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Master Developer for Konza Technology CityPresentation to: Institutional Investors Africa

Investment Conference

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Policy Objectives

Infrastructure and Universal Access to

§ICTs§Content and Applications§Strategic Partnerships

§Poverty Reduction/Employment Creation§Human Capacity Development§Improved Governance

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Project Profile

ProjectProfile

§Konza is envisioned to be an exemplar mixeddevelopment technology city developed on a Greenfieldsite 60 kms from Nairobi on the major Mombasa NairobiHighway.

§Phased development over 20 years with the BPO Parktaking up 23% of the planned 6M square feet of floor space.

EconomicBenefits

§Create 200,000 jobs over in BPO, IT ITES and relatedsectors in 20 years.

§World class infrastructure and technology to facilitateresearch, education and business.

§Kenya attains vision as leading ICT nation in Africa.

SocialBenefits

§Mixed urban development and best in class

residential and working environment.§Enhance local research and development and

entrepreneurship and IT enterprise formationculture.

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Sponsor Profile

Kenya ICT Board

nImplementation agency of the Ministry of 

Information and Communications.

nUndertaking the Kenya Transparency and

Infrastructure Project worth $116M in

connectivity, government digitization and rural

inclusion.

nInternational Marketing & local sector 

development for IT, ITES development ,

investment facilitation, incubation, standards.n

Ministry of 

Information of Communication

n

nGovernment Ministry leading the Inter-ministerial

co-ordination on the Konza City Project.

nPolicy and project initiation of major IT projectsincluding undersea and national connectivity,

National ICT Masterplan and Konza City.

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Broadband Infrastructure InvestmentUSD 200M

Kenya National Fiber OpticNetwork Completed 2009

Teams Undersea CableMombasa - Fujaira Completed2009

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6

2009 2010 2011 2012 2013 2014 2015Project Ministry

Infrastructure

Total:S17.0

Billion USD 106 millionKENET – Capacity purchase for Universities

Government Data Center (GDC)

Government Common Core Network (GCCN)

Bandwidth to E-Government Network

All Other Infrastructure projects

Education

E-Government

E-Government

InfoComm

Various

Applications

Total:S14.8

Billio

n

Kenya Government Email – Lotus Notes

Education Management Information System(EMIS)

Integrated Financial Management InformationSystem (IFMIS)

Integrated Personnel & Payroll Database (IPPD)

All Other Application Initiatives: Develop databasemanagement and ministry-specific processes

E-Government

Education

Finance

Public Service

Various

USD 35 million (continuous)

USD 26.2 million

USD 50 million

Digitalization

Total:SX

Billion

National Lands Information Management System

High Court Registry- digitization & Application

Digitization of Company Registry Files

Lands

Judiciary

State LawUSD 2.2 million (in progress)

TBD (in progress)

USD 12.6 million

USD 12.5 million

USD 43.6 million

USD 8.4 million

USD 112 million

USD 12.5 million

USD 15.6 million

80+ technology-enabled projects worth over USD 0.5 billion are in progress or are planned for delivery across 39 Ministries.

Increased Investment in Government IT

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The Project

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The Process

9

Transaction

:tructure•Government•  MasterDeveloper

Vision 2030

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Overview Site Location

10

§Site sits on 5,000 acres§

§60 km from Nairobi onthe main highway

§Only 50 km from JomoKenyatta InternationalAirport

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Konza Technology City

I n v

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Konza Technology City

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World Class Design

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Four 5-year Phases of Investment

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Floor Space Development Costs

Status Development

Investment(USD 000)

% Space Floor Space

(000 SQM)

%

Space

BPO Park Master Developer andAnchor Tenant

1,350 28 1,400 23

Residential Master Developer 2,775 57 3,600 60

Financial District Master Developer 525 11 699 12

University Local Commitment 50 1 51 1

Science Park USD 85m IndicativeCommitment

200 4 226 4

Total  4,900 100 5,976100

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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)

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