Report Of The Dc On Communication, Information & Innovation On The Consideration Of The Technopolis Bill (national Assembly No. 6 Of 2024
A report of Communication, Information And Innovation (National Assembly)
Published: September 2024 · Pages: 30 · 13th
Key recommendations
- The Committee agreed with the proposal.
- On interpretation, the Ministry proposed to delete the word "Sophisticated" and substitute therefor the words "cutting edge" in the definition of the words "high technology". This is to ensurethetechnical definition is closely alignedwiththecommon usage in theICTsector. Delete the present definition of the word "Technopolis" and substitute therefor the following new definition. "Technopolis" means a designated geographical area with a high density of technology-orientedenterprises establishedwithprimaryobjective ofadvancingresearch, science, technology,innovation, partnerships and economic growth and includes the Konza Technopolis. This provides better technical clarity and to closely aligns the definition with the bestpractices
- 61.The Committee agreed with the proposal.
- 62.On the functions of the authority,theMinistry proposes to enhance the functions of the authority by inserting a new paragraph (o) immediately after paragraph (n). This new paragraph will read: "Coordinate and regulate Business Process Outsourcing (BPO) and Information Technology Enabled Services (ITES) sectors in partnership with relevant stakeholders." This amendment is driven by the global trend of countries embracing theIT services sector as a key driver of growth, economies todiversify and integrate more deeplyintotheglobaleconomy.Companiesare increasingly outsourcing and offshoring various business functions, from data entry and customer service to human resource management,finance, administration,business research, data analytics, legal processes, and other professional services, to cut costs and access a global talent pool. This shift not only helps retain talent but also combats the brain drain experienced by many low-and middle-income countries.Under the National ICT Policy of 2019,Konza Technopolis is
- The Committee agreed with the proposal.
- The Ministry proposes to refine the language in paragraph 6(a) by deleting the words "bylaws and,"appearing in theparagraphbecause the twowords arerepetitive as they are already imputedinthewords administrativeguidelines.Followingthis,theMinistrysuggestsinserting a new paragraph (g) immediately after paragraph(h),with thefollowing content:"Formulate legal, regulatory, and appropriate guidelines for sustainable BPO/ITES growth." The rationale behind this change is the recognition that countries with advanced BPO/ITES sectors,such as India, the Philippines, and South Africa, have specialized government agencies like the Technopolis DevelopmentAuthority(TDA) that play a crucial role in coordinating these development of the BPO/ITES sectors, including:
- i. Formulationofrelevantpolicies.
- ii. DevelopmentofincentivepackageforprivateBPO/ITESplayers
- ii. Workforcereadiness
- iv. Niche identification and marketing.
- vi. Establishing a national BPO/ITES strategy
- V. Framework for ICT Skilling
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REPUBLICOFKENYA THENATIONALASSEMBLY
THIRTEENTHPARLIAMENT(THIRDSESSION)
DEPARTMENTALCOMMITTEEONCOMMUNICATION,INFORMATIONAND INNOVATION
REPORT ON THECONSIDERATIONOFTHETECHNOPOLISBILL,2024NATIONAL ASSEMBLYBILLNO.6OF2024)
CLERKSCHAMBERS
DIRECTORATEOFDEPARTMENTALCOMMITTEES
PARLIAMENTBUILDINGS
NAIROBI
JULY2024
TABLEOFCONTENTS
| LISTOFABBREVIATIONSANDACRONYMS | LISTOFABBREVIATIONSANDACRONYMS | | |----------------------------------------|------------------------------------------------------------------|------| | LISTOFANNEXURES.. | LISTOFANNEXURES.. | | | CHAIRPERSON'SFOREWORD | CHAIRPERSON'SFOREWORD | | | PART ONE | PART ONE | | | 1.0 | PREFACE | 6 | | 1.1 | EstablishmentandMandateoftheCommittee. | 6 | | 1.2 | CommitteeMembership. | 7 | | 1.4 | CommitteeSecretariat. | 8 | | PARTTWO | PARTTWO | | | 2 BACKGROUNDOFTHETECHNOPOLISBILL,2024. | 2 BACKGROUNDOFTHETECHNOPOLISBILL,2024. | 9 | | 2.1 | SITUATIONALANALYSIS | 9 | | 2.2 | Institutional FrameworkProposed in theBill | 9 | | 2.3 | ComparativeAnalysis. | .10 | | PARTTHREE | PARTTHREE | .13 | | 3 OVERVIEWOFTHETECHNOPOLISBILL,2024. | 3 OVERVIEWOFTHETECHNOPOLISBILL,2024. | .13 | | 3.1 | IntroductionoftheBill. | .13 | | 3.2 | BriefOverviewoftheBill | .13 | | 3.3 | Clauseby ClauseAnalysis of theBill. | 14 | | PARTFOUR. | PARTFOUR. | 20 | | 4.0 | PUBLICPARTICIPATION/STAKEHOLDERCONSULTATION | .20 | | 4.1 | TheMinistry of Information,Communications andDigital Economy.... | ..20 | | 4.2 | KenyaAdvanced Institute ofScience and Technology(KENYA-AIST)... | ..23 | | 4.3 | GS1 Kenya...... | .23 | | 4.4. | Viscar Industrial Capacity Limited. | .24 | | 4.5 | Sote Hub.... | 24 | | 4.6. | Huawei Technologies(Kenya)CompanyLimited | .25 | | 4.7 | Association of Countrywide Innovation Hubs. | .25 | | PARTFIVE | PARTFIVE | .26 | | 5.0 | COMMITTEERECOMMENDATION | .26 | | PART SIX | PART SIX | 27 | | 6 SCHEDULEOFPROPOSEDAMENDMENTS | 6 SCHEDULEOFPROPOSEDAMENDMENTS | 27 |
LISTOFABBREVIATIONSANDACRONYMS
BPO
Business Process Outsourcing
CEO
ChiefExecutiveOfficer
ICT
Information, Communication Technology
ITES
Information Technology Enabled Services
KICA
KenyaInformationand CommunicationsAct
KoTDA
Konza Tecchnopolis Development Authority
MP.
MemberofParliament
N.A
National Assembly
SMEs
Small andMedium Enterprises
TDA
Technopolis Development Authority
UNDP
UnitedNationsDevelopmentProgramme
LISTOFANNEXURES
Annexure 1
AdoptionList
Annexure2
MinutesoftheCommittee
Annexure3
National AssemblyAdvertisements in thelocal dailies dated 16thApril,
2024
Annexure4
Writtensubmissions
CHAIRPERSON'SFOREWORD
ThisreportcontainstheCommittee'sproceedingsontheconsiderationoftheTechnopolis Bill(NationalAssemblyBill No.6of2024).TheBillwas publishedon 2ndFebruary2024,read theFirstTimeongthApril2024andcommittedtotheDepartmentalCommitteeon Communication,Information and Innovationfor review and reporting to the House pursuant toStandingOrder127.
TheBillseekstoprovideforacomprehensiveframeworkfortheestablishmentof a Technopolis in Kenya,to create the Technopolis Development Authority which will be responsible for the development, planning, management, improvement and maintenance of everyTechnopolisestablished.
