Nairobi’s Westlands area has for long been described as Kenya’s social and entertainment sector for wealthy citizens and expatriates. Located 3.1 kilometres from Nairobi CBD, Westlands turned from a residential area into a commercial hub and a base for multinational companies.
A multinational company is a firm that operates in two or more countries. Companies that currently have their headquarters in Westlands range from Telecommunication companies like Safaricom, to banks such as Standard Chartered Bank, IT giants Microsoft and luxury vehicle assemblers, BMW.
In a report published in 2017 by real estate investment advisory firm JLL (Jones Lang LaSalle Incorporated ), it was ascertained that decentralised areas are gaining traction as demand shifts from the CBD. This is necessitated by companies searching for more space and better quality accommodation.
Other than Westlands, Upperhill and Gigiri areas are also a favourite for blue-chip companies.
“Multinational companies such as Coca Cola, Standard Chartered Bank, GE and World Bank have all made their corporate address in these prime nodes while older Grade B office space in the CBD remains largely occupied by smaller local corporates,” read the report.
Standard Chartered Bank first set up offices in Kenya in 1911 with two branches only but has since expanded to more than 30 over the past 100 years. Its main headquarters are located in London, England. In Nairobi, the UK firm’s head office is located on Westlands Rd, Chiromo Lane.
Microsoft opened its African office in Nairobi in May 2018. The tech firm is currently located on Ring Road, Parklands. The ICT ministry said that the move would create jobs for thousands of tech experts as well as support youth innovation.
The company’s main headquarters are in Redmond, Washington, USA.
Emirates, the largest airline in the Middle East, set up offices in Ring Road, Westlands. Its main headquarters are in Dubai, UAE.
BASF, a German multinational chemical company and the largest chemical producer in the world, also unveiled its offices in Westlands in mid-2011. The East Africa Hub focuses on Agriculture, Construction, Food Ingredients as well as Home and Personal Care products. Its main headquarters are in Ludwigshafen, Germany.
Why Westlands?
In 2019, high-end office sales in Nairobi grew from 41 per cent due to increased demand for multinationals looking for a base for regional operations. Companies moved from the CBD to evade congestion, high rental prices and poor amenities.
In regards to space, multinational companies prefer stand-alone offices due to limited proximity to businesses like retailer stores that contribute to traffic. Stand-alone offices offer ample parking for their employees unlike in the CBD where clients are inconvenienced with parking fees and limited parking spaces.
The land-use planning and zoning of Westlands by Nairobi City Council has played a huge role in influencing multinationals to set up in the area.
Westlands area has been set aside for residential and commercial use making it easier for companies to set up due to the availability of the market. The premises offer high-quality office space designed to International Standards. Moreover, it is surrounded by high-end estates such as Riverside, Lavington and Kileleshwa which become residential areas for the company employees.
Multinationals set up in Westlands have easy access to the Nairobi CBD, which is about 3 Km away. The area is also well exposed to Chiromo and Westlands Road, giving companies easy access to both public and private transport.
Westlands is also a secure, highly efficient and flexible working environment. Moreover, there is easy access to amenities such as banks, restaurants and residential areas which act as supplementary institutions to the companies.
With the construction of the Nairobi Expressway from Mlolongo to Westlands, the area is likely to attract more investors who will be setting up companies in the area. The 27Km Expressway links Westlands to Jomo Kenyatta International Airport, facilitating easier and faster transportation in the area.
