Nairobi is rapidly cementing its position as a vital global hub for international diplomacy and humanitarian efforts, with the United Nations actively relocating several key agency headquarters from New York to the Kenyan capital. This shift is set to profoundly impact Nairobi’s economic, social, and diplomatic landscape.
Earlier this year, UN Secretary-General António Guterres announced plans to move at least three agency headquarters. They include the United Nations Children’s Fund (UNICEF), the United Nations Population Fund (UNFPA), and the UN Entity for Gender Equality and the Empowerment of Women (UN Women), to Nairobi by the end of 2026. These new additions will join the existing UN Environment Programme (UNEP) and UN-Habitat, elevating Nairobi to one of only four cities worldwide to host multiple UN headquarters, alongside New York, Geneva, and Vienna.
The decision to expand Nairobi’s UN presence is rooted in several compelling factors. Firstly, Nairobi offers significantly lower operational costs compared to traditional Western hubs like New York and Geneva. Reports indicate that Nairobi provides a 25% saving on operational costs for local hires and 13% for international staff, a crucial consideration as the UN implements its UN@80 reform agenda aimed at financial diversification and operational localization.
Secondly, the relocation aligns with the UN’s strategic goal of being closer to the communities it serves. A significant portion of the UN’s humanitarian work is concentrated in Africa, and having key agencies headquartered in Nairobi will enable faster responses to regional crises and development challenges. This move is also seen by some as a step towards decolonizing global governance by shifting decision-making closer to the ground where policies are implemented.
Nairobi’s existing infrastructure, strong regional connectivity, and political stability also played a significant role in its selection. The United Nations complex in Gigiri is undergoing extensive infrastructure improvements, including the construction of a new 9,000-seat assembly hall and 30 new conference rooms, signifying a substantial investment in the city’s capacity to host global events.
The influx of these agencies is expected to bring at least 800 additional UN staff members, with the total impact, including families and support workers, potentially reaching up to 20,000 people. This will provide a substantial boost to Nairobi’s economy, particularly in sectors such as real estate, hospitality, healthcare, and education. Diplomatic neighborhoods like Runda, Gigiri, and Muthaiga are already witnessing increased demand for high-end, secure housing, and developers are actively exploring opportunities to cater to this new demographic.
Beyond the economic ripple effects, the relocation further solidifies Kenya’s diplomatic standing on the global stage. It amplifies Kenya’s voice in international development and diplomacy, repositioning the country as a leader in shaping conversations around critical issues like children’s rights, gender equality, and reproductive health. The expanded UN presence is also anticipated to create new job opportunities for local professionals in fields ranging from logistics and ICT to policy development and research.
However, the transition is not without its challenges. Concerns have been raised by some staff members regarding the relocation from New York, with reports of very low morale among those being asked to move. Issues related to work-life balance, access to specialized services, and even concerns over the local socio-political context have been voiced. Nairobi will need to proactively address these concerns to ensure a smooth transition and retention of talent.
Kenyans are also worried that the influx of highly paid UN foreign staff will distort the rent market in Nairobi. They are known to pay high rental prices for basic houses and this will price out the available houses to locals in Gigiri and its environs.