Following the placement of adverts in the print media on 16th April 2024 requesting commentsontheBill'frommembersofthepublicandrelevantstakeholderspursuantto Article 118(1) (b)of the Constitution and Standing Order 127(3),the Committee received memoranda from Kenya Advanced Institute of Science and Technology (Kenya-AIST), GS1 Kenya,Sote Hub,Association of Countrywide Hubs,Viscar Limited and Huawei TechnologiesKenyaLimited.In addition,the Committeeheld meetingsvideletterRef: NA/DDC/CII/2024/016,Ref:NA/DDC/CI1/2024/017,Ref:NA/DDC/CII/2024/018,Ref: NA/DDC/CI1/2024/019,Ref:NA/DDC/CI1/2024/020andRef:NA/DDC/CII/2024/021 dated 2nd May 2024,with the Ministry of Information Communication and the Digital Economy and other sector players.Upon receipt of the memoranda,the Committee held a totalof five(5) meetings toconsider theBill and the submissions which areincorporated in this report.A total ofsix(6) memoranda werereceivedfrom institutional stakeholders in the ICT sector. Thereafter, the Committee proceeded for a report writing retreat which provided the opportunityto consider the submissionsofthestakeholders and tofurther draft,consider and approve its report.
OnbehalfoftheDepartmentalCommitteeonCommunication,InformationandInnovation andpursuanttoprovisionsofStandingOrder199(6),itismypleasantprivilegeandhonour topresentto thisHouse theReportof the Committee onitsconsiderationof theTechnopolis Bill National Assembly Bill No. 6 of 2024). The Committee is grateful to Offices of the Speaker andClerkof theNationalAssemblyfor thelogisticalandtechnicalsupportaccorded toit during its sittings. The Committee further wishes to thank the Ministry of Information Communication and Digital Economy and the various stakeholders for submitting their comments on the Bill. Finally, I wish to express my appreciation to the Honourable Members oftheCommitteeandtheCommitteeSecretariatwhomadeusefulcontributionstowardsthe preparation and production of thisreport.
It is mypleasure toreport that theCommittee has considered the TechnopolisBill (National AssemblyBillNo.6of2024)andhastheh9nourtoreporttotheNationalAssemblywiththe recommendationthattheBillbeARPROVEDwith-amendments.
Hon.JohnKiarie,M.P. Chairperson, Committee on communication, information and Innovation.
- 1.0 PREFACE
- 1.1 EstablishmentandMandateoftheCommittee
1. TheDepartmental CommitteeonCommunication,InformationandInnovationisoneof the Departmental Committees of the National Assembly established under Standing Order 216whosemandatespursuant to theStandingOrder216(5)areasfollows:
- i.Toinvestigate,inquire into,and report on all matters relating to the mandate,management,activities,administration,operations and estimatesoftheassignedministriesanddepartments;
- i. To study the programme and policy objectives of ministries and departments and the effectivenessof theimplementation;
- iii. onaquarterlybasis,monitorandreportontheimplementationofthenationalbudget inrespectofitsmandate;
- iv. To study and revierw all legislation referred to it;
7. Tostudy,assess and analyse therelative successoftheministries anddepartments as measuredbytheresultsobtainedascomparedwiththeirstatedobjectives;
- vi. departmentsasthey may deem necessary,and as may bereferred to themby the House;
- vii. Tovet andreport on all appointmentswheretheConstitutionor anylawrequires the National Assembly to approve, except those under Standing Order 204 (Committee on Appointments);
- viii. Toeramine treaties,agreementsand conventions;
- ic. To make reports and recommendations to the House as often as possible, including recommendations of proposed legislation;
- C. Toconsiderreportsof Commissions andIndependentOfficessubmittedto theHouse pursuanttotheprovisionsofArticle254oftheConstitution;and
- ri.To examine any questions raised by Members on a matter within its mandate.
- 2.In accordancewith the Second Schedule of the Standing Orders, the Committee is mandated to oversee:Communication,information,media and broadcasting(exceptfor technology, including development and advancement of technology, data protection and privacy, cyberspace and cyber-security, artificial intelligence, block-chain technology, and other emerging technologies.
3. In executing its mandate,the Committee oversees the StateDepartment for ICT and theDigital Economy.
PART ONE
1.2 Committee Membership
4. TheDepartmentalCommitteeon Communication,InformationandInnovationwas constituted by the House on Thursday, 27th October 2022 and comprises the following Members:
Chairperson
Hon.JohnKiarieWaweru,MP Dagoretti South Constituency UDA Party
Vice Chairperson
Hon.AlfahMiruka Ondieki,MP
Bomachoge Chache Constituency UDA Party
| Hon.ShakeelShabbirAhmed,CBS,MP Kisumu East Constituency IndependentMember | Hon. Gideon Kipkoech Kimaiyo MP Keiyo South Constituency UDA Party | |-----------------------------------------------------------------------------|----------------------------------------------------------------------| | Hon.ErastusKivasuNzioka,MP Mbooni Constituency WDM-K Party | Hon.Flowrence Jematiah Sergon, MP Baringo County UDA Party | | Hon. Joseph Kipkosgei Tonui, MP Kuresoi South Constituency UDA Party | Hon.Irene Nyakerario Mayaka,MP NominatedMember ODM Party | | Hon.BensudaJoyceAtienoOsogo,MP Homabay County ODM Party | Hon.KakutaMaimaiHamisi,MP Kajiado East Constituency ODM Party | | Hon.Bernard KiborKitur,MP Nandi Hills Constituency UDA Party | Hon.KhalifAliAbdisiratMP NominatedMember UDA Party | | Hon.Geoffrey Wandeto,MP Tetu Constituency UDA Party | Hon. Mumina Gollo Bonaya, MP Isiolo County Jubilee Party |
- 1.4 CommitteeSecretariat
1. TheCommitteeisfacilitatedbythefollowingstaffsecretariat:
Ms.Nuri Kitel Nataan Clerk AssistantI
Mr.Sakana Saoli Clerk AssistantIII
| Mr. Thomas Ogwel Fiscal Analyst I | Ms.Lillian Mburugu MediaRelationsOfficerIll | |--------------------------------------------|-----------------------------------------------| | Ms Marlene Ayiro Principal Legal Counsel I | Mr.Paul Shana SergeantAtArms | | Mr. Githinji Wanjohi ResearchOfficerII | Mr. Kelvin Lengasi Audio Officer | | Mr. Boaz Chebiego ResearchOfficerIII | Ms.FlorenceWanja ProtocolOfficerII |
PARTTWO
2 BACKGROUNDOFTHETECHNOPOLISBILL,2024 2.1 SITUATIONALANALYSIS
5. to harness the potential of technology and innovation for economic development. This initiative isrootedinKenya'sVision2o30,acomprehensivedevelopmentplanaimingtotransformKenya into a newly industrializing, middle-income country offering a high quality of life to all its citizens by 2030. 6. The Bill seeks to establish Technopolics across the country, envisioned as hubs for technology, innovation, and entrepreneurship that will drive Kenya towards achieving its long-term development goals. 7. Theconception of the TechnopolisBill2024isinformedby theglobal trend of establishing science parks and innovation districts as catalysts for regional economic development.These hubs are designed to foster collaboration among universities,research institutions, start-ups, and established companies, thereby spurring technological innovation and economic growth. The Bill outlines a governance structure for the development and management of Technopolises, emphasizing the creation of a conducive environment for high-tech companies and start-ups through favourable regulatory frameworks, financial incentives, and state-of-theartinfrastructure. 8. Kenya's approach,as articulated in the TechnopolisBill2024,mirrors successful models observed inothercountries,such asUSA'sSiliconValley,SouthKorea'sDaedeokInnopolis and Finland'sinnovation ecosystem12.These models underscore the importance of strategic government intervention in cultivating innovation ecosystems that can compete on a global scale. The Technopolis initiative aims not only to positionKenya as a leading innovation hub inAfrica but alsoto attract international talentand investment,therebyenhancing the country's competitiveness in the global knowledge economy. 9. The Technopolis Bill, 2024. sponsored by Hon. Kimani Ichung'wah, MP, Leader of Majority party is a government sponsored Bill that seeks to establish the Technopolis Development Authority,toprovidea frameworkfor thedevelopment and managementof technopolises,and for connectedpurposes.
