THE KONZA TECHNOPOLIS DEVELOPMENT AUTHORITY BILL (DRAFT)

7/27/2019 THE KONZA TECHNOPOLIS DEVELOPMENT AUTHORITY BILL (DRAFT)

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THE KONZA TECHNOPOLIS DEVELOPMENT AUTHORITY BILL

ARRANGEMENT OF CLAUSES

Clause

PART 1- PRELIMINARY

1-Short Title and Commencement

2-Interpretation

PART II- ESTABLISHMENT OF THE KONZA TECHNOPOLIS AND THE AUTHORITY

3-The Konza Technopolis

4-The Authority

5- Objective of the Authority

6- Functions of the Authority

7- Powers of the Authority

8- Board of directors of the Authority

9- Appointment, revocation and resignation of Board members

10- Powers of the Board

11- Conduct of business and affairs of the Board

12- Seal and execution of Documents

13- Staff and servants of the Authority

14- Delegation of the Authority s functions and powers

PART III- CHIEF EXECUTIVE OFFICER, OFFICERS AND OTHER STAFF OF THEAUTHORITY

15- Chief Executive, officers and other staff of the Authority

16- Employment of other officers and servants of the Authority

17- Authority s funds

18- Returns and reports

19- Bank accounts

20 - Power to borrow

21- Expenditure


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22 Financial year

23 Protection from personal liability

24- License to Operate

25- Application and Issue of License

26- Licensing Qualifications

27- Register of Licenses

28- Benefits and Incentives

29- Exemption from Taxes

30- Exclusion from the provisions of the State Corporations Act

31- Exclusion from the provisions of the Urban Areas and Cities Act

32- Exclusion from the provisions of the Physical Planning Act

33 Transitional and savings provisions

34- Power to make regulations

Schedule 1Schedule 2Schedule 3


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Short Title and Commencement

1. This Act may be cited as the Konza Technopolis Development AuthorityAct, 2013 and shall come into operation on such date as the CabinetSecretary may by notice in the Gazette, appoint.

Interpretation 2. In this Act, unless the context otherwise requires-

Auth ority means the Konza Technopolis Development Authority establishedunder section 4;

Boar d means the board of directors of the Authority;

Cab inet Secretary means the Cabinet Secretary for the time being responsiblefor matters relating to information technology and communications;

Cha irperson means the person appointed under subsection 8(1) as thechairperson of the Board;

Chi ef Executive Officer means the chief executive officer of the Authorityappointed under section 15;

Land means all that parcel of land known as Land Reference Number 9918/5located within Makueni County measuring approximately 2023.6 hectareswhich shall include a buffer zone of ten (10) kilometers radius and such other land as the Authority may from time to time acquire

Master Development Plan means the master development plan for the purpose of guiding, controlling, regulating and coordinating the orderlydevelopment of Konza Technopolis prepared by the Authority pursuant tosections 6(1) and 7(1);

The Konza Technopolis

PART II - THE KONZA TECHNOPOLIS AND THE AUTHORITY

3. There is hereby established over the Land an urban area known as theKonza Technopolis over which there shall be developed and maintainedtechnology, industrial, commercial, civic, educational, residential,recreational, and other related and incidental facilities and infrastructureunder the direction and management of the Authority.

The Authority 4. (1) There is hereby established an authority to be known as the KonzaTechnopolis Development Authority.

(2) The Authority shall be a body corporate with perpetual succession and acommon seal and which shall be ca able in its cor orate name of-

THE KONZA TECHNOPOLIS DEVELOPMENT AUTHORITY BILL

A Bill for

AN ACT of Parliament to provide for the establishment of an urban area designated the KonzaTechnopolis and to provide for the establishment of an authority to regulate the development,governance, planning, management improvement and maintenance of the Konza Technopolis and for matters connected therewith and incidental thereto.

ENACTED by the Parliament of Kenya, as follows-

PART 1- PRELIMINARY


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(a) suing and being sued;

(b) owning, taking, purchasing or otherwise acquiring, holding, charging anddisposing of movable or immovable property;

(c) receiving, borrowing and lending money;

(d) entering into contracts;

(e) doing or performing all such other things or acts for the proper performance of its functions under this Act which may lawfully be done or performed by a body corporate.

