Kenya eyes techno city to boost growth

Kenya’s journey to becoming a middle income country by 2030 has started, and is probably un-stoppable if all plans fall into place.

In September, President Kibaki is set to oversee the ground breaking ceremony marking the first step of the country’s journey into a new technology city.
Konza technology city is already causing ripples internationally and has been termed Africa’s Silicon Savannah, modelled on Silicon Valley in the US.

“The project has already taken off. We put adverts in the local papers and The Economist calling for master builders. Currently, the International Finance Corporation (IFC) is evaluating the master builders and in September we shall be conducting due diligence to be sure everything goes according to plan,” said Information permanent secretary Dr Bitange Ndemo.

The IFC, which is part of the World Bank, commissioned international consultants to look at the master planning of the proposed city, its economic viability and development of detailed development proposal.

If the dream comes true Konza will soon dot skyscrapers, hotels, international schools, a world-class hospital, a financial district, a high-speed mass transport system and integrated infrastructure.

In an interview with Smart Company Mr Ndemo said the multi-billion project would change Kenya’s GDP growth rate in a manner never seen before.

Mr Magero Mumo director, Shared services, Directorate of E-government said the Konza technopolis is a flagship project in the Vision 2030 masterplan that aims to see Kenya become a middle income country in 19 years with a double digit GDP growth.

He said already the government is negotiating with the private sector to craft the best financial model.

“This is the first fully planned city in Africa. There are opportunities to invest in real estate, in technology, in provision of services like health, in conference tourism and the hotel industry,” said Mr Magero adding that key corporations have expressed interest despite the global financial uncertainties that tend to discourage investment.

“Of course markets globally including the US, Europe and Asia are experiencing some turbulence. Locally, we are having high inflation rates and food insecurity but these are not permanent conditions and since the Konza City is a long term project of over 10 years there is appetite for real estate sector,” said Mr Magero.

He added, “this is a well thought project and there is commitment to the highest level in government. What the government is formulating is a business and financial model; a partnership between the government and the private sector.”

“We are not going to ask for money from the government. We are going to ask the government to own the science park, business processing and outsourcing (BPO) park and the convention centre,” said Mr Ndemo.

An initial land use plan envisions phased development of over 20 years with BPO park taking up 23 per cent of the planned six million square metres of the site.

A special economic zone is planned for parts of the site to enhance competitiveness and provide a one-stop-shop for businesses.

The new city will be under Konza Technology City Authority, a new parastatal to be created to ensure continuity of the project and non-interference by politicians.

To ensure the grand project becomes a success, extensive plans have been laid that incorporate the private sector building and entering into tenancy agreements to recover expenses.

Already international corporates have shown interest in participating in the project and their understanding is that the government will play a facilitator role of ensuring key infrastructure like roads, water and sanitation facilities serving the new city meet global standards.

“We are not taking any chances in this project. We are consulting with the bankers…we need a local underwriter and the government should guarantee a certain level of tenancy so that developers are assured of return on investment instead of having to look for tenants from scratch,” said the Information PS.

Unveiling the master plan for phase one of the over $10 billion (Sh800 billion) project last week Mr Ndemo, said topographical work is ongoing.

Phase one will include a science and technology park spearheaded by the Ministry of Science and Technology, a business processing and outsourcing, world class hotels, a stadium and other social amenities typical of a city.