2.2InstitutionalFrameworkProposedintheBill
- 10.The Bill creates the Technopolis Development Authority with the following functions:
- a.plan, develop and manage a Technopolis;
- b.allocateland toinvestors ina Technopolis;
- c.establishgovernance structuresforatechnopolis;
- d. establish and manage science parks, information communication and technology parks andinnovationcentres;
1Oksanen,K.,&Hautamaki,A.(2014).Transforming regions into innovation ecosystems:A model forrenewing local industrialstructures.TheInnovationJournal,19(2),1.
2Castells,M.,&Hall,P.(2009,November4).Technopolises of theworld:Themakingof twenty-first-century industrial complexes.SSRN.https://papers.ssrn.com/sol3/papers.cfm?abstract\_id=1496180
- e. facilitate the realization of Kenya's digital economy by use of emerging technologies to supportbusinesseswithin a technopolis;
2. g.promote technology oriented creative industries;
- f. host strategic government infrastructure powered by emerging technologies including data centres,research centres and centres of excellence;
4. h.coordinate the knowledge innovation ecosystem in a Technopolis in partnership with researchinstitutions andinnovationcentres;
- J. coordinate and administer incentives provided for operating in a technopolis;
- i. promote and market Technopolises to investors and users;
- k. undertake investment in a Technopolis either by itself or through partnerships;
1. administer a one-stop-shop for the provision of government services required to operatein atechnopolis; 9. m.facilitateresearch and implementationinnovationprogrammeswithin a Technopolis; and 10. n.any otherfunction that maybe assigned by the Cabinet Secretary or any written law.
2.3 ComparativeAnalysis
11. Thefollowing areconsiderationstocomparetechnopolisesaround theworldwiththeKenyan context:
i.Origin and Development
a)SouthKorea
ThefoundationforSouthKorea's technopolisescanbe tracedbackto thecountry's broader economic development strategies,initiated in the1960s and1970s,which focused on rapid industrialization.Recognizing the limitations of being heavily dependent on manufacturingandtheneedtomoveupthevaluechainintomoreknowledge-intensive industries, the South Korean government began to pivot towards fostering a high-tech economy in the 1980s.
One of the earliest and most significantsteps in this direction was the creation of the DaedeokScienceTown(nowDaedeokIrnopolis)in1973.
b)SiliconValley
Emerged organically over several decades,initially fuelled by the presence of Stanford University,the establishment ofhigh-tech companies,and aninflux of venture capital.Its growth was not the result of a specific legislative act but rather a confluence of entrepreneurial spirit, academic collaboration, and private investment.
c)Japan
Since the mid-197os, the focus of Japanese industrial policy has pivoted toward technological innovation, driven by the exceptional performance of Japan's industrial sector.In1971,theMinistryofInternationalTradeandIndustry(MITI)suggesteda shifttowardsaknowledge-intensiveindustrialframeworkthatminimizesenvironmental impact. Thus, the Japanese Technopolis plan was initiated in 1983 that led to the designationof26areass.
ii.GovernanceStructure
- a)South Korea
3 Kyaw, A.(n.d.). Technopolis and Regional Development in Japan... https://meral.edu.mm/record/2422/file\_preview/Technopolis%20and%20regional%20development%20in%20Japan.pd f?allow\_aggs=True
Hasdeveloped severalinnovationclusters,with the aim ofconsolidatingresearch and development (R&D)resources,fostering collaboration among research institutes, universities, and companies, and driving national economic growth through high-tech industries.
b)SiliconValley
technopole.Instead,itbenefitsfrom thebroaderregulatoryandeconomicpoliciesof California and the United States,with local governments,universities, and private entities playingsignificantrolesinitsecosystem.
c)Japan
The Technopolis Plan proposed the formation of the Technopolis Development advancing the construction of the Technopolis.This contrasts with the centralized approach taken by Kenya where in Japan the management of the technopolis is decentralizedamongstthedifferenttechnopolises.
ii. Financial Incentives and Funding
a)SouthKorea
Offers a comprehensive package of incentives for businesses operating within its innovation clusters, including tax benefits, financial grants for R&D activities, and subsidies for start-ups. The government actively invests in R&D, significantly supporting the growth of high-tech industries.
b) Silicon Valley
Has thrived on private investment, particularly venture capital, which has been crucial in funding start-ups and technology companies. Government policy has indirectly supported its growth through favourable business, tax, and intellectual propertylaws.
c)Japan
Japan provided significant government funding for infrastructure, research and development, and incentives for private sector investment in the designated Technopolis areas. The plan also included financial incentives to promote regional industries and attractbusinessestothesenewhubs.
iv.Focus andIndustrySpecialization
a)SouthKorea
Has strategically focused on specific high-tech industries, such as semiconductors, biotechnology, and information technology, among others. Each innovation cluster, including Daedeok Innopolis,often has thematic areas of specialization,leveraging existingresearch and industrial strengths tocompeteglobally.
b)SiliconValley
Has a broad focus on technology and innovation,with significant strengths in software, hardware, internet services, and more recently, biotechnology and clean energy. Its
c)Japan
JapaneseTechnopolisPlanwasdesigned topromotespecificsectorsoftechnological innovation tailored to the regional strengths of each Technopolis area. The plan was not only about high-tech industries but also included the integration of cultural, educational, andenvironmentalconsiderationsintothedevelopmentofTechnopolisareas.
v.Culture andEcosystemDynamics
d)SouthKorea
innovation hub. The country's rapid ascent in the technological and economic spheres is deeply rooted in its cultural values, educational priorities, and a highly coordinated innovation ecosystem thatincludesgovernment,industry,and academia.These elements combineto createa unique environmentconduciveto technological advancement and creative endeavours.
e)SiliconValley
Is characterized by a unique culture of risk-taking, innovation, and entrepreneurship, culturehasbeencritical toitssuccessbutischallengingtoreplicate.
f)Japan
Japan's approach to fostering technopolises, or science cities,is deeply influenced by its unique culture and the dynamics ofits innovation ecosystem.Thecountry'smethod of integratingtraditionalvalueswithcutting-edgetechnology andresearchhas established a robust framework that supports the growth of technopolises.