(3) Subject to the provisions of this law, the Konza Technopolis shall bedeveloped and maintained under the direction and management of theAuthority.

Mission of the Authority

5. The mission of the Authority is to develop, manage and maintain the KonzaTechnopolis and to ensure that it grows into a sustainable, world-classtechnology hub and a major economic driver for Kenya, with a vibrant mixof businesses, workers, residents, and urban amenities.

Functions of the Authority

6. The functions of the Authority shall be to-

(1) prepare, implement and update the Master Development Plan for theKonza Technopolis including managing the Land, causing surveys to be madeand survey plans prepared in respect of the Land;

(2) regulate, control and administer the development of the KonzaTechnopolis including the development of technology, industrial,commercial, civic, educational, residential, recreation and other related and incidental facilities and infrastructure;

(3) collect public and private funds and spend them in a flexible manner at itsdiscretion in order to carry out its mission and functions;

(4) facilitate the setting up and conduct of business in Konza Technopolis by providing one-stop licensing of potential investors and providers of services in Konza Technopolis;

(5) identify, map and make available to investors and developers land in theKonza Technopolis by way of lease, sub-lease, sale, licence or such other means and at such rental, price or fee, as the case may be, as the Authorityshall in its discretion determine;

(6) cause, procure, either by itself or through public, private or public-private- partnerships, the development, construction, operation and maintenance of infrastructure and supportive facilities in Konza Technopolis including butnot limited to roads, railways, sidewalks, bridges, tramways, tunnels,water courses, parks and recreation facilities;

(7) cause, procure, and if necessary finance, either by itself or through public, private or public-private-partnerships, the development, construction,operation, provision and maintenance in Konza Technopolis, as the case


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may be, of water, electricity, gas, telecommunications, sewage, sanitation,fire-fighting infrastructure, facilities and services;

(8) develop and determine the criteria for selection of investors and providersof services in Konza Technopolis;

(9) develop and determine the criteria on the basis of which land will be madeavailable to investors and any other users in Konza Technopolis;

(10) conduct inquiries, carry out surveys, collate, analyse and publishdata, information and factors influencing or relevant to development,

business or investment and to disseminate such data, information andfactors to investors or potential investors, whether local or foreign in theKonza Technopolis ;

(11) regulate and administer incentives in relation to taxes, customs andexcise duties and other fiscal and regulatory incentives that should be

provided to investors and developers in the Konza Technopolis;(12) promote, stimulate, facilitate and undertake in Konza Technopolis, either

by itself or through public, private or public-private-partnerships -

(a) economic and social development;

(b) the development of infrastructure as well as technology, industrial,commercial, and residential development;

(c) the development of art, culture, sport, civic, and recreational activities;

(d) public education including the development of educational facilities;and

(e) public health including the development of health and medicalfacilities;

(13) promote private, public and public-private-partnership investments inKonza Technopolis;

(14) plan, phase and co-ordinate the implementation of such policies, projects, programmes and activities within Konza Technopolis as are deemed bythe Authority to be of strategic importance to Konza Technopolis;

(15) cause the development and implementation of policies, programmes and projects for the protection, conservation and preservation of wild animalsand other natural resources within the Konza Technopolis;

(16) promote the opportunities for investment in Konza Technopolis bothinternationally and locally;

(17) act as the focal point for coordination of national and relevant countygovernments and other government agencies in respect of matters relatingto Konza Technopolis and the surrounding areas;

(18) carry out any other function conferred by or under this Act and to performany other functions that are supplemental, incidental or consequential to


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(12) make land in the Konza Technopolis available to persons wishing toinvest and/or conduct business in Konza Technopolis by way of lease,sale, licence or such other means and on such terms and conditions,including rental, price or licence fee, as the case may be, as theAuthority shall determine;

(13) construct, erect and repair water, electricity, gas, telecommunications,sewage, sanitation, roads and other municipal and infrastructuralfacilities and provide the related services thereof;

(14) enter into concessions or any other public-private partnerships for the provision of the services and infrastructure referred to in subsection7(13) above;

(15) charge and collect licence fees, rents, user fees and other revenuesrelating to its provision of land, facilities, infrastructure and servicesand pursuant to the proper carrying out of its functions under this Act;

