The Nairobi International Financial Centre (NIFC) Regulations, 2021, introduce a robust framework to guide financial activities within the Centre, setting the stage for Kenya to become a global financial hub. One pivotal aspect of these regulations is the definition of “qualified activities,” which are integral to the Centre’s vision.
In this article, we delve into the diverse range of qualified activities outlined in the First Schedule of the regulations.
Defining Qualified Activities:
According to regulation 4(1) of the NIFC Regulations, an activity is deemed qualified if it falls within the categories specified in the First Schedule and is conducted by way of business. This dual requirement ensures that only activities with a genuine business orientation and falling within specified sectors are considered qualified.
First Schedule – Qualified Activities:
Part 1 – Financial Service Activities:
Finance and Banking Business: This includes a wide array of financial services such as accepting deposits, banking business, financial business, Islamic banking, electronic and mobile banking.
Investment Banking Business: Encompassing investment finance, project finance, corporate finance, and wholesale finance, this category covers activities like market making.
Insurance Business: Covers insurance and reinsurance business of any kind, whether conducted as principal or as an agent.
Asset Management and Administration: Involves collective investment schemes, fund management, and related activities as principal, agent, or advisory.
Investment Business: Encompasses advising, arranging, managing, dealing in investments as principal or agent, or related activities.
Payment Business: Includes payment services.
Pension Business: Encompasses activities related to retirement benefits schemes and administrations.
Financial Broking and Agency Business: This category covers a range of services, including insurance broking, stock broking, credit broking, and distribution of financial products.
Consumer Credit Business: Involves credit finance, unsecured lending, consumer credit activities, credit information, credit references, and debt counseling.
Custody Business: Encompasses acting as a trustee, financial custodian, and fiduciary business.
Trading, Money Market, and Exchange Business: Involves trading in precious metals, stocks, bonds, and other financial activities, as well as setting up and operating an exchange.
Part 2 – Ancillary Activities
International Legal Services: Legal services on matters governed by laws other than Kenyan law.
Accounting and Actuarial Services: Includes forensic and investigative services.
Financial Technology Business: Encompasses mobile and technology business, blockchain, digital assets, and cryptocurrency.
Factoring and Invoicing Business: Involves invoice discounting.
Climate Business: Includes climate finance, carbon trading, carbon markets, green and blue instruments.
Company Administration: Involves the formation, operation, and administration of companies and related entities, nominee services, directorship services, secretarial services, registered office, and treasury management.
Company Headquarter Activities: Encompasses establishing or operating company headquarters, management offices, treasury operations, and other functions.
Holding Company: Includes parent companies and cell companies.
Operating a Designated Area: Operating a business and commercial area designated as such by the Authority.
Corporate Finance Activities: Encompasses advisory business and management business.
Crowdfunding Activities: Includes online and digital fundraising.
Incubation Activities: Involves operating an incubation hub and a sandbox environment.
Investor Company: Encompasses special purpose vehicles and special purpose acquisition companies.
Joint Venture Company: Includes all forms of collaborative investment entities.
Consulting Company: Involves management consulting, research, and advisory consulting activities.
Conclusion
The qualified activities outlined in the NIFC Regulations, 2021, showcase the Centre’s commitment to fostering a diverse and thriving financial ecosystem.
Covering an extensive range of financial and ancillary services, these regulations provide a comprehensive framework that positions Nairobi as a competitive global financial hub, attracting international businesses and investors to contribute to Kenya’s economic growth.