PART THREE
3 OVERVIEWOFTHETECHNOPOLISBILL,2024
3.1 IntroductionoftheBill
12. The Technopolis Bill, 2024, is a bill originating from the party forming the national government and is sponsored by Hon Kimani Ichung'wa, the leader of Majority Party. 13. TheTechnopolisBill,2024wastabledin theHouseforfirstreading and thereaftercommitted totheDepartmentalCommitteeonCommunicationInnovationandinformationpursuantto Standingorder127.
3.2 BriefOverviewoftheBill
- 14.This is a comprehensive framework for the creation,management and development of a Technopolis in Kenya;
- 15.TheBillis dividedintotenparts and hastwoschedules.
- a.Part I (Clause 1-3) of the Bill provides for the preliminary provisions including the short title; theinterpretation and the objects of the Act.
- b.Part II (Clause 4-14) of the Bill provides for the establishment of the Technopolis DevelopmentAuthoritywhichshall succeedtheKonzaTechnopolisDevelopment Authority established underLegal Notice No.23 of 2012;thefunctions of the Authority; the powers of the Authority; the Board of the Authority;vacation of office; powers of the Board; conduct of business and affairs of the Board; seal and execution ofdocuments;delegationoffunctionsandpowersoftheBoard;ChiefExecutive Officer; Corporation Secretary and staff of the Board.
- C. PartII(Clause16-21)oftheBillprovidesfortheestablishmentofaTechnopolis; the features of a Technopolis;Buffer Zone of a Technopolis; development of high technology innovation ecosystem; administration of a one-stop shop; and
- d.Part IV(Clause 22-27)of theBillprovides for thepower by theAuthority to undertakedevelopmentcontrolwithinaTechnopolis;developmentapproval; application and approval of development permit;development compliance;review and appeal of a decision of the Authority; and the offence of non-compliance.
- e.PartV(Clause28-36)oftheBillprovidesforalicencetooperateorcarryout business activities in a Technopolis; application and issuance of a licence; refusal to issue a licence;renewal of a licence; suspension and revocation of a licence;notice of non-compliance;variationofconditionsofalicence;reviewofadecisionof the Authority;andregisteroflicensees.
- f. Part VI(Clause 37-4o)of theBill provides for the power by the Authority to undertake inspections to ensure compliance with development control and licensing compliancewiththeprovisionsof theFairAdministrativeActionAct,2015;and coordinationwithothergovernmententities ontheperformanceoftheinspection function.
- g. Part VII (Clause 41-46) of the Bill provides for the sources of Funds of the Authority; the annual estimates of revenue and expenditure of theAuthority;accounts and audit; expenditure of the funds of the Authority; annual reports of theAuthority; and the financial year of the Authority.
- h.Part VIII(Clause 47-61)of theBill provides for theestablishment of the TechnopolisDispute Resolution Tribunal whose members shall be appointed by the JudicialServiceCommission;thetermofofficeofthemembersoftheTribunal;the oathof office;the discipline andremoval of membersof theTribunal;appointment of staff of the Tribunal; arrangement of business of the Tribunal; quorum for hearing anddeterminationofamatterbeforetheTribunal;jurisdictionof theTribunal; appeals to the Tribunal; procedure before the Tribunal; powers of the Tribunal; decisions of the Tribunal; appeal against the decision of the Tribunal; and rules of the Tribunal.
- i. Part IX (Clause 62-65)of the Bill provides for the general provisions including incentives;regulations;offences of provision of false information,non-compliance or obstruction; and general penalty for offences with respect to a development permit and a licence to operate in a Technopolis.
- j.Part X (Clause 66-67) of the Bill provides for the transitional and saving provisions and therevocationofLegalNoticeNo.23of2012.
- k.TheFirst Schedule to theBill provides for the conduct of business and affairs of the Board.
- 1.The Second Schedule to the Bill provides for oath or affirmation of office by members oftheTribunal.
3.3 ClausebyClauseAnalysisoftheBill
- 16.Clause 1:The Citation ofthe Act:The TechnopolisAct,2023.
- 17.Clause2:Interpretationofkey technicalterms thathavebeenusedintheBillsuch as:
- a."Authority"means the Technopolis Development Authority established under Clause4.
- b. "Buffer Zone" means a defined area surrounding a Technopolis that is subject to controlled land use;
- "Cabinet Secretary"means the Cabinet Secretary responsible for matters relating to information and communications technology;
- d."Konza Technopolis"means all that parcel ofland known as Land Reference Number 9918/6measuring2023.6hectaresorthereabouts.
- "Technopolis"which means a designated geographical area established to achieve theobjectsoftheActandincludestheKonzaTechnopolis. Theclauseprovidesforinterpretation oftechnical terms usedin theAct.
18.Clause 3:Objects of the Act:
- a.Provide for the establishment, development and management of a Technopolis in a designated geographical area;
- c.Position a Technopolis as a premier destination for technology-driven businesses, research institutions and innovation ecosystems;
- b. Create a conducive environment to attract and retain world-class talent by providing state-of-the-art infrastructure;
- d.Providefor theadoptionofsustainableenvironmentalpracticesand technologies within a Technopolis;
- e. Offerincentives and otherforms of Government support toencourageinvestmentsin a Technopolis;and
- f.Support the development of Kenya's knowledge-based economy.
The clause defines thescope and thepurposeofthisAct.
The overriding objective of the Act is to provide for the establishment and management of Technopolises acrossthecountrywhichhithertodidnoterist.
It seeks to strategically position Kenya at the forefront of technological innovation and economic transformation.
A Technopolismay beestablished in any part of theCountry. Standardized process and criteria for establishment of a Technopolis.
- 19.Clause4:Establishmentof theTechnopolisDevelopmentAuthority-asabodycorporate toadminister thisActwhich shall be the successor of theKonza TechnopolisDevelopment Authority. This ensures continuity and wealth of experience is transitioned. The Authority has all necessary powers of a body corporate necessary for the discharge of its mandate: The Authority shall regulate the activities of a Technopolis established under the Act.
Theclauseestablishes theTechnopolisDevelopment Authority-as abody corporate to administerthisActwhichshallbethesuccessoroftheKonzaTechnopolisDevelopment Authority.Thisensures continuity and wealthoferperienceis transitioned.TheAuthority shall regulate the activities of a Technopolis established under the Act.
- 20.Clauses 5:The Functions oftheAuthority-ensures that a Technopolis is planned to achieve itsintendedvision;centralizedmanagementofaTechnopolistoachieve sustainabilityand quality ofoperations.Thefunctionsof theAuthorityinclude:
- a.plan,develop and manage a Technopolis;
- b.allocate land toinvestors in a Technopolis;
- C.6 establish governance structures for a Technopolis.
- d.e establish and manage science parks, information communication and Technology parksand innovation centres;
- e.f facilitate realization of Kenya's digital economy by use of emerging technologies to support businesses within a Technopolis;
- f. including data centres,research centres and centers of excellence.
- g. promote technology oriented creative industries
- h. coordinate the knowledge innovation ecosystem in a Technopolis in partnership with researchinstitutionsandinnovation centres;
- i. promoteandmarketTechnopolisestoinvestorsandusers;
- j. coordinate and administer incentivesprovided for operatingin a Technopolis
- k. undertake investment in a Technopolis either by itself or through partnerships
- in a Technopolis
- m.facilitateresearch 1andimplementationofinnovationprogrammeswithina Technopolis;and
- n.a any other function that may be assigned by the Cabinet Secretary or any written law. This clause ensures among others thataTechnopolisis planned to achieveits intendedvision; centralizedmanagementofaTechnopolistoachievesustainabilityandqualityofoperations.