(16) cause, procure, either by itself or through public, private or public- private-partnership funding the development, construction, operationand maintenance of such roads, railways, sidewalks, tramways,

bridges, tunnels, reservoirs, water courses, buildings, plants andmachinery and such other infrastructure and works as may benecessary for or conducive to the discharge of its functions;

(17) invest in the development of Konza Technopolis revenues generatedfrom the rents, licence fees, user fees and other monies generated or received by the Authority in the course of its carrying its functionsunder this Act;

(18) invest monies standing to the credit of the Authority and not for thetime being required for the purposes of its functions in such securitiesor in such other manner as the National Treasury may approve;

(19) purchase or otherwise lawfully acquire, take over or dispose anyassets, business, property, privilege, contract, right, obligation andliability of any person or body whether corporate or incorporate infurtherance of its functions;

(20) with the prior written consent of the National Treasury, borrow capitalfunds for the purposes of carrying its functions under this Act;

(21) enter into contracts or partnerships with any person or body whether corporate or incorporate which in the opinion of the Authority willfacilitate the discharge of its functions;

(22) train managerial and technical staff for the purpose of ensuringefficient and effective discharge of its functions;

(23) undertake such studies and research as may be necessary for the performance of its functions ;

(24) engage such person or persons, as are necessary or expedient for giving full effect to the provisions of this Act;

(25) regulate the construction of commercial, industrial and recreational


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buildings and facilities by investors, public authorities and privatedevelopers including determining the time within which suchconstruction should be completed;

(26) make recommendations to the National Treasury on appropriate fiscaltax and other investment incentives that the Authority deems necessaryto encourage private sector investment and participation in thedevelopment of Konza Technopolis.

Board of directorsof the Authority

8. The Authority shall be managed by a board of directors consisting of thefollowing persons-

(1) a chairperson who shall be appointed by the President from amongst persons with specialist knowledge and distinguished experience in mattersrelating to information and communications technology, economics, trade,finance, business administration, manufacturing and other industrial

production, applied industrial research and development or law;

(2) Principal Secretary of the Ministry for the time being responsible for matters relating to information technology and communications or hisdesignated alternate;

(3) the Principal Secretary responsible for the administration of the NationalTreasury or his designated alternate;

(4) the Governor of the Makueni County or his designated alternate;

(5) A representative from the Architectural Association of Kenya;

(6) four persons, not being public officers, appointed by the Cabinet Secretary,on the recommendation of and following a competitive recruitment processconducted by a private and independent recruitment agent, by virtue of their specialist knowledge and distinguished service and experience of at least ten(10) years in matters relating to information and communications technology,economics, trade and finance, business administration, manufacturing and other industrial production, applied industrial research and development or law;

(6) The Chief Executive Officer who shall be an ex-officio member.

Appointment,revocation andresignation of Board members

9. (1) A member of the Board appointed pursuant to subsections 8(1) or 8(6)shall, subject to such conditions as may be specified in his instrument of appointment, hold office for a term not exceeding four years and shall beeligible for reappointment for one further term. Members of the Board shall

be appointed at different times so that the respective expiry dates of their terms of office shall fall at different times;

(2) The appointment of any member of the Board pursuant to subsections 8(1)and 8(6) may at any time be revoked by the President or the Cabinet Secretary,as the case may be, if the member:

(a) is guilty of any improper conduct; or

(b) is incapacitated by prolonged physical or mental illness for a period


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(c) is unable or unfit, for any other reason, to discharge the duties of hisoffice.

(3) any member of the Board appointed under section 8 (5) shall cease to holdoffice-

(a) upon the expiry of his term of appointment;

(b) upon the expiry of one month, or such shorter period as may be agreed,after the date upon which the Cabinet Secretary receives a writtennotice, signed by the member, of his intention to resign;

(c) if he is absent without the permission of the Authority from threeconsecutive meetings of the Authority of which he has had reasonablenotice;

(d) if he has been convicted on a charge in respect of-

(i) an offence involving fraud, dishonesty or moral turpitudeand/or an offence under any law relating to corruption; or

(ii) any other offence punishable with imprisonment (in itself onlyor in addition to or in lieu of a fine).

(e) if he is adjudged bankrupt or enters into a composition scheme or arrangement with his creditors;

(f) if he is of unsound mind or is otherwise incapable of discharging hisduties.

