Konza City is a proposed mixed-use smart city to be built on 5,000 hectares in Kenya. It aims to create 200,000 jobs in IT and related sectors over 20 years. The city will feature a technology park, residential and commercial areas, and world-class infrastructure to support research and business. The Kenyan government has secured land for the project and is working to develop the necessary physical and technological infrastructure to attract investors and businesses. Potential investment opportunities exist in real estate, facilities construction, and supporting services and industries.

1. T HE
G
IN
T YIA UR
C I D
S G’AS
O LI UN
O P YM
N ENR UM
CHY H FOR
TE N B YA
ZAATIO KEN
ONENT TED
K S C
P RE NNE
CO

2. LOCATION OF KONZA CITY IN KENYA

3. E-READINESS: CONNECTIVITY AVAILABLE FOR
KONZA CITY

4. WHY KONZA CITY
 Konza is envisioned to be an exemplar mixed
Project development technology city developed on a
Profile Greenfield site 60 kms from Nairobi on the major
Mombasa Nairobi Highway.
 Phased development over 20 years with the BPO
Park taking up 23% of the planned 6M square feet
of floor space.
 Create 200,000 jobs over in BPO, IT ITES and related
sectors in 20 years.
Economic
Benefits  World class infrastructure and technology to facilitate
research, education and business.
 Kenya becomes a knowledge based economy.
 Mixed urban development and best in class residential and
Social working environment.
Benefits  Enhance local research and development and
entrepreneurship and IT enterprise formation culture.

5. PROPOSED KONZA CITY

6. PROPOSED KONZA CITY CONT.

7. Atibut
tr e Opt 1 -Gid
ion r Opt 2 -Coridor Opt 3-R dia Coridor
ion r ion a l r KONZA CITY
5000 ACRES
(2011 HA)
PLAN
BPO/ITES Technopark 162.00 163.00 0 163.00
area, ha
CBD area, ha 99.20 99.20 99.20
Hospital/ University area, 21.90 21.90 21.90
ha
Residential community, 969.10 947.20 955.80
ha
Water/ Sewage 74.60 74.60 74.60
infrastructure, ha
Strategic reserve 42.00 48.80 25.30
Central park, ha 18.90 36.10 20.40

8. ALLOCATION OF
LAND IN KONZA
CITY
K

9. INVESTMENT OPPORTUNITIES IN KONZA CITY
 Ready-built structures to house BPO and IT Enabled Services
 Commercial office space and Hotels
 Real Estate residential
 Large scale commercial shopping malls
 Recreation and entertainment venues
 Film and Media City
 Financial District Center
 Community support services, including health, clinics, green
space, educational institutions, houses of worship, etc
 University, research centre and convention centre
 Transportation infrastructure
 World class ICT infrastructure
 Utilities, roads and other infrastructure

10. CURRENT STATUS OF PROJECT
 Procured 5,000 Ha of Land
 Operationalized the BPO Directorate to spearhead the project
implementation
 Temporary Fencing of the entire City Completed
 Legal Notice on Establishment of Konza Technology City Development
Authority finalized
 Ground Water Potential Mapping done and Identified 75 sites with 9 viable
sites
 NYS engaged to drill ,equip one borehole and construct Modern Sanitation
Block
 Notice to Plan Issued for zoning around the city covering 10KM
 Park Power Requirement Phases incorporated in the LCPDP for 2012-2032
 Training Needs in BPO/KPO Identified
 Eight forums held in Asia , Europe and America
 Local Marketing Campaign through the Media ongoing

11. CURRENT STATUS OF PROJECT CONT.
 Konza Mark of Identity adopted
 Intention to Plan issued for the 5,000 Ha
 RFP for hiring Master Delivery Partner Consultancy
services finalized
 Expression of Interest (EOI) to procure Master
Delivery Partner Advertised.
 Feasibility Study for construction of 60KM High Speed
Railway line ongoing
 Project Launch tentatively set for the month of August
 Investor’s Conference in May 2012
 Ground breaking in August 2012

12. KONZA CITY INCENTIVES PACKAGE
Group Scheme/Activity Income Tax Withholding Investment Import Duty/ % Stamp % Work %
Rate Tax Deductions VAT Duty Permits Domestic
Reduction Allowed Market
Access
A
ICT Park & ICT 10 year 10 Years 100% after Perpetually 100% 20% 100%
Tower exempt exempt tax holiday exempt reduction
ICT Services 20% there
after
B
Science and 10 year 10 Years 100% on Perpetually 100% 20% 100%
technology park exempt exempt new exempt on reduction
20% there investment all inputs
after after tax
holiday
C
Manufacturing 10 year 10 Years 100% on Perpetually 100% 20% 70% for
and other exempt exempt machinery exempt on reduction logistic
services for 20% there and all input good 50%
export after buildings for non
after end of strategic
holiday goods
D
Incubator 10 year 10 Years 100% on Perpetually 100% 10% 70% for
manufacturing exempt exempt machinery exempt on reduction logistic
and other 20% there and all inputs good 50%
services
after buildings for non
after end of strategic
holiday goods
E
Regional 20% 100% on 100% Perpetually 50% 10% Restricted
headquarters through out dividends deductions exempt on reduction to regional
on building all office affiliates
equipment
furniture
and
telecommu
nication

13. CONT…
Group Scheme/Activity Income Tax Withholding Investment Import % Stamp % Work Permits Allowed
Rate Tax Deductions Duty/VAT Duty
Reduction
F
Zone 10 year 10 Years 100% on Perpetually 100% Class A: for managerial
developer and exempt exempt new exempt on reduction technical & supervisory
operator 20% there investment all inputs cadre 5% of employees
after & buildings in drainage,
after end telecommunication,
of holiday roads, schools, health
clinics, accommodation
industrial go down,
workshops offices, docks,
yards, and related
amenities granted

14. INVESTMENT SUMMARY
Infrastructure development $ 2.1 B
 On-site $ 1.9 B
 Off-site $ 200 M
Site real estate development $ 4.9 B
Total project cost $ 7.0 B
Average expected return - based on real estate market in Kenya:
 12 -15% per annum for lease income
 20% capital gains per annum (straight line)

15. INVESTOR PARTICIPATION APPROACH
 Single Private Master Developer undertakes the master
planning of the entire property under Master Development
Agreement and finances its development directly or through
sub-developers. Government finances backbone infrastructure
fully or partially.
 Government Authority finances backbone infrastructure and
undertakes the master planning of the property, including
attracting developers for specific land uses.
 Government contributes land to an SPV to be established
jointly with private Master Developer. Terms and
responsibilities of each party to be determined.