By Gilbert Mmbaya
Konza Technopolis has received a major financial boost in the 2025/26 national budget, with the National Treasury allocating Shs. 3.1 billion for the development of a data center and smart city facilities at Kenya's flagship technology hub.
Speaking during the budget reading on June 12, 2025, Treasury Cabinet Secretary John Mbadi, in his first national budget presentation, said the allocation was aimed at fast-tracking infrastructure development at the Konza Technopolis. However, the amount reflects a reduction from the Shs. 5.2 billion allocated in the 2024/25 financial year for similar projects.
“We are committed to ensuring Konza achieves its full potential as Africa’s Silicon Savannah. These funds will support digital infrastructure and service delivery innovations at the heart of Kenya’s digital transformation,” said Mbadi.
Support for KAIST and ICT Ministry
In addition to the data center funding, the Treasury has allocated Shs. 2.3 billion for the continued construction of the Kenya Advanced Institute of Science and Technology (KAIST), located within Konza. This matches the amount allocated for the institution in the previous financial year.
Overall, the Ministry of Information, Communication and the Digital Economy received Shs. 12.1 billion, down significantly from the Shs. 16.3 billion allocated in 2024/25. The reduced budget comes amid growing pressure for the government to streamline spending and prioritize key strategic areas.
Other ICT Sector Allocations
The 2025/26 budget also included the following allocations aimed at driving Kenya’s digital transformation:
- Shs. 3.7 billion for the Kenya Digital Economy Acceleration Project
- Shs. 333.2 million for Government Shared Services
- Shs. 382 million for the Digital Superhighway initiative
- Shs. 689 million for the establishment of digital hubs across counties
- Shs. 750 million for maintenance and rehabilitation of the National Optic Fiber Backbone Infrastructure (NOFBI)
The Treasury further announced funding for inter-ministerial ICT projects, including the expansion of last-mile fiber optic connectivity, digitization of government services, and the rollout of an e-government procurement system.
Focus on Tax Digitization
CS Mbadi noted that the 2025/26 budget, which does not introduce new direct taxes, also places heavy emphasis on digitalizing tax administration through the Kenya Revenue Authority (KRA). Key systems being funded include:
- Auto-populated VAT returns
- Electronic Rental Income Tax System
- Forecourt Electronic Tax Invoice Management System (for petroleum sector integration)
- Expansion of the GAVA Connect platform to improve access to government tax services
Sectoral Allocation Highlights
The Education Ministry received the largest share of the budget with Shs. 702.7 billion, while the Energy, Infrastructure and ICT sectors combined were allocated Shs. 535.6 billion, up from Shs. 444.3 billion in the 2024/25 financial year. This signals the government’s intent to continue investing in foundational and futuristic sectors even as it seeks to stabilize the economy.
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