CS Kabogo proposes removal of wayleave fees to speed up fibre expansion

The government is considering doing away with wayleave charges in a bid to fast-track the rollout of digital infrastructure, a move that could open a new confrontation with county governments.

ICT Cabinet Secretary William Kabogo said the proposal is aimed at removing hurdles that have slowed the installation of fibre networks and other internet-related facilities.

Kabogo made the remarks at the groundbreaking of Airtel’s Sh19.35 billion NXTRA data centre in Nairobi, noting that eliminating the charges would boost investor confidence.

“Together with the cabinet, we are working with the county governments to remove investment bottlenecks set by counties such as way leaves, so that Kenya becomes desirable for investments,” Kabogo said.

The issue of wayleave fees has been contentious, with state agencies and counties frequently clashing.

Earlier this year, Kenya Power was hit with a Sh5.13 billion bill, intensifying the long-running dispute.

At the same time, the Senate has introduced the Energy (Amendment) Bill, 2025, which, if passed, will allow counties to impose such levies on Kenya Power and other state entities without needing clearance from the Energy and Petroleum Cabinet Secretary.

Kabogo stressed that projects like the 44MW Airtel NXTRA facility will be critical in driving the country’s digital shift.

NXTRA CEO Yashnath Issur said collaboration among data centre operators will be necessary if Kenya and Africa are to realise the benefits of emerging technologies. “Data centres are not just about rivalry. They must work together to guarantee reliability and scale for the new generation of services such as AI, cloud computing, and fintech,” he said.

“Only through a mix of players – local and global – can we create the ecosystem that will allow Kenya to thrive as a digital hub for East Africa.”

The Nairobi data centre, set to be the largest in East Africa, will deliver scalable connectivity, processing and storage for enterprises, small businesses and cloud service providers. The first phase of the $150 million (Sh19.38 billion) investment is dedicated to advanced cooling systems, power supply and critical infrastructure.

Airtel Kenya managing director Ashish Malhotra said the facility will ease the burden of upfront IT expenses by allowing businesses to rent capacity instead of buying their own. This, he added, will free up resources for expansion and innovation.

Issur further explained that the project will create quality employment opportunities as more global technology companies expand operations into Kenya. “For too long, African digital services were run from servers outside the continent. We are now bringing that capacity home, creating opportunities for Kenyan talent to build and manage the infrastructure of tomorrow,” Issur said.

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