(4) The members of the Board shall be paid by the Authority inconsultation with the Cabinet Secretary such remuneration and allowances outof the funds of the Authority as may be determined from time to time

Powers of the Board

10.(1) The Board shall have all powers necessary for the proper performanceof the functions of the Authority under this Act.

(2) Without prejudice to the generality of the foregoing, the Board shallhave power to-

(a) control, supervise and administer the assets of the Authority in such

manner as best promotes the purpose for which the Authority isestablished;

(b) determine the provisions to be made for capital and recurrentexpenditure and for the reserves of the Authority;

(c) receive any grants, gifts, donations or endowments and makelegitimate disbursements therefrom;

(d) open such banking accounts for the funds of the Authority as may benecessary;

(e) invest any of the funds of the Authority not immediately required for its purposes in the manner provided in subsections 7(15) and (16);


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(2) A person or a Board committee or an officer as the case may be, delegatedwith such function or power shall be bound to observe and have regard to allconditions and restrictions imposed by the Board and all requirements,

procedures and matters specified by the Board in respect of such delegation of function or power.

(3) Any function or power delegated under this section shall be performed andexercised in the name and on behalf of the Authority.

(4) A delegation under this section shall not preclude the Authority itself from performing or exercising at any time any of the delegated functions or powers.

PART III - CHIEF EXECUTIVE, OFFICERS AND OTHER STAFF OFTHE AUTHORITY

Chief executive,officers and otherstaff of theAuthority

15.(1) There shall be an officer of the Authority, to be known as the Chief

Executive Officer, who shall be appointed by the Board on such terms andconditions as the Board shall determine and who shall be responsible for the execution of the policy of the Authority and for the control andmanagement of the day-to-day business of the Authority.

(2) No person shall be appointed to as Chief Executive Officer unless such person-

(a) possesses a p o s t g r a d u a t e degree from a recognized institutionand has a least ten (10) years working experience in a senior positionin matters relating to information communications technology,manufacturing and industrial production, economics, trade, finance or

business administration; and

(b) satisfies the requirements of Chapter 6 of the Constitution.

(3) The Chief Executive Officer shall be the Secretary to the Board.

(4) Without prejudice to the generality of subsection (1) the Chief ExecutiveOfficer shall be responsible for-

(a) the general conduct, administration and management of the functions,activities and day to day affairs of the Authority;

(b) the preparation of programs, schemes and projects for theconsideration of the Authority;

(c) the execution of all programs, schemes and projects of the Authority;and

(d) the carrying out of the decisions of the Authority.

(5) The Chief Executive Officer shall have general control of the officers andservants of the Authority.

(6) The Chief Executive Officer shall perform such further duties as the Boardmay, from time to time, direct.

(7) In discharging his duties, the Chief Executive Officer shall act under the


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general authority and direction of the Board.

Employment of other officers andservants of theAuthority

16.(1) The Board may, from time to time and on the recommendation of theChief Executive Officer, appoint other officers and employees as it deemsnecessary upon such terms and conditions as it deems proper for theefficient operation of the Authority.

(2) No person shall be eligible for employment as an officer or servant of theAuthority if he has, directly or indirectly, by himself or through his partner, anyshare or interest in any contract or proposed contract with, for or on behalf of the Authority.

Authori ty s funds 17.(1) The funds of the Authority shall consist of-

(a) such monies as may from time to time be provided by Parliament for the purpose of enabling the Authority exercise its powers and performits functions under this Act;

(b) such monies or assets as may accrue or vest in the Authority in thecourse of the exercise of its powers or the performance of its functionsunder this Act including but not limited to licence fees, user fees, rentsand any other monies accruing to the Authority under this Act;

(c) all monies borrowed by or lent to or donated to the Authority ; and

(d) any monies accruing to the Authority from any other source.

(2) Subject to the provisions of this Act or any other law, the Authority shallhave the power to use the funds of the Authority in its discretion so as to carry

out its objective and functions.

(3) The Authority shall cause to be kept all proper books and records of account of income, expenditure, assets and liabilities of the Authority.

(4) At the end of each financial year the accounts of the Authority shall beaudited by the Auditor-General or an auditor appointed by the Board with theapproval of the Auditor-General.

