Kenya’s data centre and highway gets US$666m China funding.

A data centre and highway in Kenya have received 67.5 billion shillings (US$666 million) as funding from China. The funds were issued  at Beijing where Kenya’s President Uhuru Kenyatta attended the second Belt and Road Forum.

President Uhuru Kenyatta today witnessed the signing of two project delivery agreements totalling to Sh 67.5 billion through concessional financing and Public Private Partnership (PPP).#KenyaChinaRelations pic.twitter.com/jbHT9WsMF4

— State House Kenya (@StateHouseKenya) April 26, 2019

The data center will be in a tech city which is already under construction; and is termed as the Konza project since it is located in Konza. Statement from President Uhuru Kenyatta’s office suggest that 17.5 billion shillings (US$173 million) will be for the development of data center within the Konza project. Chinese telecoms firm – Huawei, will be in charge of the Konza tech city development.

The remaining 5o billion shillings (US$493 million) will be for building a highway in the capital city – Nairobi.  The highway will link the main airport with the outlying districts; another Chinese company – China Road and Bridge Corporation will also be in charge of the construction of this highway. Note that the total cost for the highway is 51 billion shillings.

The projects include the Konza Data Centre and Smart Cities Project to be undertaken by Huawei at a cost of Sh 17.5 billion and the construction of the Nairobi JKIA to James Gichuru expressway on a PPP arrangement by the China Road and Bridge Corporation for Sh 50 billion. pic.twitter.com/6wcyaOahjQ

— State House Kenya (@StateHouseKenya) April 26, 2019

Kenya over the past few years have been receiving funds from China, in addition to technology and equipment which it is using to develop its infrastructure. Its biggest infrastructure since after independence is the new railway linking Mombasa to Nairobi. The railway opened in 2017.

Meanwhile, critics are accusing Kenyatta’s government of imposing the future generations with unbearable debt burdens by borrowing more funds from China. But in response the government is saying that borrowing to build infrastructure will prompt economic development.

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