Korea Trade-Investment Promotion Agency (KOTRA) has announced a $233.5 million (Sh34.40 billion) investment fund into the Konza City project.
This marks the end of the second stage of the Economic Innovation Partnership Program (EIPP) projects aimed at accelerating the development of the city.
The investment cost has been subdivided into three categories with the construction sector taking the larger share of $227.01 million (Sh 33.4 billion).
Basic equipment has been allocated $5.78 million (Sh 852.0 million) while management and monetary system has been approximated at $695,222 (Sh 102.41 million).
Speaking during the programme's final reporting session, KOTRA Kenya managing director Hyun Eom said they are pleased to record significant success during the implementation of the EIPP projects.
“Our intention is to deepen our cooperation through promoting Public Private Partnerships so that the Korean business communities can also get involved during the development of Konza Technopolis,” Eom said.
On his part, Konza Technopolis Development Authority (KODRA) CEO, John Paul Okwiri said local investors and start-ups have a solid chance to be incorporated into the plan.
“We will provide a platform where we will be able to incubate, support and develop the innovators and start-ups so that we can fill those gaps,” Okwiri said.
The smart logistics centre is intended to serve as the central hub for Kenya and the East African Community upon completion.
It also aims to achieve global standardisation and improve visibility in terms of facility size and processing capacity and enhance trade connectivity.
The facility's capacity is further intended to ensure it can meet the demands of a rapidly growing East African market and facilitate seamless trade operations.
The monitoring systems have so far instilled confidence in traders, leading to an influx of investments and an expansion of business opportunities.
Nairobi is evolving into a dynamic logistics hub, positioning itself as a formidable player in the global trade arena.
In the 2022-2023 budget allocation treasury CS Njuguna Ndung'u proposed to have Sh4.8 billion allocated in the development of Konza Horizontal Infrastructure phase 1, which was a decrease from the Sh5.2 billion allocated in the 2022-23 Budget.
Further, the CS proposed an allocation of Sh1.2 billion for the Konza Data Centre and smart city facilities which is also a reduction from Sh3.8 billion in the 2022-23 FY.
For the construction of the Konza Complex phase 1b, Ndung'u proposed an allocation of Sh475 million.
Notably, Sh5.7 billion had been proposed for the allocation of construction of the Kenya Advanced Institute of Science and Technologies at the Konza Technopolis.