(5) At the completion of an audit under this section the auditor shall make areport thereon to the Authority and shall at the same time furnish a copy of thereof to the Cabinet Secretary.

Returns andreports

18.(1) The Authority shall furnish to the Cabinet Secretary, such returns,reports, accounts and information with respect to its property and activitiesas the Cabinet Secretary may, from time to time, require or direct.

(2) Without prejudice to the generality of subsection (1), the Authority shall,within three months after the end of each financial year, cause to be made andtransmitted to the Cabinet Secretary a report dealing with the activities of theAuthority during the preceding financial year.

(3) The report under subsection (2) shall be in such form and shall contain suchinformation relating to the proceedings and policy of the Authority as theCabinet Secretary may, from time to time specify.


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Bank accounts 19.The Authority shall open and maintain bank accounts in such banks inKenya as the Authority may deem fit, and every account shall be operatedupon as far as practicable by cheques signed by any person as may beauthorised by the Board for such purpose from time to time.

Power to borrow 20.(1) The Authority may from time to time, with the approval of the NationalTreasury, borrow, at such rate of interest and for such period and upon suchterms as to the time and method of repayment and otherwise as the NationalTreasury may approve, any sums required by the Authority for meeting anyof its obligations or discharging any of its duties under this Act.

(2) The Authority may from time to time, with the approval of the NationalTreasury, borrow money by the issue of bonds, debentures, stock or similar securities and upon such terms as it may, with the approval of the CabinetSecretary, deem expedient, for all or any of the following purposes:

(a) the provision of working capital;

(b) the performance of the functions, the exercise of the powers and thedischarge of the duties of the Authority under this Act;

(c) the performance of such additional functions as may be undertaken bythe Authority under this Act;

(d) the redemption of any shares, debentures, stock or other securitieswhich the Authority is required or entitled to redeem; and

(e) any other expenditure properly chargeable to capital account.

Expenditure 21.(1) The following charges shall be defrayed out of the funds of theAuthority for any financial year;

(a) the remuneration and allowances of the Chairperson, the Secretary andmembers of the Board ;

(b) the salaries, remuneration, fees and allowances, pensions and gratuitiesof the staff, agents, technical and other advisers or consultants of theAuthority;

(c) all expenses related to the working and management of the Authorityand its projects and other properties including proper provision for depreciation, wear and tear or renewal of assets;

(d) such sums including compensation as may be payable by theAuthority;

(e) taxes, rates and levies payable by the Authority under any law;

(f) interest on loans raised by or on behalf of the Authority;

(g) sums required to be transferred to any sinking fund, or otherwise setaside for the purpose of making provision for the redemption of securities or repayment of loans; and

(h) such other sums as the Authority may approve for payment out of the


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revenue account of the Authority in respect of any financial year.

Financial Year 22.The financial year of the Authority shall be the period of twelve monthsending on the thirtieth of June in each year.

Protection frompersonal liability

Licence to operatein Konza

Application andissue of licence

23.(1) The staff of the Authority shall not be personally liable for an act whichis done or purported to be done in good faith on the direction of theAuthority or the Board in the performance or intended performance of anyduty or in the exercise of any power under this Act or the regulations madethereunder.

(2) Any expenses incurred by a person referred to in subsection (1) in anysuit or prosecution brought against him before any court in respect of any actwhich is done or purported to be done by him under this Act on the direction of the Board shall, if the court holds that that act was done in good faith shall be

paid out of the general funds of the Authority, unless the expenses arerecovered by him in that suit or prosecution.

(3) The provisions of this section shall not relieve the Authority fromliability in tort or contract, to pay compensation or damages to any person for any injury to him, his property or any of his interests caused by the exercise of any power conferred by this Act, or any other written law.

REGULATORY PROVISIONS

24.(1) No person shall-(a) carry on business in the Konza Technopolis; or

(b) hold himself out as providing or maintaining activities or facilities

within the Konza Technopolis

except under and in accordance with a licence issued under this Act.

(2) Any person who contravenes the provisions of subsection (1) commitsan offence and shall be liable on conviction to a fine not exceeding five millionshillings or to imprisonment for a term not exceeding five years or to both..

