The Government has granted approval for the establishment of India EXIM Bank's East Africa Representative Office in Nairobi, a decision made during a Cabinet Meeting on Monday.
The move signifies Kenya's confidence in the global business environment and underscores Nairobi's stature as a regional financial hub.
India EXIM Bank, a financial institution fully owned by the Government of India, has played a significant role in supporting Kenya's development projects in various sectors, including energy, textile and apparel, agriculture, and small and medium-scale enterprises.
"In the short-term, the Bank will create employment opportunities for Kenyans and deepen their skills in the sector. In the long-term, collaboration between Kenya and the Bank will support national development priorities," states the press release from the Office of the Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs, dated Tuesday, November 28th, 2023.
The decision to establish the bank's operations in Nairobi is a testament to the competitive edge and confidence in Kenya.
The move is expected to contribute not only to the immediate employment opportunities for Kenyans but also to long-term collaborations that align with Kenya's national development goals.
India EXIM Bank, with a mission to provide concessional lines of credit to developing countries, will enhance its physical presence in Nairobi, fostering closer interaction with Kenya and other regional countries.
The move is anticipated to strengthen financial cooperation between India and African nations, particularly Kenya.
"The process of industrial development in India promoted through the import substitution strategy provided an impetus to the growth of a large and diversified industrial base, and a number of emerging industrial sub-sectors proved to be internationally competitive, thus giving the financial institution the muscle to spread its wings globally," the statement further reads.
With a history of aiding businesses in identifying and achieving their international goals, India EXIM Bank's expansion into Kenya aligns with its mission to support economic growth beyond domestic borders.
As Kenya emerges as its new destination, the bank's presence is poised to deepen financial ties and enhance collaboration between India and African countries.
The establishment of India EXIM Bank's office in Nairobi is scheduled to commence operations from December 2023, opening a new chapter in financial cooperation between India and Kenya.