21. Clause 6 - Powers ofthe Authority - to enable the Authority to administer its functions under theAct.Thepowersinclude:
- a.formulateadministrativeby-laws and Guidelinesfor the sustainable development and management of a Technopolis.
- b.regulatelanduseinaTechnopolis;
- c.mobilise fundsfor the development of a Technopolis;
- d.approve development applications, issue construction permits and licence users within a Technopolis;
- e. charge fees and levies for proper carrying out of functions under the Act;
- f. enter, inspect and search any premises to enforce the Act;
- g. functions;and
- h. grant such exemptions of fees, levies or any other charges imposed under this Act. Thepowers under thisclausewill enable theAuthoritytoadministeritsfunctionsunder the Act.
The powers are necessary for purposes of enabling the Authority come up with the requisite administrative by-laws and Guidelines to guide the development and management of a Technopolis.
- 22.Clause 7-The Board of directors of the Authority - establishment of the Board which shall oversee management functions of the Authority. The Board is established in accordancewithMwongozoframeworkwhichistheCodeofGovernanceforState Corporations.The criteria for qualifications of the members of theBoard is also set out. The Chairperson and the members of theBoard shall hold office for a term of threeyears and shall
- a.the Chairperson appointed by the President;
- C. thePrincipal SecretaryfortheNational Treasury or a designatedrepresentative;
- b.thePrincipal Secretary of theministry responsiblefor matters relating to information communication and technology or a designated representative;
- d. the Attorney General or a designated representative;
- f. theChiefExecutiveOfficerwhoshallbeanexofficiomember.
- e. five persons, not being public officers, appointed by the Cabinet Secretary; and
- Theclause establishes theboardof directorsoftheAuthority which shall overseemanagement functionsoftheAuthority. TheBoardcompositionincludesbothStateandNonStateActorswhichprovidesthesuitable competenciesrequiredtoprovidepolicyguidancetotheAuthority. Theboardis establishedin accordancewithMwongozoframerworkwhichis thecodeof Governancefor statecorporations. TheBoard shall compose of 9 members as required by Mwongozo. The Bill also proposes the qualification for appointment of the Chairperson and independent Board members which inter alia includes at least an undergraduate degree and fifteen years experience forthe chairpersonand ten years'erperiencein anyrelevantfieldforthemembers
oftheBoard.
- 23.Clauses 9-15 ofTheBill provides for the powers of the Board, Conduct of business oftheBoard, seal and execution of documents,delegation of functions and powers,chiefexecutive officer, corporationsecretary andstaffoftheBoard.
24. Clause18:Buffer Zone-Thisis adevelopmentcontrol measuretopreventurbansprawland ensure seamlessintegration toa Technopolis.It alsoprovidesroom for expansion of a technopolis to accommodate auxiliary services not provided for within a technopolis 25. Clause 19 - Development of high technology ecosystem by the Authority - It is an knowledge-based economy. In developing the high technology innovation ecosystem, the Authority shall:
- a.identify strategic areas of innovation;
- b.cause the creation of specializedinstitutions in high technology in a Technopolis;
- C.
- d. adopt international best practices on high technology innovation standards; and
The Clause allows a Technopolis to create synergies for co-creation, collaboration and innovationwithinaTechnopolistoachievetheobjectivesofaTechnopolise.g.fora Technopolis with a focus in agriculture, will engage players within the agricultural sector to promoteR&D andinnovationtopromoteeconomicdevelopment (jobcreation,productionlines
- facilitatethecommercializationofinnovationsinaTechnopolis. etc.)
It is an intentional strategy torwards the achievement of Kenya's vision to be a globally competitiveknowledgebasedeconomy
- 26.Clause 20:Establishes One StopShop:tofacilitate the provision of government services and regulatory requirements for businesses to operate in a Technopolis including:
- a.theregistration andlicensingofbusinesses;
- b.theprovision of services related to immigration for expatriates;
- the processing of permits and approvals; and
- d. the administration of requirements relating to tax and customs. This clause seeks to facilitates the ease of doing business in a Technopolis by ensuring administrationof government services and regulatory essentials under oneroof. This wil shorten the time for settling investors enhancing the competitiveness of the Technopolises. The one stop shop will offer broaden services tailored towards investor facilitation such as SpecialEconomic Zones;expatriates compliance,green building certifications, licensing etc.
27. Clause 21: Establishes the Technopolis small enterprise support centre - to support the incubation and growth of small enterprises utilizing high tech and emerging technologies drawnfrom theinnovationeco-system.Thecentremay:
- b.provide technical assistance for new and young entrepreneurs.
- a. assist small enterprises with business support; and
28. Clause 22:Development Control -empowers the Authority to control developmentin a Technopolisvideapproval ofdevelopmentplanssubmitted byinvestorsin compliancewith the acceptedstandards. 29. Clause23and24:Development approval/permits - all developments to comply with a Technopolis physical and land use development plan and development codes. 30. Clause25:Developmentcompliance-enablestheAuthoritytoensurecompliancewiththe conditions ofthedevelopmentpermits. 31. Clause 26: Review and Appeal- enables the parties aggrieved by decisions of the Authority appeal to theTribunal.
This clause provides for a dispute resolution mechanism resulting from approval of developmentpermits.
This allovws forreassessmentof theAuthority's decisions offering an avenueforparties to requestforinternalrevierw orotherwiselodge anappeal with theTribunal.
This ensures fairness and due process in the Authority's decision making
- 32.Clause 27:Offences-creates offences and sanctions for non-compliance with development control.
This clause providesfor enforcement provisions by creating offences and specifies sanctions and legal consequences which areimposed ona personfor non-compliance with development permits requirementsinaTechnopolis.
This ensures that all developments align with the planned vision and standard ofa Technopolis hencepreservingorderanddeterringagainstviolations.
33. Clause 28: Issue of licence - Authority to issue licences to operate in a Technopolis. This ensures that only licensed activities are carried out in a Technopolis as per the Master Plan and the approved investment proposal. The license to be applied for by the licensee. 34. Clause29:Differentclassesoflicenses-allows theAuthoritytoissuedifferent classesof licenses to ensure alignment to different strategic focus areas and master plan of a Technopolis. 35. Clause 3o: Refusal to grant license - gives the Authority discretion in issuing licenses and has specified the grounds for such refusal. 36. ClauseS1:Renewal of licenses-enables theAuthority to renewlicences toensure continuity of businesses operating in a Technopolis. 5. 37.Clause32:Suspension orrevocation of a licence-by the Authority for non-compliance by the Licensee with the conditions of the License.This is a regulatory safeguard to ensure compliancebytheLicensees. 6. 38.Clause37:Inspections and enforcement-empowers theAuthority toundertake quality control of development at a Technopolis and allows the Authority to take appropriate measures to ensurecompliancewithinaTechnopolis. 7. 39.Clause 38:Enforcement sanctions -empowers the Authority to enforce sanctions on individualsorentitiesthatbreach anyprovisionsoftheAct. 40. Clause 39:FairAdministration-ensures the Authorityadheres to theconstitutional requirements of fairness.and dueprocessas further stipulated in the Fair Administration ActionsAct,2015before executingany enforcementaction. 9. 41.Clause 4o:Coordination on enforcement-enables theAuthority to collaborate with other
Thisclause enablestheAuthority tocollaboratewithotherrelevantgovernment agenciesin the investigationandenforcementprocesses. Thispromotesanintegratedapproachin linewith theonegovernment approachinitiative.
