Konza secures Sh30.8Bn funding from South Korea
Kenya has secured Kes30.8 billion from South Korea to finance the set up of Konza Tech City, as part of growing investment collaboration between Nairobi and Seoul.
The deal, which was signed on the sidelines of the Korea-Africa Summit was signed by Korea Exim Bank’s Executive Director and Board Member Hwang Kiyeon, alongside Dr. Abraham Korir, Principal Secretary of Foreign Affairs in Kenya’s Ministry of Foreign and Diaspora Affairs.
“The release of $485 million concessional development funding, including $238 million for the Konza Digital Media City Project, will bolster our digital ecosystem, expanding opportunities for our youth in the creative economy,” President William Ruto noted on X.
This investment seeks to transform Konza Technopolis, which was started in 2008 with a target completion date of 2019, as a beacon of Kenya’s technological future, into a cutting-edge hub for the film and creative industries.
Konza City was projected to contribute $1.3 billion to Kenya’s GDP by 2020. However, delays have plagued the project, pushing it far behind schedule with the estimated cost having ballooned to Kes1.2 trillion, as of January 2019.
The recent funding is part of a broader Economic Innovation Partnership Program (EIPP), which has already seen significant investments in smart farms, incubation complexes, and renewable energy initiatives within the Konza Special Economic Zone (SEZ). This is the third EIPP project, following the successful implementation of the Smart City Masterplan and integrated control center, among other initiatives.
Last year, nearly half of the budget allocated to the Ministry of ICT was spent on advancing Konza Technopolis. Key allocations for the ICT sector this year total Kes15.1 billion, with significant portions directed towards Konza City. These include Kes4.8 billion for the Horizontal Infrastructure Phase I, Kes1.2 billion for the Konza data center and smart city facilities, and Kes5.7 billion for the construction of the Kenya Advanced Institute of Science and Technology (KAIST) at Konza Technopolis.
Read also: Korea scales up investment in Konza smart city
Additional funds have been earmarked for the maintenance and rehabilitation of the National Optic Fibre Backbone Phase II Expansion Cable, the construction of Konza Complex Phase 1B, and the Last Mile County Connectivity Network.
The Konza Digital Media City is set to embody sustainable eco-friendly principles like double-glazed windows, solar panels, smart lighting, sensor-equipped toilets, and rainwater collection systems which align with the global shift towards green building practices and demonstrate Kenya’s commitment to environmental stewardship.
With the latest influx of funds and continued international support, the developers of Konza Technopolis are undeterred by past delays. The project is poised to become a flagship of Kenya’s ICT sector, showcasing the nation’s potential to become a technological powerhouse in Africa.
In March, South Korea further committed to financing three additional projects within the SEZ at Konza Technopolis as part of the robust partnership between Kenya and South Korea, aimed at fostering economic development through innovative infrastructure and urban development projects.
