The unrivaled increase of multinationals in Nairobi City has led to high demand for industrial, residential and retail space development. And real estate companies are working hard to fulfill the demand.
According to Britam, which is currently putting final touches to its 31-floor “green” regional hub office block at Upper Hill, Nairobi, by end of 2017, an additional 1.3 million square feet of modern retail space will have been put and occupied in the city.
“Multinationals are scrambling for space in Nairobi to put up their African headquarters,” Britam says a fact that is emboldening the capital city’s name as the gateway to East Africa.
Britam says Nairobi is enjoying international limelight due to its global air connection and expanded infrastructure that favours industrial activity, financial and transport services as well as exploration.
Multinationals with operations in Nairobi include:
- General Electric,
- Visa International,
- Foton Automobiles,
- World Bank’s International Finance Corporation (IFC) and
- South Africa’s FirstRand Bank.
Although American companies still lead the park if multinational in Nairobi, Chinese companies have recently increased their presence to take number two position.
Canada, Germany, India, Norway, Finland and Britain have presence ranging in order in terms of numbers.
According to researchers, Nairobi is favoured by multinationals dealing in telecommunications, banking media, research labs, chemicals, courier, civil aviation, conglomerates, NGOs, business advisory and financial services.
Factors Influencing Choice of Nairobi
The researchers say key factors influencing the choice of Nairobi include:
- market potentiality (83 per cent),
- availability of labour (69 per cent),
- economic status of Kenya (67 per cent),
- political stability (57 per cent,
- location (34 per cent)