Infrastructure

Concerns as Konza City Struggles to Attract Investors

Investors are raising concerns over the lack of a solid roadmap to actualise the project.

Updated on

June 25, 2019

Artist’s impression of Konza Technology City in Malili, Machakos. PHOTO | COURTESY

Concerns are mounting about the progress of Konza City in Machakos, 60km southeast of Nairobi, with observers lamenting the project’s failure to attract serious investors.

The “Silicon Savannah” project has not made any significant progress since its groundbreaking in January 2013 save for the construction of a building meant to host the headquarters of the Konza Technopolis Development Authority (KoTDA).

Interestingly, KoTDA – which was originally supposed to shift to Konza in 2017 – is still operating from a rented office in Westlands, Nairobi. This happens even as the State continues to make numerous appeals to the private sector to set up shops in the smart city.

Although the project has been allocated Sh12 billion for the 2019/2020 financial year, investors are raising concerns over the lack of a solid roadmap to actualise the development.

“We still haven’t touched the nerve with Konza and right now it sounds like the same old government thinking,” says Kenya Private Sector Alliance Chairman Nick Nesbitt.

“So far, the conversation is still very much on infrastructure but there is little talk about what the infrastructure is going to achieve, and it seems like we are appealing for the private sector to come but not telling them why.”

Despite Sh10 billion invested in Konza since the 2015/2016 financial year, KoTDA has not completed basic infrastructure like roads, water, and sewer lines. The slow progress has discouraged even the most enthusiastic investors.

“It has taken too long and I think people have moved on,” Josiah Mugambi, founder of Alba.one, a Nairobi-based software company, who was initially excited by the “Africa Silicon Savanna” project, said in an interview with Reuters.

Interestingly, despite a host of local and international tech giants initially expressing an interest in investing in the proposed city, the business world now appears to have shifted its focus to Rwanda, which is building its tech city.

“Nobody can wait that long for a city to be built. For a tech entrepreneur, they think about where their startup will be two to three years down the line,” said Mr Mugambi.

Kigali Innovation City, which was launched in 2015, has already made remarkable progress – with its completion now slated for next year. The city is designed to host 50,000 people in universities and technology firms on 70 hectares just outside Kigali.

Eko Atlantic City near Lagos, Ghana’s Hope City and an Ethiopian city styled as the real Wakanda after the movie “Black Panther” are the other smart cities competing with Konza.

The government now seems to be positioning Konza as a tourist attraction site, even as it hopes to attract technology investors.

“We are looking at putting up an iconic building at Konza that will be a must-see attraction and pull people to visit. We have also received enquiries about putting up a golf resort and a stadium,” says KoTDA chairman Reuben Mutiso.

The authority proposes to have Konza Technopolis designated as a special economic zone where companies will receive tax rebates for setting up businesses in the smart city.