Only seven Kenyan firms have so far submitted plans to invest in the $37 billion Konza Technology City, sparking fears among experts about a lack of local interest in the project.
The 5 000-acre project, dubbed “Silicon Savannah”, is to form part of the Kenyan government's 2030 plan to create jobs and boost the economy. Konza is to be built 64km from Nairobi and will feature a science park, university campus, international business district, and commercial and residential properties.
Kenyan telecoms operator Safaricom and local software firm Sevenseas are among those that have already submitted investment plans.
But these two applicants are the only companies from Kenya's technology sector that have applied for space at Konza, as other applicants include the Seventh Day Adventist Church, Kenya's Tea Board and the University of Nairobi.
Only 40% of the initial phase of the 1 500-acre site has been taken up by local investors. And a lack of investment from local tech firms and other Kenyan companies in general has experts worried about whether the project will be a success.
"The lack of interest stems from a much bigger problem,” says Kennedy Kachwanya, a tech entrepreneur. “There are doubts about what the government is able to achieve, and whether it's a white elephant that is going to fail.”
Concerns about international companies dominating the tech city as a result of low interest from Kenyan companies are also plaguing the Konza project.
Mbugua Njihia, a founding member of the Mobile Marketing Association East Africa, has said Konza could create jobs, but that, ultimately, its revenue could be repatriated.
International tech firms have helped Kenya's ICT sector grow rapidly as companies such as Nokia and Qualcomm have set up regional offices in the country's capital, Nairobi. The country was also the first to introduce M-pesa, the popular mobile money transfer system, which is available in countries across Africa, including SA and Nigeria.
Karanja Macharia, co-founder and chief executive of Mobile East Africa, has argued Kenya should focus on producing its own tech players first, before it builds a “stadium”.
Despite concerns over a lack of local interest and international companies dominating the city, the project has received praise, as Njihia says it brings much-needed investment to Kenya.
“In the larger scheme of things, the 'technopolis' will have a spill-over effect of attracting investors beyond those in construction, transport and energy, and the onus is on the 'techpreneur' to be ready to ride this wave of capital and exposure.”
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