Kenya Pours More Money Into Long Delayed Nairobi Tech Hub

Kenya Pours More Money Into Long Delayed Nairobi Tech Hub

Waziri Mayai Wa Maradhi

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A stalled tech hub in Nairobi has been given a new contractor backed by additional cash more than ten years after it was first envisioned as a flagship of Kenya's industrial modernisation push, prolonging the postponement of a crucial innovation pillar proposed in 2013.

Pitched as a state-of-the-art innovation campus with research labs, testing facilities, and commercial space, the Kenya Industrial Research and Development Institute (KIRDI) techno-center has languished for years due to financing shortages, contractor disputes, and fluctuating completion schedules.

According to procurement disclosures made by the implementing agency, the Kenya National Highways Authority (KeNHA), the project has received an additional KES 3.4 billion ($26.1 million), increasing its total cost to KES 8.56 billion ($65.9 million), roughly 57% more than the initial KES 5.9 billion ($45.4 million) budget.

Kingsley Construction Company has been granted the primary construction contract by KeNHA for KES 2.66 billion ($20.4 million). The project is anticipated to be finished by February 2028.

The project is representative of a trend in Kenya's flagship innovation projects, such as Konza Technopolis, a technology city under construction 64 kilometres south of Nairobi, which has been hampered by underfunding, delays, and contractor disputes, blunting their economic impact and depriving taxpayers of the timely benefits they were supposed to provide.

With an initial construction cost of KES 3.9 billion ($30 million), the South B hub was initially scheduled for completion in March 2016. It was intended to be a cutting-edge establishment that would support Kenya's aspirations to become a middle-income, innovation-driven economy and house some of the nation's best scientists and engineers.

As expenses increased and funding lagged, deadlines continuously slipped—to November 2022 and beyond. Taxpayers have already spent KES 5 billion ($38.5 million) on the unfinished project, according to a January 2024 report from Auditor-General Nancy Gathungu.

According to Gathungu's report from 2025, "the project has stalled due to financial constraints and pending bills owed to the contractor." "The value for the money has not been realised."

Before giving up on the idea in favour of additional Treasury funds in 2024, KIRDI's board briefly considered finishing the project through a public-private partnership.

When the original contractor left the site in 2022 owing to outstanding debts, the project came to a complete standstill and was only partially completed.

The facility is designed with labs, lecture halls, showrooms, and an amphitheatre. Additionally, a three-star hotel, restaurants, commercial spaces, and multi-level subterranean parking are anticipated.
 
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