Pre-development financing agreement signed for Konza Data Centre expansion project in Kenya

en.Wedoany.com Reported - On October 23, the Konza Technopolis Development Authority of Kenya signed a project preparation financing agreement with the Public-Private Partnership Project Facilitation Fund under the Ministry of Finance to advance the Konza National Data Centre cloud computing expansion and smart city facilities project. The agreement was signed on behalf of the Development Authority by Chief Executive Officer John Paul Okwiri. The funds will be used for transaction advisory, feasibility assessment and preparation of investment implementation plans, laying the groundwork for the project's subsequent adoption of a public-private partnership model to bring in private investors.

The scope of works supported by this financing includes the expansion of server infrastructure at the existing Konza National Data Centre, enhancement of data storage and processing capacity, expansion of cloud computing services and construction of supporting smart city digital facilities. The expanded system is intended to provide cloud computing resources to government agencies, enterprises and other digital service users, while also supporting artificial intelligence applications and local data hosting needs.

The project was included in the Kenyan government's public-private partnership project pipeline in December 2025. In March 2026, the Konza Technopolis Development Authority launched a procurement process for transaction advisory services, seeking professional institutions with technical, financial and legal capabilities to participate in project preparation. The advisory work covers review of the existing feasibility study, verification of technical solutions, design of the investment structure, financial model analysis and investor market testing, and extends to the preparation of tender documents and subsequent project agreement negotiations.

Under the government's project arrangements, the Konza Technopolis Development Authority serves as the project implementing agency, while the Public-Private Partnership Directorate of the Ministry of Finance is responsible for coordinating the relevant procedures. The newly signed preparation financing agreement will support the transaction advisor in designing the project's commercial structure and preparing for investment, with a private partner to be introduced through a subsequent competitive procurement process to undertake the development and operation of the data centre and smart city facilities within the agreed scope.