25(1) A person who intends to invest in and/or carry on business in the KonzaTechnopolis shall apply, in the prescribed form, to the Authority for anappropriate licence or for a renewal of the licence.

(2) The Authority shall evaluate an application submitted pursuant tosubsection (1) on such criteria as the Authority shall determine including butnot limited to the nature of the investment the applicant intends to make and/or the business the applicant intends to undertake, the financial capability of theapplicant and the economic, social and environmental impact of the applicant s

proposed business.

(3) The Authority shall consider and make its decision on an applicationfor a licence within a period of thirty days from the date on which thecompleted application form together with relevant supporting documents fromthe licence has been received by the Authority.


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(4) The Authority shall issue the licence or renewal of a licence pursuant tosubsection (1) upon payment by the applicant of a prescribed licence fee.

(5)A licence issued under this section shall-

(a) be in the prescribed form;(b) authorise the licensee to carry on business as in the Konza

Technopolis;(c) specify the business to be carried on under the license;(d) specify the validity period;(e) contain such other conditions as the Authority shall determine from timeto time; and(f) provide that the licensed entity may derive such benefit from the listthereof inSchedule 3 as the Authority, in its discretion, may grant in thelicense..

.

(6) A licence issued under this section may-(a) be modifi ed at any time on written notice to the holder by

the Authority, if in the Authority s opinion the modification isnecessary for the purposes of achieving the mission of the Authority,

provided that the Authority shall invite the licensee to file any writtenrepresentations as necessary before the final decision is made;

(b) be suspended or revoked by the Authority if the holder fails to complywith the conditions contained in the licence or laid down in this Act or in any regulations made hereunder.

26.(1) Without prejudice to the generality of section 25(3), an applicant for alicence to carry on business in the Konza Technopolis shall:-

Licensing Qualifications

(a) be a limited liability company incorporated in Kenya (whether or not itis one hundred per cent foreign owned), [a Kenyan registered branch of a foreign company, or a partnership registered in Kenya] with the

purpose of undertaking the activity sought to be undertaken in theKonza Technopolis 1;

(b) have the financial capacity; technical and managerial expertiserequired for developing or operating the business sought to be carriedon in the Konza Technopolis;

(c) own or lease land for a minimum period of thirty years o r s u c ho t h e r p e r i o d o f t i m e a s t h e B o a r d m a y d e t e r m i n e t o

b e s u i t a b l e , within theKonza Technopolis.

27.(1) The Authority shall keep in such form as it considers appropriate, aregister of the holders of existing licences issued under this Act specifying-

(a) the name of the licence holder;


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1 GoK may wish to consider whether or not to open up investments to any kind of legal entity e.g. a branch of a foreign company


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(b) the address of the principal place at which the licence holder carries on business

Register of licences

(2) Where-

(a) the holder of the licence ceases to carry on the business to which thelicence relates; or

(b) a change occurs in any particulars which are required to be entered inthe register of licence holders with respect to the holder of a licence,

the holder shall within fourteen days of the cessati on of business or occurrence of the specific event leadin g to change in part icu lar s notifythe Authority of such particulars or change in the prescribed form.

Benefits andincentives

28. Persons licensed to operate in the Konza Technopolis and engaged in the businesses set forth in Schedule 2 hereto may be granted any or all of theexemptions and incentives set forth in Schedule 3 as the Authority may, in

its sole discretion, deem fit and such benefits will be stated in the licencegranted to such Person by the Authority.

Exemption from Taxes

29. (1) The Authority shall be exempt from all existing and future taxes andduties payable under the laws of Kenya 2.(2) Any document entered into by the Authority (including, withoutlimitation, any lease granted by the Authority), shall be exempt from anystamp duty under the Stamp Duty Act

Exclusion of theprovisions of theState CorporationsAct

30 . The provisions of the State Corporations Act shall not apply to theAuthority.

Exclusion of provisions of theUrban Areas andCities Act

31.The provisions of the Urban Areas and Cities Act shall not apply to theKonza Technopolis.

Exclusion of the 32- The provisions of the Physical Planning Act shall not apply to the KonzaTechnopolis .

Provisions of thePhysical Planning Act

Transitional andsavings provisions

33.In this secti on

(1) appointed day means the day on which the Act shall come into force; and

(2) KOTDA means the Konza Technopolis Development Authorityestablished under the Konza Technopolis Development Authority Order, 2012existing immediately before the appointed day.

