Konza Technopolis is in need of KES 140 billion and is considering various financing strategies, including green bonds, public-private partnerships (PPPs), and collaborations with partners.
In a media briefing today at Kenya’s smart city, it was confirmed that about “100% of Phase 1 is complete.” The funds raised will be used to work on Phase 2.
Phase 1 has majorly involved the development of ground/horizontal infrastructure. Konza City has, since inception, spent USD 80 million on the Kenya Advanced Institute of Science and Technology (KAIST). This was funded by a loan from the South Korean government.
In addition to KAIST, Konza hosts the Open University of Kenya (OUK). The newly chartered university is currently in session and has 2000 students.
Completed Konza Technopolis horizontal infrastructure cost USD 391 million. The 170-hectare phase of the project was funded after the government of Kenya signed a financing agreement with UniCredit SpA of Italy back in 2017.
The Chinese EXIM bank has funded smart cities in Konza Phase 1 to a tune of USD 170 million. Construction of office blocks and conference facilities in the smart city has cost USD 30 million, which was raised by the Kenyan government.
Konza Data Center
Konza hosts a tier 3-certified data center. The data center was constructed by Huawei and funded by the Chinese. However, it is currently managed locally. Past reports indicated that the data center has a capacity of 1.6 petabytes.
The management of the Konza launched an ESG report last year, indicating commitment to run a green city. There is an installed waste management plant. A water treatment plant is also in place with Konza, promising to recycle up to 70% of the water used in the city.
Moreover, Konza has set aside 33 acres of land for the construction of a solar energy facility.
Even as Phase 1 is not yet done, Phase 2 is already running. This phase is scheduled to be done by 2030 and will involve “vertical infrastructure.”