42. Clause 41: Sources Funds of the Authority: includes: exchequer, monies collected from its activities;grants,donations andmoniesborrowed. 43. Clause 42:Annual estimates:The Authority to prepare annual estimates of its budget according to PFMA. 44. Clause 43: Accounts and Audit: The Board to keep proper books of accounts of the Authority whichshall beauditedbytheAuditorGeneral accordingto thePublicAuditAct. 45. Clause 44:Expenditure: allowable expenditure out of the funds of the Authority-funding the operations of the Authority. 5. 46.Clause 45:Annual Reports:Authority shall, three months after the end of each financial year, prepare andsubmittotheCabinetSecretary an annualreportrelatingtothe operationsofthe Authority.
This clauserequires theAuthority toprepare an annualreportonitsoperationsforscrutinyby
Thisreport is apublic document accessible underArticle35oftheConstitution and theAccess
theCabinetSecretaryinasupervisorycapacity. to Information Act, 2016.
- 47.Clause 46: Financial Year: The financial year of the Authority shall be the period of twelve months ending on the thirtieth of June in each year.
- 48.Clause 47-Establishment of Technopolis Dispute Resolution Tribunal. This part consists of 14 clauses (47-61).
This part establishes a Tribunal under the Act to adjudicate over disputes arising under the Act.
TheTribunal presentsvarious advantages over thecourts on accountofits costeffectiveness, accessibility,freedomfromtechnicality,erpeditionandexpertknowledgeontheoperationsof Technopolises.
TheTechnopolises by theirnature deal with high technologyrelating to a blend of life sciences engineeringandotherrelateddisciplines.
It is erpected that there will be numerous disputes emanating from the Technopolises hence requiringa dedicated and a specialised tribunal to resolve the disputes
49.Clause 62:Incentives
The clauseprovidesfortheincentives under theSpecial EconomicZones,orany otherrelevant lawwillextendtotheTechnopolises
50. Clause 63: Regulations
The clause providesfor delegationof power for thecabinet secretary to makeregulations to providedetailson thespecified provisions of theAct.
- 51.Clause 64-Offences.The clause provides for offences and sanctions for breach of the provisions ofthe Act.
- 52.Clause66.Transitionalandsavingprovisions
This clause provides for the transition of the Konza Technopolis Development Authority to be thenewTechnopolisDevelopmentAuthority.
This will safeguard the gainsmade byKoTDA and ensure the expertise and regulatory aspects madeareseamlesslytransitioned.
It also preserves the eristing rights and obligations including contracts, staff into the nerw Authority.
A member of the Board of the former Authority in office, shall continue to be a member of the Board of the Authority as though appointed under this Act and shall serve the remainder of theirterm.
- 53.Clause 67-Revocation ofL.N23 of2012 The clause revokes the Legal Notice No. 23 of 2012 upon the commencement of the Act.
- 54.FirstSchedule:Conductofbusiness and affairs oftheBoard
- 55.Second Schedule: Oath and affirmation of office by members of the Tribunal.
PARTFOUR
4.0PUBLICPARTICIPATION/STAKEHOLDERCONSULTATION
- 56.Following thecall formemorandafrommembersof thepublicthrough theplacementof adverts in the print media on 16th April 2024 requesting comments on the Bill and invitation of stakeholdersvideletterRef:NA/DDC/CII/2024/016,Ref:NA/DDC/CI1/2024/017,Ref: Ref:NA/DDC/CI1/2024/021dated 2nd May 2024,the Ministry of Information,Communication, Association of CountrywideInnovationHubs and GS1Kenya submitted theirviews on theBill.
- 57.Thestakeholders submitted asfollows:
4.1 TheMinistry of Information, Communications and Digital Economy
The Ministry of Information, Communication and Digital Economy made the submissions as follows:
- 58.On the long title,theMinistry proposed to insert the word"establishment"immediately before the word development appearing in the long title. The justification is to enhance the clarity that theBillseekstoguideon theestablishmentoftechnopolises.
CommitteeObservations/Recommendations
59. The Committee agreed with the proposal. 60. On interpretation, the Ministry proposed to delete the word "Sophisticated" and substitute therefor the words "cutting edge" in the definition of the words "high technology". This is to ensurethetechnical definition is closely alignedwiththecommon usage in theICTsector. Delete the present definition of the word "Technopolis" and substitute therefor the following new definition. "Technopolis" means a designated geographical area with a high density of technology-orientedenterprises establishedwithprimaryobjective ofadvancingresearch, science, technology,innovation, partnerships and economic growth and includes the Konza Technopolis. This provides better technical clarity and to closely aligns the definition with the bestpractices
On paragraph (a) of the objects clause, the Ministry proposes to delete the Words "in a designated geographical area" appearing at the end of the paragraph. This is to improve the
CommitteeObservations/Recommendations
- 61.The Committee agreed with the proposal.
- 62.On the functions of the authority,theMinistry proposes to enhance the functions of the authority by inserting a new paragraph (o) immediately after paragraph (n). This new paragraph will read: "Coordinate and regulate Business Process Outsourcing (BPO) and Information Technology Enabled Services (ITES) sectors in partnership with relevant stakeholders." This amendment is driven by the global trend of countries embracing theIT services sector as a key driver of growth, economies todiversify and integrate more deeplyintotheglobaleconomy.Companiesare increasingly outsourcing and offshoring various business functions, from data entry and customer service to human resource management,finance, administration,business research, data analytics, legal processes, and other professional services, to cut costs and access a global talent pool. This shift not only helps retain talent but also combats the brain drain experienced by many low-and middle-income countries.Under the National ICT Policy of 2019,Konza Technopolis is
envisioned as a hub to capture the burgeoning global Business Process Outsourcing and Information Technology Enabled Services (BPO/ITES) sector in Kenya. Recognizing the importance of digital work models and BPOs,the government has prioritized these areas in the 4th Medium Term Plan (MTP) for 2023/27, with a goal to enable at least 1.5 million digital workers over a 5-year period.
CommitteeObservations/Recommendations
63. The Committee agreed with the proposal. 64. The Ministry proposes to refine the language in paragraph 6(a) by deleting the words "bylaws and,"appearing in theparagraphbecause the twowords arerepetitive as they are already imputedinthewords administrativeguidelines.Followingthis,theMinistrysuggestsinserting a new paragraph (g) immediately after paragraph(h),with thefollowing content:"Formulate legal, regulatory, and appropriate guidelines for sustainable BPO/ITES growth." The rationale behind this change is the recognition that countries with advanced BPO/ITES sectors,such as India, the Philippines, and South Africa, have specialized government agencies like the Technopolis DevelopmentAuthority(TDA) that play a crucial role in coordinating these development of the BPO/ITES sectors, including:
- i. Formulationofrelevantpolicies.
