Kenya, South Korea ink Sh30.8 billion funding deal for Konza Digital Media City

Kenya and South Korea have signed two funding agreements amounting to US$238 million (Sh30.8 billion) for the financing of the Konza Digital Media City project.

Principal Secretary of Foreign Affairs Korir Sing'Oei said on Tuesday that the funds will be used to establish a film and creative economy hub at Konza Technopolis.

The signing took place on the sidelines of the Korea-Africa summit.

"On the sidelines of the Korea-Africa summit, the government of Kenya and Korea Exim Bank signed two funding agreements amounting to Sh30.8 billion," Sing'Oei said.

During the signing, the Kenyan Government was represented by PS Sing'Oei while South Korea was represented by Executive Director and Board Member Hwang Kiyeon of the Korea Exim Bank.

Last year in June, the government announced it would spend Sh15.1 billion to develop the digital superhighway as Kenya seeks to position itself as a unique creative economy hub destination.

Broadcasting and Telecommunications PS Edward Kisiang'ani said then that the ministry was seeking financial support from the private sector to develop the creatives further as they seek to leverage government facilities such as the digital superhighway and the Konza Technopolis Data Centre.

The Konza Technopolis project was initiated in 2012, following its commissioning in 2009 as a crucial component of Vision 2030 during the late President Mwai Kibaki's administration.

In 2008, the government approved the city's construction, and the Master plan for Phase One was developed in 2012.

Subsequently, significant milestones were achieved, such as the completion of the Kenya Electricity Transmission Company Limited (KETRACO) substation and ICTA fibre line in 2016, along with the construction of the First Konza Technopolis building in 2019.

The Kenyan delegation led by Principal Secretary of Foreign Affairs Korir Sing'Oei during a meeting with the Korean delegation led by Executive Director and Board Member Hwang Kiyeon of the Korea Exim Bank in Seoul, South Korea on June 4, 2024. (X/Korir Sing'Oei)

The smart city situated in Machakos was envisioned to include hotels, residential areas, schools, and hospitals, with the potential to generate thousands of job opportunities for the youth.

Ruto trip

President William Ruto left the country on Sunday evening for the Republic of Korea to attend the Korea-Africa Summit in Seoul.

During the summit, Africa and Korea are expected to discuss topics of mutual interest, such as trade promotion, industrialisation, infrastructure development, and job creation.

According to State House Spokesperson Hussein Mohamed, the discussions will also address agricultural productivity, climate change response, and the transition to carbon-free energy.

"The discussions will also cover agricultural productivity, climate change response, and transitioning to carbon-free energy," he said in a statement.

"These topics align with President Ruto's roles as the African Union Champion for Institutional Reform and the Chair of the Committee of African Heads of State and Government on Climate Change," Hussein added.

President Ruto is also expected to hold bilateral talks with President Yoon Suk Yeol to discuss the status of the Sh132 billion Framework Arrangement partnership, which was agreed upon during his previous visit in November 2022.

In multiple deals with various governmental and private sectors, Kenya will sign agreements worth Sh40 billion to create opportunities in Kenya's creative economy during his trip to Korea.

The trip, according to State House, will also rope in some Sh25 billion for water and irrigation projects.

"This partnership focuses on key projects including water and irrigation, agriculture, infrastructure, and the creative economy," Hussein added.

Several memorandums of understanding will also be signed during the visit to strengthen partnerships and collaboration in health, agriculture, and information and communication technology, among other sectors.

Kenya will also collaborate with South Korea to explore technology opportunities, including the development of its semiconductor industry.

In advancement on the vaccine front, Kenya is also set to join the International Vaccine Institute (IVI) to advance its vaccine manufacturing goals.

During the trip, Kenya and South Korea are expected to finalise a Labour Migration Programme, which could make Kenya one of the few African countries approved for labour supply under South Korea's Employment Permit System (EPS) Programme.

The trip will also pave the way for negotiations between Kenya and South Korea on an Economic Partnership Agreement (EPA).