THE KONZA TECHNOPOLIS DEVELOPMENT AUTHORITY BILL ARRANGEMENT OF CLAUSES Clause PART 1- PRELIMINARY 1-Short Title and Commencement

2-Interpretation PART II- ESTABLISHMENT OF THE KONZA TECHNOPOLIS AND THE AUTHORITY 3-The Konza Technopolis 4-The Authority 5- Objective of the Authority 6- Functions of the Authority 7- Powers of the Authority 8- Board of directors of the Authority 9- Appointment, revocation and resignation of Board members 10- Powers of the Board 11- Conduct of business and affairs of the Board 12- Seal and execution of Documents 13- Staff and servants of the Authority 14- Delegation of the Authoritys functions and powers PART III- CHIEF EXECUTIVE OFFICER, OFFICERS AND OTHER STAFF OF THE AUTHORITY 15- Chief Executive, officers and other staff of the Authority 16- Employment of other officers and servants of the Authority 17- Authoritys funds 18- Returns and reports 19- Bank accounts 20 - Power to borrow 21- Expenditure

22 Financial year 23 Protection from personal liability 24- License to Operate 25- Application and Issue of License 26- Licensing Qualifications 27- Register of Licenses 28- Benefits and Incentives 29- Exemption from Taxes 30- Exclusion from the provisions of the State Corporations Act 31- Exclusion from the provisions of the Urban Areas and Cities Act 32- Exclusion from the provisions of the Physical Planning Act 33 Transitional and savings provisions 34- Power to make regulations Schedule 1 Schedule 2 Schedule 3

THE KONZA TECHNOPOLIS DEVELOPMENT AUTHORITY BILL A Bill for AN ACT of Parliament to provide for the establishment of an urban area designated the Konza Technopolis and to provide for the establishment of an authority to regulate the development, governance, planning, management improvement and maintenance of the Konza Technopolis and for matters connected therewith and incidental thereto. ENACTED by the Parliament of Kenya, as followsPART 1- PRELIMINARY
Short Title and Commencement

1. This Act may be cited as the Konza Technopolis Development Authority Act, 2013 and shall come into operation on such date as the Cabinet Secretary may by notice in the Gazette, appoint. 2. In this Act, unless the context otherwise requiresAuthority means the Konza Technopolis Development Authority established under section 4; Board means the board of directors of the Authority; Cabinet Secretary means the Cabinet Secretary for the time being responsible for matters relating to information technology and communications; Chairperson means the person appointed under subsection 8(1) as the chairperson of the Board; Chief Executive Officer means the chief executive officer of the Authority appointed under section 15; Land means all that parcel of land known as Land Reference Number 9918/5 located within Makueni County measuring approximately 2023.6 hectares which shall include a buffer zone of ten (10) kilometers radius and such other land as the Authority may from time to time acquire Master Development Plan means the master development plan for the purpose of guiding, controlling, regulating and coordinating the orderly development of Konza Technopolis prepared by the Authority pursuant to sections 6(1) and 7(1); PART II - THE KONZA TECHNOPOLIS AND THE AUTHORITY

Interpretation

The Konza Technopolis

Prescribe means prescribe by regulations; 3. There is hereby established over the Land an urban area known as the Konza Technopolis over which there shall be developed and maintained technology, industrial, commercial, civic, educational, residential, recreational, and other related and incidental facilities and infrastructure under the direction and management of the Authority. 4. (1) There is hereby established an authority to be known as the Konza Technopolis Development Authority. (2) The Authority shall be a body corporate with perpetual succession and a common seal, and which shall be capable in its corporate name of-

The Authority

(a) suing and being sued; (b) owning, taking, purchasing or otherwise acquiring, holding, charging and disposing of movable or immovable property; (c) receiving, borrowing and lending money; (d) entering into contracts; (e) doing or performing all such other things or acts for the proper performance of its functions under this Act which may lawfully be done or performed by a body corporate. (3) Subject to the provisions of this law, the Konza Technopolis shall be developed and maintained under the direction and management of the Authority.
Mission of the Authority

5. The mission of the Authority is to develop, manage and maintain the Konza Technopolis and to ensure that it grows into a sustainable, world-class technology hub and a major economic driver for Kenya, with a vibrant mix of businesses, workers, residents, and urban amenities. 6. The functions of the Authority shall be to(1) prepare, implement and update the Master Development Plan for the Konza Technopolis including managing the Land, causing surveys to be made and survey plans prepared in respect of the Land; (2) regulate, control and administer the development of the Konza Technopolis including the development of technology, industrial, commercial, civic, educational, residential, recreation and other related and incidental facilities and infrastructure; (3) collect public and private funds and spend them in a flexible manner at its discretion in order to carry out its mission and functions; (4) facilitate the setting up and conduct of business in Konza Technopolis by providing one-stop licensing of potential investors and providers of services in Konza Technopolis; (5) identify, map and make available to investors and developers land in the Konza Technopolis by way of lease, sub-lease, sale, licence or such other means and at such rental, price or fee, as the case may be, as the Authority shall in its discretion determine; (6) cause, procure, either by itself or through public, private or public-privatepartnerships, the development, construction, operation and maintenance of infrastructure and supportive facilities in Konza Technopolis including but not limited to roads, railways, sidewalks, bridges, tramways, tunnels, water courses, parks and recreation facilities; (7) cause, procure, and if necessary finance, either by itself or through public, private or public-private-partnerships, the development, construction, operation, provision and maintenance in Konza Technopolis, as the case