- ii. DevelopmentofincentivepackageforprivateBPO/ITESplayers
- ii. Workforcereadiness
- iv. Niche identification and marketing.
- vi. Establishing a national BPO/ITES strategy
- V. Framework for ICT Skilling
- vii. Ecosystem coordination
- vili. Trackrecordofglobalclients
CommitteeObservations/Recommendations
- 65.The Committee agreed with the proposal.
- 66.On clause 7,regarding the board of the authority,the Ministry proposes the following amendments:
- (a)For the qualification of the Chairperson as outlined in clause(2)(a),the word"Fifteen" should be deleted and replaced with"Ten".
- (b) For the qualification of the members as specified in clause (2) (b), the word "ten" should be deleted andreplacedwith"Five".
- (c)A new sub-clause should be inserted immediately after clause (5), reading as follows:
"(6) In the appointment of members under 7(1 )(e), the Cabinet Secretary shall ensure that the appointments provide equal opportunities to men, women, youth, persons with disabilities,andmarginalizedgroups.
Theproposed amendment aims toreduce theyears of experiencerequired inleadership and management for the Chairperson and members,to avoid excluding a broader pool of potential talent.The proposed clause isintendedto clarify theimportance of diversityinthe composition of the board."
CommitteeObservation
- 67.The Committeewas of theview that the amendment proposedinparagraph63(c)would be difficult to implement. The Mwongozo code of governance already stipulates such provisions that guides appointing officers onhow to conduct appointments to Boards.
68. On clause 8, regarding the vacation of office, the Ministry proposes to insert the words "The Chairperson and a" at the beginning of subclause (1) and subclause (2). This proposed insertion addresses the omission of the Chairperson's criteria in the provisions for thevacation of office.
CommitteeObservations/Recommendations
69. The Committee agreed with the proposal. 70. On clause 17, concerning the features of a Technopolis, the Ministry proposes to insert the following new paragraph as follows: A Technopolis shall- (e) Host enterprises that address national and global challenges by utilizing research, science,technology,and innovation.The othersmart andurban areas/cities.
CommitteeObservations/Recommendations
71. The Committee agreed with the proposal. 72. On clause 24,concerning the application and approval of a development permit,theMinistry proposes to insert a new sub-clause (6) immediately after Sub-clause (5), which states: "The Authority shall notify the applicant ofits decision to refuse the application." The proposed subclause aims to strengthen the requirements for substantive and procedural due process by mandating that theAuthorityinforms the applicantofanyrefusal togrant thelicense.
CommitteeObservations/Recommendations
73. The Committee agreedwith theproposal. 74. On clause 34,concerning thevariationofconditions ofalicense,theMinistryproposes to amend subclause (3) by deleting paragraph (d), which states "set out such further information as the authority may consider necessary."This deletion aims tolimit the authority's flexibility,which couldpotentiallybesubjectto abuse.
CommitteeObservations/Recommendations
75. TheCommitteeagreedwith theproposal. 76. On clause 35, regarding review, the Ministry proposes to (a) amend the marginal note to read "Review and Appeal" and (b) delete subclauses (1) and (2), replacing them with the following consolidated subclause: "(1) Any party aggrieved by the decision of the Authority under this Part may seek a review by the Authority or appeal to the Tribunal in accordance with this Act." Thisamendmentestablishesaninternal disputeresolutionmechanismto addressgrievancesin a timely and transparent manner,aimingto avoid lengthy and costlylitigation.
CommitteeObservations/Recommendations
77. The Committee agreedwith theproposal. 78. On clause 38, regarding enforcement sanctions, the Ministry proposes to insert a new paragraph (a)asfollows: 3. (2)A sanction issued may include 4. (a)Restricting a licensee from engaging in a specified activity. This proposed amendment introduces a useful sanction of restricting an activity as an enforcement measure for a violation,whichmayhavebeeninadvertentlyomitted in thepublishedbill.
CommitteeObservations/Recommendations
The Committee did not agree with this proposed amendment as the sa,e is speculative and notactual.
79. On clause 41, regarding the funds of the authority, the Ministry proposes to amend subclause (1)byreplacing theword"parliament"with"National Assembly."Additionally,subclause(2) should be deleted. These proposed amendments aim to harmonize the provision with the Public Finance Management Act by acknowledging the role of the National Assembly in managing funds and removing subclause (2),which is inconsistent with the PFMA.
CommitteeObservations/Recommendations 80.The Committee agreed with the proposal.
81. On clause 62, regarding incentives, the Ministry proposes to amend subclause (2) by deleting the words"addition to the incentives under subsection(1)," appearing at the beginning of the subclause. The proposed amendment aims to clarify that subclauses (1) and (2) are distinct and severableintermsofprovidingfortheincentivesthatextendtotheTechnopolises.
CommitteeObservations/Recommendations The Committee agreed to this amendment.
82. On clause 65, regarding the general penalty, the Ministry proposes to delete the clause in its entirety.Thisclauseisdeemedunnecessarybecauseallpenaltieshavebeenadequately addressed in the specific provisionswhere an offence has been created.
CommitteeObservations/Recommendations
- 83.The Committee agreed with the proposal.
4.2 Kenya Advanced Institute of Science and Technology (KENYA-AIST)
84. The Kenya Advanced Institute of Science and Technology (KENYA-AIST), submitted a memorandum REF:Kenya-AIST/PRI/12/Vol.1/1 dated 6thMay 2024,to the National Assembly. 2. 85.As an anchor tenant within the Konza Technopolis the Kenya Advanced Institute of Science and Technology, expressed its gratitude for the efforts of the National Assembly in drafting legislation to regulate the activities of Technopolis in Kenya.The institute proposed the following amendments to theTechnopolis Bill, 2024:
- i. Introduction of New Clause 7(A): providing that, the Board may co-opt any other assist the Board in discharging its duties and responsibilities; provided that the persons so co-opted shall have no voting rights. This will ensure the Board has the necessary skills and expertise to deliver onherresponsibilities.
- ii. Amendment to Clause 12(1)(b): The bill should be amended to include the phrase "who shall not have voting rights" at the end of Clause 12(1)(b). This amendment is crucial for clearly defining the role of the CEOinBoard meetings,including their lack of voting rights.
CommitteeObservations/Recommendations
- 86.The Committee agreed with the proposals.
4.3 GS1 Kenya
GS1 Kenya submitted a memorandum dated 6th May 2024, to the National Assembly. Additionally,they appeared before the Committee on 8thMay 2024, and submitted orally the followingtogetherwiththeirwrittensubmission:
- 87.That they agree with the establishment of aTechnopolis Authority to regulate future technopolisdevelopments.
- 88.Thatthefollowingbeconsidered forSection7oftheBill:
- a.That as a new concept in Section 7 (1) (e), be amended to allow the Cabinet Secretary the requirement expressed in Section 7 (3).
- b.That theBill includes the creation ofaSmart City Council bythePermanent Secretary in charge of the Technopolis Development Authority and the Technopolis Authority Board.The role of the Smart City Council should include but not limited to supervision and development of the city culture.(The Council should be composed of the Technopolis Authority staff and investor's representatives of that city).
