Kenya has secured Ksh30.8 billion in the form of a loan for the development of the Konza Digital Media City.
This deal was finalised on the sidelines of the Korea-Africa Summit, marking a significant milestone in the collaboration between Kenya and Korea Exim Bank, Tuesday, June 4.
The funding agreement, 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, amounts to $238 million (about Ksh30.8 billion).
This substantial investment aims to transform Konza Technopolis into a cutting-edge hub for film and creative industries.
Announced in 2008, the Konza Technopolis project, envisioned as a beacon of Kenya's technological future, was originally slated for completion by 2019.
However, delays have plagued the project, pushing it far behind schedule. As of January 2019, the estimated cost had ballooned to Ksh1.2 trillion.
Despite these setbacks, optimism remains high. 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 centre, among other initiatives.
The Konza Digital Media City is set to embody eco-friendly principles, featuring double-glazed windows, solar panels, smart lighting, sensored toilet flushes, and rainwater collection systems. These sustainable features align with the global shift towards green building practices and points to Kenya's commitment to environmental stewardship.
Promotional materials from 2008 projected that Konza City would contribute $1.3 billion to Kenya's GDP by 2020. Although these targets have not been met, the government remains committed to the project's completion.
Last year, nearly half of the budget allocated to the Ministry of ICT was spent on advancing Konza Technopolis, as the government races to complete the project.
Key allocations for the ICT sector this year total Ksh15.1 billion, with significant portions directed towards Konza City. These include Ksh4.8 billion for the Horizontal Infrastructure Phase I, Ksh1.2 billion for the Konza data centre and smart city facilities, and Ksh5.7 billion for the construction of the Kenya Advanced Institute of Science and Technology (KAIST) at Konza Technopolis.
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.
In March, South Korea further committed to financing three additional projects within the SEZ at Konza Technopolis. This ongoing support is part of the robust partnership between Kenya and South Korea, aimed at fostering economic development through innovative infrastructure and urban development projects.
The EIPP, an evolution of Korea's Knowledge Sharing Program (KSP), provides comprehensive development consultation, including pre-feasibility and full feasibility studies for infrastructure and urban development projects. This initiative is designed to foster mutually beneficial relationships and support economic development in partner countries.
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.
President William Ruto is in South Korea for the Korea-Africa summit.
