The Communications Authority (CA) wants to create a brand new license category just for data centers, and it’s now asking the public to weigh in before making it official.
Right now, data centers that offer colocation services (renting out server space to other companies) are lumped into a broader category called Network Facilities Provider-Tier 2.
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The CA thinks that’s too generic for an industry that’s growing fast and needs its own rules. So it has proposed pulling colocation data centers out of that category and giving them a standalone license, one that would also cover related support services.
The CA says the goal is threefold: give the industry more regulatory clarity, improve how it monitors data center operations, and support the investment pouring into digital infrastructure. It also wants Kenya’s rules to look more like what other comparable countries are already doing.
This isn’t happening in a vacuum. Kenya has been positioning itself as a hub for cloud computing and AI, and the money reflects that ambition.
Last month, Greek firm Amaco Energy Group announced a $1.5 billion AI data center in Mombasa that plans to generate its own power and cooling rather than leaning on the national grid.
Now the CA has thrown the proposal open for public comment. Anyone with a stake in this, operators, investors, tech companies, or just interested members of the public, has 30 days from when the notice was published to send in their views.
There are several ways to weigh in. Comments can be submitted electronically through an online form, sent via the authority’s dedicated data center email address, or delivered by post or by hand to the Director General’s office in Nairobi.
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The proposal is still just that, a proposal. Nothing changes yet. The CA is gathering feedback before deciding how to move forward, and this consultation window is the chance for the industry and the public to shape what the final rules actually look like.
Once the comment period closes, the CA will review the submissions and decide whether to proceed with the new licensing framework, adjust it, or rethink parts of it based on what stakeholders say.
