Konza Technopolis After the Technopolis Act 2026

Foreign technology companies often ask whether to base their Kenyan operations at Konza Technopolis. The legal answer changed in May 2026, when the Technopolis Act, 2026 (Act No. 13 of 2026) replaced the order that created the Konza Technopolis Development Authority. This article sets out what the new Act says, what it carries over from the Special Economic Zones Act, and what a foreign founder should confirm before signing anything at Konza.

What changed in 2026

The President assented to the Technopolis Bill on 11 May 2026, and the Act is dated 15 May 2026. It establishes the Technopolis Development Authority as a body corporate (section 4) and revokes the Konza Technopolis Development Authority Order, 2012 (L.N. 23 of 2012) (section 67). The Authority has publicly said the change of name does not affect its obligations, assets, liabilities or its contracts with investors and tenants.

The Act also protects existing arrangements. Under section 66, the contracts, rights and liabilities of the former Authority vest in the new one, and any licence, permit or approval the former Authority gave is treated as issued under the new Act. A company that already holds a Konza permit does not start again.

The Act is wider than Konza. A Cabinet Secretary may establish a technopolis by notice in the Kenya Gazette, defining its geographical area and any buffer zone (section 16). Konza Technopolis itself is defined in the Act by reference to Land Reference Number 9918/6, measuring about 2,023.6 hectares.

Do you need a licence to operate there?

Yes, unless you are exempt. Section 29 lets a person apply for a licence to operate or carry out business activities in a technopolis. The Authority may exempt three groups: a start-up focusing on technology in its initial operational phase, a person in a collaborative or research partnership with the Authority, and anyone else the regulations specify. Operating without a licence or an exemption is an offence carrying a fine of up to KES 5 million, imprisonment of up to five years, or both.

The process runs under sections 30 to 32. You apply in the prescribed form with the prescribed fee. The Authority may issue different classes of licence with different validity periods, and it may grant a licence with conditions. It may grant the licence, with or without conditions, within thirty days. If it refuses, it must notify you within fourteen days, and the grounds include false information or failure to meet the prescribed requirements. Disputes go to the Technopolis Dispute Resolution Tribunal created by Part VIII of the Act.

The prescribed forms, fees and licence classes sit in regulations. Ask the Authority which licence class matches your activity, and which exemption, if any, applies to you, before you budget for it.

What incentives apply

Section 63 does two things. First, any incentive granted for a special economic zone under the Special Economic Zones Act (Cap. 517A), or any other written law, applies to the Authority and to any person in a technopolis. Second, the Cabinet Secretary may by Gazette notice grant further incentives to investors operating in a technopolis.

The incentives themselves come from the Special Economic Zones Act. Under section 35, licensed special economic zone enterprises, developers and operators get the tax incentives set out in the tax laws, exemption from stamp duty on instruments relating to their business activities, and the exemptions the section lists from several other licences and levies. They are also entitled to work permits for up to twenty per cent of their full-time employees. The tax and other incentives last for a period not exceeding ten years from the date the licence is issued.

Two cautions follow. The Technopolis Act does not state a tax rate, so the tax figures you hear in marketing material must be checked against the Income Tax Act and the current Finance Act. The Act also says the incentives apply “to” a technopolis, but whether a particular enterprise holds a special economic zone licence, and on what terms, is a question about your own licence, not about Konza in general. In practice, ask for the licence in writing and read its conditions.

Konza or Nairobi?

Konza is a legal and commercial choice, not just a postcode. Weigh these points:

• Licence cost and conditions at Konza against the ordinary business permits you would hold in Nairobi.
• Whether your incentive period starts when the licence is issued, since the ten-year clock runs from issue and not from first revenue.
• Whether your staff are willing to work from Konza, and whether your clients, schools or investors expect a Nairobi address.
• Whether you meet the exemption for a start-up in its initial operational phase, which may remove the licence requirement for a time.

The Kenyan company structure, tax registration and work permits are the same whichever you pick. A foreign parent still needs to decide between a subsidiary and a branch, and its founders still need the right permit class.

Frequently asked questions

This article is general information on Kenyan law as at its publication date, not legal advice. Reading it does not create an advocate and client relationship.