KONZA T

ECHNOPOLIS

CITY

PRES

ENTA

TION B

Y HEN

RY MUNG’A

SIA

DURING T

HE CONNECTE

D KEN

YA F

ORUM

LOCATION OF KONZA CITY IN KENYA

E-READINESS: CONNECTIVITY AVAILABLE FOR KONZA CITY

WHY KONZA CITY

Project Profile

Konza is envisioned to be an exemplar mixed development technology city developed on a 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.

Economic Benefits

Create 200,000 jobs over in BPO, IT ITES and related sectors in 20 years.

World class infrastructure and technology to facilitate research, education and business.

Kenya becomes a knowledge based economy.

Social Benefits

Mixed urban development and best in class residential and working environment.

Enhance local research and development and entrepreneurship and IT enterprise formation culture.

PROPOSED KONZA CITY

PROPOSED KONZA CITY CONT.

KONZA CITY KONZA CITY 5000 ACRES 5000 ACRES (2011 HA) (2011 HA) PLAN PLAN

Attribute Option 1 - Grid

Option 2 - Corridor

Option 3 - Radial Corridor

BPO/ITES Technopark area, ha

162.00 163.00 0 163.00

CBD area, ha 99.20 99.20 99.20

Hospital/ University area, ha

21.90 21.90 21.90

Residential community, ha

969.10 947.20 955.80

Water/ Sewage infrastructure, ha

74.60 74.60 74.60

Strategic reserve 42.00 48.80 25.30

Central park, ha 18.90 36.10 20.40

ALLOCATION OF ALLOCATION OF LAND IN KONZA LAND IN KONZA CITYCITY

K

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

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

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 2012Ground breaking in August 2012

KONZA CITY INCENTIVES PACKAGEGroup Scheme/Activity Income Tax

RateWithholding Tax

Investment Deductions

Import Duty/VAT

% Stamp Duty Reduction

% Work Permits Allowed

%

Domestic Market Access

AICT Park & ICT TowerICT Services

10 year exempt 20% there after

10 Years exempt

100% after tax holiday

Perpetually exempt

100% reduction

20% 100%

BScience and technology park

10 year exempt 20% there after

10 Years exempt

100% on new investment after tax holiday

Perpetually exempt on all inputs

100% reduction

20% 100%

CManufacturing and other services for export

10 year exempt 20% there after

10 Years exempt

100% on machinery and buildings after end of holiday

Perpetually exempt on all input

100% reduction

20% 70% for logistic good 50% for non strategic goods

DIncubator manufacturing and other services

10 year exempt 20% there after

10 Years exempt

100% on machinery and buildings after end of holiday

Perpetually exempt on all inputs

100% reduction

10% 70% for logistic good 50% for non strategic goods

ERegional headquarters

20% through out

100% on dividends

100% deductions on building

Perpetually exempt on all office equipment furniture and telecommunication

50% reduction

10% Restricted to regional affiliates

CONT…Group Scheme/Activity Income Tax

RateWithholding Tax

Investment Deductions

Import Duty/VAT

% Stamp Duty Reduction

% Work Permits Allowed

FZone developer and operator

10 year exempt 20% there after

10 Years exempt

100% on new investment & buildings after end of holiday

Perpetually exempt on all inputs

100% reduction

Class A: for managerial technical & supervisory cadre 5% of employees in drainage, telecommunication, roads, schools, health clinics, accommodation industrial go down, workshops offices, docks, yards, and related amenities granted

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)

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.