(3) The Authority shall be the successor to KOTDA and subject to this Act, allrights, duties, obligations, property (movable and immovable) and other assetsand liabilities of KOTDA existing on the appointed day shall vest and beautomatically and fully transferred to the Authority.

(4) Every public officer having the power or duty to effect or amend any entryin a register relating to property or to issue or amend any certificate or other document effecting or evidencing title to property, shall, without payment of afee or other charge and upon request made by or on behalf of the Authority, do


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all such things as are by law necessary to record the vesting and transferring of

2 Treasury to confirm


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the property mentioned in subsection (1).

(5) On the appointed day, all rights, powers, liabilities and duties, whether arising under any written law or otherwise, which immediately before theappointed day were vested in, imposed on or enforceable by or againstKOTDA shall, by virtue of this section, be transferred to, vested in, imposed onor become enforceable by or against the Authority.

(6) Any existing contracts, agreements, conveyances, deeds, leases, licences, permits, exemptions, power of attorney, undertakings, securities and other instruments, whether analogous to the foregoing or not, entered into by, madewith or granted or addressed to KOTDA whether alone or with any other

person and whether as principal or agent, shall as from the appointed day, be binding and of full force and effect in every respect against or in favour of theAuthority as if, instead of KOTDA, the Authority had been a party thereto,

bound thereby or entitled to the benefit thereof and as if any reference, expressor implied to any director, officer or employee of KOTDA as respects anything

to be done on or after the appointed day , were substituted a reference to thedirector, officer or employee of the Authority who nearly corresponds thereto.On and after the appointed day, all actions, suits or legal proceedings pending

by or against KOTDA shall be carried on or prosecuted by or against theAuthority.

(7) All directors of KOTDA in office on the appointed day shall cease to besuch directors unless otherwise appointed as directors pursuant to the

provisions of section 8.

(8) Any person who is employed by KOTDA immediately before the appointedday shall on that day become an employee of the Authority on the same terms

and conditions of service as his/her existing terms and conditions and subject toany subsisting notice of termination, resignation and variation, and suchemployment with KOTDA and the Authority shall be deemed to be continuous.

Regulations 34.(1) The Authority may, in consultation with the Cabinet Secretary, makesuch regulations as may be expedient or necessary for the better carryingout of the provisions of this Act or for prescribing anything that may be, or is required to be, prescribed under this Act.

(2) Without prejudice to the generality of subsection (1), regulations may bemade for-

(a) the regulation, governance, planning and administration of KonzaTechnopolis and generally providing for the orderly development,

planning and construction of land, infrastructure, buildings and other facilities in Konza Technopolis;

(b) prescribing the manner in which documents, cheques and instrumentsof any description shall be signed or executed on behalf of theAuthority;

(c) the imposition or levying of fees, costs, levies, contributions or anyother charges in such cases as may be determined by the Authority;

(d) providing for such matters in connection with shares, stock, bonds or


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debentures issued under this Act as may appear necessary or expedientto the Authority, and, in particular, for regulating the method of issue,transfer, redemption or other dealing with such shares, stock, bonds or debentures;

(e) providing for such other matters as are contemplated by or necessaryfor giving full effect to the provisions of this Act.


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SCHEDULE 1 (s. 10)

1. Meetings of the Board

(1) The Board shall meet not less than four times in every financial year and not more than threemonths shall elapse between the date of one meeting and the date of the next meeting.

(2) Notwithstanding subparagraph (1), the Chairperson may, on his own motion, or uponrequisition in writing by at least three members of the Board shall , convene a special meeting of theBoard at any time where he deems it expedient for the transaction of the business of the Board.

(3) The quorum for the conduct of the business of the Board shall be half of the total members of theBoard.

(4) Unless at least six members of the Board otherwise agree, at least fourteen day s written notice of every meeting of the Board shall be given to every member of the Board.

(5) The Chairperson shall preside at every meeting of the Board but the members present shall electone of their number to preside whenever the Chairperson is absent, and the person so elected shallhave all the powers of the Chairperson with respect to that meeting and the business transactedthereat.

