As global trade tensions persist, fresh investment partnerships offer a glimmer of hope, none more so than the newly launched collaboration between the Nairobi Securities Exchange (NSE) and the UK government’s MOBILIST program.
Announced during a pivotal UK trade visit to Nairobi, this partnership promises to unlock private capital and stimulate growth in Kenya’s climate and development sectors.
The UK’s Trade Lead Visits Nairobi
His Majesty’s Trade Commissioner for Africa, John Humphrey, spearheaded the UK delegation’s visit to Nairobi. During his three-day stop in Kenya, Humphrey underscored the importance of this new investment partnership, which forms part of the wider UK-Kenya Strategic Partnership.
The Strategic Partnership, a five-year initiative, aims to deliver long-term economic benefits to both nations without burdening Kenya with unsustainable debt.
MOBILIST
At the heart of this initiative is MOBILIST, a flagship UK development program designed to help emerging markets like Kenya attract institutional capital.
MOBILIST focuses on supporting companies that align with the United Nations Sustainable Development Goals (SDGs), particularly those hampered by barriers to public market listings.
In Humphrey’s words,
“Mobilising investment solutions in Kenya is vital to economic growth, as they provide a platform for Kenyan businesses to raise the capital they need to expand their operations… and tackle climate change.”
His visit reaffirms the UK’s commitment to fostering growth through sustainable development, further strengthening its ties with Kenya.
Building Financial Strength through Partnerships
The MOBILIST program, which has forged similar partnerships with exchanges in Nigeria and South Africa, is now expanding its reach in Kenya.
Working alongside the NSE, the program will focus on creating new investment products that not only drive economic growth but also align with the SDGs, enabling firms to access vital capital for development and climate-focused projects.
Nairobi Securities Exchange CEO Frank Mwiti remarked,
“The strategic partnership between the NSE and MOBILIST aligns with our focus on mobilising capital to sectors with significant capital needs, especially sustainable development.”
His statement reflects the growing role that African exchanges, like the NSE, are playing in enabling private sector capital to flow towards transformative, high-impact projects.
How the Partnership Benefits Kenya
This partnership arrives at a crucial time for Kenya, as the country seeks to drive climate-resilient development while addressing critical infrastructure needs. Several aspects of this collaboration are particularly promising for the Kenyan economy:
- Boosting Climate Projects: By funnelling private sector capital into climate projects, the partnership aligns with Kenya’s ambitions to lead Africa’s green industrial revolution. President William Ruto’s Africa Green Industrialisation Initiative (AGII) will likely benefit from these investments.
- New Investment Products: The introduction of new listed investment products will widen the appeal of Kenya’s capital markets to both domestic and international investors.
- Private Sector Growth: By addressing capital needs in key industries, the collaboration will help Kenyan firms expand, creating jobs and stimulating economic growth.
UK-Kenya Strategic Partnership in Action
The partnership reflects the broader UK-Kenya Strategic Partnership, which focuses on sustainable economic development, job creation, and climate resilience.
It is one of several recent UK-led initiatives aimed at strengthening ties with African nations by supporting long-term investments that lead to mutual growth.
The British government is particularly focused on removing trade barriers that prevent immediate economic benefits for Kenya. For example, as part of this trade push, the UK recently suspended an 8% export tariff for cut flowers entering the UK, benefiting major Kenyan exporters like Flamingo Flowers.
Humphrey’s visit highlights the diverse nature of the UK-Kenya relationship, with both governments working together to tackle development challenges while boosting trade.
His visit also saw the launch of the British Business Breakfast Club, an initiative designed to hear directly from British-Kenyan enterprises about their concerns and opportunities.
Focal Elements of the UK-Kenya Investment Partnership
Element |
Description |
|---|---|
| Nairobi Securities Exchange | Partnering with the MOBILIST program to list new investment products for climate and development. |
| UK’s MOBILIST Program | UK-backed initiative supporting companies that contribute to the SDGs, focusing on capital markets. |
| Private Capital Mobilisation | Aimed at driving investment into sustainable development and climate-related projects in Kenya. |
| Strategic Partnership | Five-year UK-Kenya agreement focused on mutual economic growth without unsustainable debt for Kenya. |
The Road Ahead
Looking forward, the UK-Kenya investment partnership has the potential to not only transform Kenya’s capital markets but also advance the country’s green economy ambitions.
Both governments seem committed to driving sustainable, long-term change through capital mobilisation and strategic cooperation.
With the UK serving as a key player in Kenya’s growth story, the ripple effects of this partnership will likely extend beyond Kenya, influencing broader UK-African trade relations.
In a world increasingly focused on sustainability, this partnership represents a significant step toward achieving the shared goals of economic development and climate resilience.
As Humphrey aptly put it,
“We go far when we go together – I am delighted to be back in Kenya to deliver our mutually beneficial partnership which is rooted in respect.”
Sources: THX News & British High Commission Nairobi.
