Nairobi – The New Home of the Multinationals?

Kenya is on the Indian Ocean with Ethiopia separating it from the Gulf of Aden and the Red Sea. It benefits from membership of the East Africa Community that includes Burundi, Rwanda, Tanzania and Uganda. The capital city Nairobi is in the interior heartland.

It is the twelfth largest city on the continent and one of its most prominent political and financial centers. It hosts over 100 multinationals and thousands of Kenyan business headquarters. Corporates are housed in modern skyscrapers. Floor space is in demand and several construction projects are ongoing.

The wealthier Nairobi suburbs south and west of the city are well supplied with western restaurants. Expatriate children attend international schools typically following the American curriculum. Kenya is fast becoming a land of promise for multinational investors.

By 2011 Pfizer, PricewaterhouseCoopers and Posterscope had already made their home there, with the likes of Barclays, Google, IBM, Procter & Gamble and Nokia/Siemens following shortly.

Several factors stand to Kenya’s advantage. 23% of the East African Community is middle class. Kenya is driving a highway into Ethiopia to tap a potential market of 240 million in total. More than 25 million Kenyans connect to mobile telecommunications services representing 58% of the population.

Nairobi developments include cables for fast internet and new highways to ease congestion. The city is establishing a name for technology talent. Kenya stands poised to trade internationally and in the hinterland. The region is moving into a period of civil and political peace.

By October 2012 more MNCs had arrived including General Electric, Google, IBM, Visa International, Nestle, Pepsi, World Bank’s International Finance Corporation and South Africa’s First International Bank. According to a World Bank spokesperson the nation is continuing to attract multinational companies, thanks to … a developing education system and better macroeconomic policies.

On 11 February 2013 Toyota Tsusho Corporation established a regional headquarters to search for opportunities in the agri, energy, health and oil sectors. Its hopes to create access to countries surrounding the East Africa Community and new business opportunities in those countries”.

Analysts predict that Kenya will continue with it’s rapid growth. It is already the economic engine of East Africa with exciting opportunities in South Sudan, Uganda and Rwanda. A burgeoning middle class has potential for fast moving consumer goods. Abundant gas, oil and mineral reserves remain largely untapped.

Vodafone is following its customers and opening a regional hub in Nairobi.

REFERENCES

http://www.nation.co.ke/business/news/Multinationals-in-Nairobi/-/1006/1532544/-/nk77ixz/-/index.html https://www.cia.gov/library/publications/the-world-factbook/geos/ke.html

http://allafrica.com/stories/201107261672.html

http://www.cck.go.ke/news/2011/mobile_subscribers.html

http://www.nairaland.com/751883/nairobi-kenya-africa-new-hq

http://www.eac.int/

http://en.wikipedia.org/wiki/List_of_companies_and_organizations_based_in_Nairobi

http://www.howwemadeitinafrica.com/discussing-kenyas-business-environment-and-the-upcoming-elections/24034/

http://www.businessdailyafrica.com/Corporate-News/-Toyota-Tsusho-sets-up-regional-headquarters-in-Nairobi/-/539550/1691750/-/9k115b/-/index.html