Konza City, the Real Work Begins

Konza city will officially be launched towards the end of the month by the president. This was announced by the PS of Information and Communications during a breakfast meeting this morning at the Laico Regency Hotel. Ground work however, has already started with a number of ministries having already received funds. The roads ministry for example, has been funded for the railway that will pass by the city. The ministry of water has received money from African Development Bank and treasury, and is setting up boreholes for initial supply of water.

Konza, dubbed Africa’s silicon savannah, will mainly be a business process outsourcing project boasting 5000 acres of land. There has been collaboration with international bodies such as HR&A and IFC (International Finance Corporation) over the past 3 years. The latter is an American-based international financial institution that offers support to the private sector in developing countries. HR&A provides advice on complex project developments that involve a mix of functions. In its portfolio of achievements are Research Triangle Park in North Carolina and the Botswana Innovation hub.

According to them, the size of Konza city is comparable to other sustainable cities such as Manhattan Island and Los Angeles. It will be set up to be a walking city where one can literally walk to work, school, or hospital. It will portray the idea of pedestrians, as opposed to cars which is what most cities depict.

What is needed to make Konza a reality?

Save for a change in attitude about making it a reality, 3 key areas were addressed for this question; Governance, Incentives and Infrastructure. Governance will require a body to be set up as the authority to overlook the smooth running of the project. The incentives were broken down to two main features namely financial incentives, such as redemption/reduction of personal income tax, and regulatory policies.

The infrastructure costs have been broken down as follows:

  • On-site costs: These costs refer to the expenditure incurred at the place of construction and include landscaping and excavation among others. According to the presentation this morning, it will range from US $370 Million – $500 Million, roughly KES 31.7 Billion to KES 42.8 Billion in our proud currency. Public investment will account for $180-$260 Million, from KES 15.4-KES22.3 billion.
  • Off-site costs: These are the expenditures incurred away from the project site in making the resources available.  Examples include bringing power and sewer connections to the area. This portion will be covered by Government of Kenya.

Each panel to be used in the construction will have a barcode that will be recorded on an iPhone upon release and will make tracking them easy. This will reduce loss via vandalism as had been the case when setting up fiber optic cables and constructing roads.

By February 2013, a sales pavilion and a memorandum of understanding with anchor tenants and developers will have been established. Phase 1 will be constructed on 260 acres of land and the projected revenue from its completion is estimated at US $78 Million (KES 6.7 Billion) to $95 Million (KES 8.1 Billion). Speaking at the breakfast meeting, the minister for education Hon. Mutula Kilonzo noted that the spatial plan for the project should be made available to the public as quickly as possible. The move will certainly lessen the dent should slums arise around the area in the course of construction.

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