- c.That the Smart City Council be chaired by a Technopolis DevelopmentAuthority Board member.
Committee Observations/Recommendations
- 89.The Committee disagreed with this view as it is too prescriptive and would introduce room for discrimination forprivate sectorplayerswho are notchosen to theBoard.
- 90.They also raised a concern with Section 67 of the Bill, where in their understanding they believe that there is Konza Smart City managed by KoTDA, but with the establishment of Technopolis DevelopmentAuthorityand revokingof KoTDA,does thismean thatKoTDA ceases tobe and if so,whatis thenewname of thecity.
4.4.Viscar Industrial Capacity Limited
ViscarIndustrial Capacity Limited submitted amemorandum 29thApril 2024,totheNational Assembly and submitted the following:
91. That they support the Technopolis Bill, 2024, for the following reasons: 2. a.That theBill institutionalizes the aspirations of Smart Cities inKenyawith Konza being the first.In turn, thiswill enhance the establishment of other smart cities in Kenya, resulting in smart management of urbanization.
- b. The Bill will ensure that Konza city overcomes the drawbacks of Government changes. By enacting a law to protect it, it becomes a part of our Constitution hence somethingthatmustbeobservedbyallKenyans.
4. 92.That the following be considered for incorporation in the Bill: 5. a.That KoTDA takeslead on matters smart cities in Kenya meaning the establishment of any other smart city or transforming existing cities into smart cities should be led by KoTDA. 6. b.That Konza city and any other smart city should be established with African/Kenyan heritage in consideration.This will help uphold our culture as well as provide opportunitiesforKenyans.
4.5 SoteHub
SoteHubsubmitted amemorandum29thApril 2024,to theNationalAssembly andsubmitted the following:
- 93.That theybelieve that Section 19 (f) will allow aTechnopolis to create synergies for co-creation, collaborationandinnovationwithinaTechnopolis.This is aninternational strategy towards the achievement of Kenya's vision tobe a globally competitive knowledge-based economy.
- 94.That theyrecommend thecreation of aStartupFundtoaddress thechallengeofinadequate funding. Konza's own study Konza's own study undertaken with UNDP funding titled Mapping the Innovation Ecosystem in Kenya (2022) - found out that some potential sources of fundinghavenotbeen adequately exploited byKenyan innovators.TheseincludetheAjira Youth Innovation Fund, Youth Enterprise Development Fund. The main reason is that the nature of these funds are targeting SMEs and not startups.
- 4.6.Huawei Technologies (Kenya) Company Limited Huawei Technologies (Kenya) Company Limited submitted a memorandum 30th April 2024, to theNationalAssembly and submitted thefollowing:
95. TechnopolisDevelopmentAuthority thatcan developKonza Technopolis as well as other technopolisesinthefuture.
Association of CountrywideInnovationHubs submitted a memorandum 23rdApril 2024,to the
- 4.7AssociationofCountrywideInnovationHubs National Assembly and submitted the following:
96. That they express enthusiastic support for the Technopolis Bill, 2024. They believe that this innovationecosystemsandpropelthecountrytowardsbecomingagloballycompetitive knowledge-based economy.
PARTFIVE
5.0 COMMITTEERECOMMENDATION
- 97.The Committee having considered the TechnopolisBill (National AssemblyBill No.6 of 2024) recommendsthattheHouse approve theBillwiththefollowingproposed amendments-
PART SIX
6 SCHEDULEOFPROPOSEDAMENDMENTS
LONGTITLE
THAT, the long title of the Bill,be amended by inserting the word"establishment"immediately after thewords"aframeworkforthe"
CLAUSE2
THAT,Clause 2 of theBill be amended—
- (a) in the definition of the term "high technology" by deleting the word "sophisticated" and substituting therefor the words"cutting edge";
- (b) by deleting the definition of the term "Technopolis" and substituting therefor the following new definition--
"Technopolis" means a designated geographical area with a high density of technologyoriented enterprises established withprimary objective of advancing research,science, technology, innovation, partnerships and economic growth and includes the Konza Technopolis;
CLAUSE5
THAT, Clause 5 of the Bill be amended by inserting the following new paragraphs immediately after paragraph (n) as follows-
"(na) coordinate and regulates business process outsourcing and information technology enabledservicessectorsinpartnershipwithrelevantstakeholders"
CLAUSE6
THAT, Clause 6 of the Bill be amended by —
" (ha) formulate legal, regulatory and appropriate guidelines for sustainable business process outsourcing".
CLAUSE7
THAT,Clause7of theBillbe amended—
- (a) in sub-clause (2) by deleting the word "fifteen" appearing immediately after the words " has
- (b) in sub-clause (3) by deleting the word "ten"appearing immediately after the words"has at least," appearing in paragraph (b) and substituting therefor the word, "five"; and
- (c)by inserting the following new sub-clauses immediately after sub-clause (5) as follows-"(6) In the appointment of members under 7(1)(e), the Cabinet Secretary shall ensure that andmarginalizedgroups;and
- "(7) The Board may co-opt any other person with necessary expertise as it considers it necessary to assist theBoard in dischargingits duties and responsibilities.
NEWCLAUSE7A
| Co-option ofmermbers to theBoard. | 7ATheBoardmayco-optanyotherpersonwith necessaryexpertiseandonatemporarybasisasit considers necessary to assist the Board in discharging its duties andresponsibilities. | |-------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
CLAUSE8
THAT,Clause8oftheBillbeamendedin—
- (a)sub-clause(1) by inserting the words"The Chairperson and"immediately before the words, "A member" appearing in paragraph (a); and
- (b)sub-clause(2)by inserting the words"The Chairperson and"immediatelybefore the words, "the member".
CLAUSE17
THAT, Clause 17 of the Bill be amended by inserting the following new paragraph immediately after paragraph (d)——
- "(da) host enterprises that address national and global challenges by utilizing research, science, technologyandinnovation."
CLAUSE24
THAT, Clause 24 of the Bill be amended by inserting the following new sub-clause immediately after sub-clause (5)
- "(5a)The authority shall notify the applicant of its decisions to refuse the application"
CLAUSE34
THAT, Clause 34 of the Bill be amended by deleting paragraph (e).
CLAUSE35
THAT,Clause35of theBillbeamendedby
- (a)deleting themarginal note and substituting therefor the following new marginal note "Review and appeal"
- (b)by deleting sub-clauses (1) and (2) and substituting therefore the following new sub-clause
- by theAuthority or appeal to the Tribunal in accordance with thisAct."
CLAUSE41
THAT, Clause 41 of the Bill be amended by inserting the following new paragraph immediately after paragraph (e)-
"(ea)restrictingalicenseefrom engagingina specified activity.
CLAUSE62
THAT, Clause 62 of the Bill be amended in sub-clause (2) by deleting the words"In addition to the incentives under subsection (1) appearing immediately after the words"cabinet Secretary."
CLAUSE64
THAT, that theBill be amended by deleting Clause 64.
DATE.
HON.JOHNKIARIE,MP
CHAIRPERSON DEPARTMENTALCOMMITTEEONCOMMUNICATION,INFORMATIONAND
INNOVATION
SIGNED....
Machine-extracted text (docling, extracted 11 Jul 2026) from a scanned document — may contain recognition errors. See the original PDF — parliament.go.ke.