'Sleepy no more': Inside Konza's new game plan to attract investors

“When I wake up and see cranes from private developers roaring in Konza, that is the day I’ll know the project has been validated. We are constructing 16 godowns that we hope will be up and running by January. I’ll be proud to say I helped Konza take off, knowing that money will finally circulate in Konza’s economy.”

These were the words of Konza Technopolis Development Authority (KoTDA) chief executive JohnPaul Okwiri in an interview with The Standard.

Konza Technopolis, the government’s flagship project, is being developed as a science park and innovation hub within the country’s largest smart city.

Popularly known as Africa’s ‘Silicon Savannah’, the 5,000-acre master-planned city is designed to establish Kenya as a technology hub and contribute at least two per cent to Kenya’s gross domestic product. This will help transform the country into a middle-income economy.

Initially valued at Sh1.2 trillion, the overall cost of the Vision 2030 project has risen to Sh1.4 trillion due to economic fluctuations.

However, since its inception in 2008, the project has faced delays, largely due to land disputes, which have kept investors away. Okwiri said KoTDA’s role is to provide both physical and non-physical incentives to investors who choose to settle in the city. 

Unlike traditional cities where people settle before infrastructure is developed, Konza’s model prioritised infrastructure. Between 2014 and 2016, planning was finalised, and resource mobilisation began. “That’s when the master plan and zoning guidelines were developed; schools, hospitals, social housing, affordable and high-end housing, and industry zones were all mapped,” said Okwiri.

By 2016, funding was partially secured from the government to build KoTDA’s offices, allowing the team to relocate from Westlands to Konza.

In 2017, the first infrastructure financing agreement was signed through the National Treasury, with funding from Italy. This enabled the completion of Phase One infrastructure last year.

“With infrastructure now complete, we’re onboarding investors. Out of 147 land parcels, over 100 have been allocated,” Okwiri noted.

 “We’re now encouraging and mobilising investors to begin development. The government has done the basic horizontal infrastructure. The vertical development—actual construction—now lies with private investors.”

Among the first movers are Riara University, National Data Centre and the Kenya Advanced Institute of Science and Technology. These developments signal progress in building an ecosystem that will contribute to Kenya’s knowledge economy.

 Horizontal Infrastructure

Okwiri said a 42 kilometre road network built to smart city standards is ready with underlying utilities such as fibre connectivity, power lines, stormwater drainage, wastewater systems and solid waste disposal.

“We also have a water treatment plant, a 66kV power substation, and a solid waste management system where waste is sorted—organic, plastic, paper—at a central collection point,” said Okwiri. However, all this development represents only 1.7 per cent of the total project.

 Change of strategy to spur development

He said investors have been granted 90-year subleases, with 60 per cent of each plot designated for construction and 40 per cent for landscaping.

Earlier this year, Housing Cabinet Secretary Alice Wahome issued an ultimatum for investors to begin development on their allocated plots. Okwiri acknowledged that delays in uptake were partly due to the timelines of horizontal infrastructure development, but also due to investor hesitation.

“Many investors are waiting for each other. One wants to build a school but asks, ‘Where are the children?’ Another wants a commercial building but asks, ‘Where are the customers?’” he said.

To counter this, the project has shifted focus to housing, with a goal of 10,000 units. The first 3,000 units are under construction and expected to be ready by December this year, with the remaining 7,000 to follow after ongoing negotiations.

“There’s already life at Konza. The two universities will be operational soon, and some investors are creating 5,000 jobs by January. Housing is the next big thing. Once it’s in place, other developments will follow naturally,” said Okwiri To support investor needs, Konza is also building godowns and warehousing facilities. “We’re working with the Ministry of Infrastructure to put up godowns. Some investors prefer ready-built spaces they can lease instead of spending capital on new buildings,” he said.

While the project was affected by Covid-19 and global economic shocks like the Russia-Ukraine war, Okwiri remains optimistic:

“Even developed countries went through this phase. The future of the project looks brighter, and with emerging technologies like cryptocurrency, blockchain, and AI, we expect Phases Two and Three to pick up quickly.”

The land question

Since its launch, the project has faced accusations of land grabbing and forced acquisition.

The Konza Ranching and Farming Co-operative Society previously resisted land takeovers, arguing that members had already developed their farms and were never properly engaged by the government. They maintained that no government can forcibly acquire private land without consent.  However, Okwiri refuted any ongoing land disputes linked to the Konza project or KoTDA.

“As we speak, the land is under KoTDA’s title, transferred from the National Treasury. The court cases you’ve heard about relate to how the land was consolidated, not Konza or KoTDA,” he clarified.