Kenya needs Konza tech city in plans to spur economic growth

Opinion and Analysis

Kenya Power lays power cables in Konza Techno City project site. PHOTO | FILE 

By REUBEN MUTISO

Following the commencement of the horizontal infrastructure at the proposed Konza Techno City site and investors having been asked to express interest to invest in the city, there has been vigorous debate about the need for project.

The dialogue should be encouraged. I believe that Konza City is critical to the future of the country — Kenya needs Konza to play a critical role in its transformation towards technology and knowledge-based economy and to be able to compete in the region and globally.

It’s a key Vision 2030 project and will contribute significantly to making Kenya the middle-income status goal.

Konza City is envisioned as a sustainable, world-class technology hub and a major economic driver for the nation, with a vibrant mix of businesses, workers, residents, and urban amenities.

Just in the first phase, which encompasses about 400 acres of the 5,000-acre project, the Konza Technopolis Development Authority (KoTDA) has invited investors to formally express interest in the mixed-use community which will include commercial, residential, retail, public amenities, and a hotel, that would create 17,000 jobs and house 30,000 residents.

By the year 2020, Phase 1 is anticipated to add more than Sh90 billion to the economy, and or about two per cent of the gross domestic product.

When fully built, we project that Konza will be a thriving city with superb amenities and world-class infrastructure supporting about 200,000 direct jobs and housing more than 260,000 residents.

Konza will attract businesses, small and large as well as national and international. It will support and educate new and existing techpreneurs.

While Nairobi will remain a regional business, innovation and creativity hub, the Konza city, with its reliable infrastructure and connectivity, will foster a technology ecosystem that will bring together a diverse population to offer solutions to our local problems.

I believe such solutions will be replicable to address global challenges, creating a foundation for Kenya’s startups and SMEs to grow into multinationals.

Innovative technologies incubated in research labs and businesses in Konza City can focus on key sectors of the economy, among them, agriculture, tourism, ICT and manufacturing.

Innovative technologies can be developed here that support farmers, for example, intelligent automation in agriculture and introduction of efficient processes that will increase revenues.

No doubt there are challenges to developing and sustaining new cities and technology hubs outside of central business districts. Thoughtful planning and collaboration between business, government, and educational institutions are critical to its implementation.

There are many thriving technology hubs of different sizes and scales that have catalysed economic development and are successful global precedents for Konza to borrow a leaf from, for example, the Research Triangle Park in North Carolina, where political and civic leaders along with heads of educational institutions came together to plan and implement a 7,000-acre research and technology park in the 1950s, which now employs about 40,000 people, or the Internet City in Dubai that has attracted 4,500 companies, and employs 20,000 workers.

A large concentration of private sector tech firms, universities, and research facilities is bound to encourage new investment of venture capital and nurture innovation leading to increased creativity and risk-taking by entrepreneurs.

With the synergy of universities collaborating with tech companies, Kenya would be able to produce tech graduates with the skills demanded by the world’s top companies.

sustainable ecosystem where development can occur without leaving a negative footprint on the environment.

The master plan calls for a truly mixed-use, high density and sustainable community. Energy saving and green construction methods would be employed, for example, water would be treated on-site and recycled.

Renewable energy sources would be embraced to reduce the city’s pressure on the national grid as well as reduce carbon emissions.

All interested investors now have a chance to participate in Konza and expressions of interest for investments and development have been invited which include establishment of schools, hotels, commercial and residential buildings.

Local and foreign investors as well as individuals can also propose any other ventures of their choice which are in line with the city’s master plan.

Groups that meet the threshold of the investments may also submit their proposals as chamas (business clubs) or saccos.

While the benefits of Konza City are clear, the journey will continue experiencing challenges which are a surmountable. The KoTDA is ready to address these challenges with the help of the government and private sector.

The Ministry of ICT has greatly supported KoTDA’s efforts and the establishment of the inter-ministerial committee by the presidency has been very instrumental in harnessing resources that would otherwise have been difficult to access.

We are excited to note the progress made so far and the inclusion of Konza as one of the priority areas whose progress is monitored closely by the State agency to ensure delivery on its mandate.

For a Sh940 billion project, Konza Techno City is obviously capital-intensive. It is truly the embodiment of a large-scale public-private partnership project that represents a strategic opportunity to spur the growth of economic activities with a high rate of returns on investment.

An attractive range of infrastructure investment opportunities lies therein in academia, business process outsourcing, construction and energy, among others.  

Dr Mutiso is a director of the board at Konza Technopolis Development Authority. He is a past chairman of the Architectural Association of Kenya (1982) and the current group chairman of Tectura International.

We are on the right track towards the realisation of this grand dream. The benefits of building Konza far outweigh the risks and challenges, real or imagined.

I have no doubt in my mind that Kenya needs the city now. It is a key project that will transform our country towards tech and knowledge economy.