Whether or not you purchase a generic top level domain name or a country
specific domain name, there is no technical constraint restricting where in the world
the corresponding website is hosted. For example, someone who is
eligible to purchase a ".ca" domain
(Canada) can physically host the website in the United States or Europe. Similarly, a
".com" domain could be hosted in South Africa. The only limiting
factor is the ability of the web hosting company to support the ccTLD domain.
Many people elect to host their country domains in other countries.
In some cases this is done for cost or service quality reasons.
Sometimes, it is done to keep the
physical website located near the people who visit the site or
on the Internet "backbone". For example a business in Kenya
that promotes their safari tours to consumers in the United States from a site called "safari.ke"
might want to
host that site in the United States rather than in Kenya. This can
significantly improve response time and reduce downtime.