(6) Unless a unanimous decision is reached, a decision on any matter before the Board shall be by amajority of the votes of the members present and voting, and in case of an equality of votes, theChairperson or the person presiding shall have a casting vote.

(7) A written resolution signed by all members of the Board shall constitute a valid resolution of theAuthority as if it were duly passed at a validly constituted meeting of the Board.

(8) Subject to subparagraph (3), no proceedings of the Board shall be invalid by reason only of avacancy among the members thereof.

2. Committees

(1) The Board may establish such committees as it may deem appropriate to perform such functionsand responsibilities as it may determine.

(2) The Board shall appoint the chairperson of a committee established under subparagraph (I) fromamongst its members.

(3) The Board may where it deems appropriate, co-opt any person to attend the deliberations of anyof its committees.

(4) All decisions by the committees appointed under subsection (1) shall be ratified by the Board.

3. Disclosure of interest

(1) A director who has an interest in any contract, or other matter present at a meeting of the Boardshall at the meeting and as soon as reasonably practicable after the commencement, disclose the factthereof and shall not take part in the consideration or discussion of, or vote on, any questions withrespect to the contract or other matter, or be counted in the quorum of the meeting duringconsideration of the matter.

(2) A disclosure of interest made under subparagraph (1) shall be recorded in the minutes of the


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meeting at which it is made.

(3) A director who contravenes subparagraph (1) commits an offence and is liable to a fine notexceeding Kenya Shillings two hundred thousand and removal from the Board by the appointingauthority

4. Execution of instruments

Any contract or instrument which, if entered into or executed by a person not being a body corporate,would not require to be under seal, may be entered into or generally or specially authorized by theAuthority for that purpose.

5. Minutes

The Board shall cause minutes of all resolutions and proceedings of meetings of the Board and theBoard committees to be entered in books kept for that purpose.


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SCHEDULE 3 3 (section 28)

(a) Exemption from payment of income tax for the first ten years from the date of businessestablishment in Konza, provided that the income tax rate shall be limited to fifteen per cent

for the ten years following the expiry of the Exemption granted under this paragraph.

(b) Exemption from the payment of withholding tax on dividends and any other payments madeto non-residents during the period that the enterprise is exempted from payment of incometax under subsection (1)(a).

(c) Exemption from the Value Added Tax Act and from paying Value Added Tax on any goodsand services purchased by the Licensee for use within the Konza Technopolis;

(d) Exemption from the payment of customs duties on any goods or services imported for the purpose of construction of buildings in Konza Technopolis;

(e) Exemption for acquiring a Single Business Permit from the County Government 4;

(f) Exemption from the payment of full withholding tax in respect of information andcommunication technology services rendered to a resident person, which withholding taxshall instead be at the rate of five per cent.

(g) Exemption from stamp duty on the execution of any instrument relating to the businessactivities of the enterprise within the Konza Technopolis.

(h) Exemption from payment of Pay-as-You- Earn on earnings accruing from services provided by non-resident employees of business enterprises located within the Konza Technopolis.

(i) Exemption from quotas or other restrictions or prohibitions on import or export trade with theexception of trade in firearms, military equipment or other such goods.

(j) Exemption from local ownership requirements under the Kenya Information andCommunications Act for investors and service providers operating as business processesoutsourcing, application service providers and content service providers.

(k) Exemption from rent or tenancy controls under the Landlord and Tenant (Shops, Hotels andCatering Establishments) Act.

(l) Entitlement to such number of Class A or Class H entry permits for directors, technical,supervisory and managerial staff granted as may be deemed reasonably necessary by theAuthority .

(m) The full protection of its property rights against all risks of nationalization or expropriation;the right to fully repatriate all capital and profits, without any foreign exchange impedimentsor restrictions whatsoever.

3 These should be carefully reviewed by Treasury, MoIC, Ministry of Trade and AG4 To insert detailed provisions from the appropriate legislation


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(n) The right of protection of industrial and intellectual property rights, in particular patents,copyrights, business names, industrial designs, technical processes and trademarks.

(o) Exemption from quotas or other restrictions or prohibitions on import or export trade with the

exception of trade in firearms, military equipment or other illegal goods.

(p) Such other incentives and exemptions as may be granted by the Cabinet Secretary by notice inthe Gazette.

Date post:	03-Apr-2018
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