert, Chief Economist at Knight Frank, the country is a fast growing centre for Information Technology (IT) and telecom industries in Africa. Output from Information and Communication industries has risen by 30 per cent between 2011 and 2014. The report notes that Kenya is seeing a surge in electronic payments via mobile phone. Kenya’s Economic Survey 2016 Outlook showed that last year mobile telephone subscriptions increased to 37.7 million, resulting to penetration rate of 85.4 per cent.
For 2016, the International Monetary Fund (IMF) is forecasting Kenyan GDP to expand by nearly 7.2 per cent, compared to 2.1 per cent for South Africa and five per cent for Nigeria.
Further reading on asokoinsight.com