Tanzania's money firm, Nala, seeks to invest Ksh633.3 million in Kenya after it picked Kenya to host its international office.
On Friday, February 24, Principal Secretary for Diaspora Affairs, Roseline Njogu, represented the government at the event where Nala announced plans to launch cross-border payments platform for businesses.
At the same time, President William Ruto launched Taifa Gas in Dongo Kundu. Ruto noted that the entry of Taifa Gas was a game changer as it will reduce the price of cooking gas.
Transparency and Motive
According to foreign affairs expert John Gachie, Ruto sought to create more jobs and reduce unemployment.
However, he called for transparency in the ownership of foreign companies.
"The government is doing well to accommodate investors but should be careful not to invite entrepreneurs with questionable dealings. Since these firms will create jobs, they should not undermine the local industry.
"Further, an integrated energy company in East Africa would take advantage of the economies of scale in the natural gas deposits in the region," he opined.
According to Prof. Israel Kodiaga, a foreign affairs expert too, intra-regional trade should also be encouraged over political motives.
"Reciprocity in region trade is laudable. Just as it is easy for foreigners to invest in Kenya, Kenyans should also have it easy to invest in foreign countries," Prof Kodiaga argued.
"However, the government's motive should not be to “sort out” political opponents. It should not bring in investors to compete with businesses of political rivals with a view of putting them out of business," he added.
Reports also indicated that Ruto was out to improve diplomatic ties with Tanzania President, Suluhu Hassan. The head of state already enjoys a cordial relationship with his Uganda counterpart, Yoweri Museveni.
Tanzanian Fintech Enters Kenya
Benjamin Fernandes, a Tanzanian entrepreneur, is the founder of Nala Money. According to the Paris Fintech Program, Fernandes holds an MBA from Stanford Graduate School of Business and an Executive Education from Harvard Kennedy School of Government.
He also has a Bachelor’s degree from the University of Northwestern – St. Paul with a major in Accounting and a minor in Computer Science.
Nala Money is a cross-border money transfer service founded in April 2018. It aims to reduce the costs of sending money from Europe to East Africa. It is backed by famous Silicon Valley private equity firms Y-Combinator and Accel Partners.
On the other end, Tanzania Gas is managed by billionaire Rostam Azizi. He is a fifth-generation Persian businessman and former Igunga Member of Parliament.