Functions of the Authority

may be, of water, electricity, gas, telecommunications, sewage, sanitation, fire-fighting infrastructure, facilities and services; (8) develop and determine the criteria for selection of investors and providers of services in Konza Technopolis; (9) develop and determine the criteria on the basis of which land will be made available to investors and any other users in Konza Technopolis; (10) conduct inquiries, carry out surveys, collate, analyse and publish data, information and factors influencing or relevant to development, business or investment and to disseminate such data, information and factors to investors or potential investors, whether local or foreign in the Konza Technopolis ; (11) regulate and administer incentives in relation to taxes, customs and excise duties and other fiscal and regulatory incentives that should be provided to investors and developers in the Konza Technopolis; (12) promote, stimulate, facilitate and undertake in Konza Technopolis, either by itself or through public, private or public-private-partnerships (a) economic and social development; (b) the development of infrastructure as well as technology, industrial, commercial, and residential development; (c) the development of art, culture, sport, civic, and recreational activities; (d) public education including the development of educational facilities; and (e) public health including the development of health and medical facilities; (13) promote private, public and public-private-partnership investments in Konza Technopolis; (14) plan, phase and co-ordinate the implementation of such policies, projects, programmes and activities within Konza Technopolis as are deemed by the Authority to be of strategic importance to Konza Technopolis; (15) cause the development and implementation of policies, programmes and projects for the protection, conservation and preservation of wild animals and other natural resources within the Konza Technopolis; (16) promote the opportunities for investment in Konza Technopolis both internationally and locally; (17) act as the focal point for coordination of national and relevant county governments and other government agencies in respect of matters relating to Konza Technopolis and the surrounding areas; (18) carry out any other function conferred by or under this Act and to perform any other functions that are supplemental, incidental or consequential to

any of the functions specified in this Act.

7. Subject to and for the purposes of this Act, the powers of the Authority shall include power to(1) prepare, update, implement and enforce the Master Development Plan; (2) regulate, control, guide, co-ordinate and promote the development, either by itself or through public, private or public-privatepartnerships, of infrastructure, buildings and public amenities and facilities in Konza Technopolis; (3) collect public and private funds, treat all funds as fungible, and spend funds in a flexible manner in order to carry out its mission and functions; (4) develop, make, implement and enforce, as the case may be, policies, rules, regulations and guidelines for the sustainable development, management and maintenance of the Konza Technopolis; (5) control, regulate, coordinate and guide land use, land sub-division, land development and zoning by public and private sectors for any purpose including industry, commerce, markets, shopping and other employment centres, residential areas, recreational areas, parks, entertainment, passenger transport and freight and transit stations within the framework of the Master Development Plan; (6) directly or indirectly attract and invite persons , whether local or foreign, wishing to make investments and/or conduct business in Konza Technopolis; (7) receive, consider and make decisions on applications made by persons wishing to make investments and/or conduct business in Konza Technopolis; (8) license and register investors and businesses in Konza Technopolis and charge such licence fees as the Authority shall prescribe; (9) provide a one-stop centre through which persons wishing to invest and or conduct business in the Konza Technopolis may apply for any permits, approvals, consents and licences required under this Act or any other written law and coordinate with the relevant Government agencies in the processing and issuance of such permits, approvals, consents and licences; (10) employ such staff, consultants, technical advisers, experts and contractors as the Authority may require for the purposes of carrying out its functions under this Act; (11) acquire, hold, lease, licence, sell, exchange or otherwise dispose of or deal withland and other property within Konza Technopolis or elsewhere on such terms and conditions, including but not limited to payment of rentals, licence fees and such other payments, as the Authority shall determine;

(12) make land in the Konza Technopolis available to persons wishing to invest and/or conduct business in Konza Technopolis by way of lease, sale, licence or such other means and on such terms and conditions, including rental, price or licence fee, as the case may be, as the Authority shall determine; (13) construct, erect and repair water, electricity, gas, telecommunications, sewage, sanitation, roads and other municipal and infrastructural facilities and provide the related services thereof; (14) enter into concessions or any other public-private partnerships for the provision of the services and infrastructure referred to in subsection 7(13) above; (15) charge and collect licence fees, rents, user fees and other revenues relating to its provision of land, facilities, infrastructure and services and pursuant to the proper carrying out of its functions under this Act; (16) cause, procure, either by itself or through public, private or publicprivate-partnership funding the development, construction, operation and maintenance of such roads, railways, sidewalks, tramways, bridges, tunnels, reservoirs, water courses, buildings, plants and machinery and such other infrastructure and works as may be necessary for or conducive to the discharge of its functions; (17) invest in the development of Konza Technopolis revenues generated from the rents, licence fees, user fees and other monies generated or received by the Authority in the course of its carrying its functions under this Act; (18) invest monies standing to the credit of the Authority and not for the time being required for the purposes of its functions in such securities or in such other manner as the National Treasury may approve; (19) purchase or otherwise lawfully acquire, take over or dispose any assets, business, property, privilege, contract, right, obligation and liability of any person or body whether corporate or incorporate in furtherance of its functions; (20) with the prior written consent of the National Treasury, borrow capital funds for the purposes of carrying its functions under this Act; (21) enter into contracts or partnerships with any person or body whether corporate or incorporate which in the opinion of the Authority will facilitate the discharge of its functions; (22) train managerial and technical staff for the purpose of ensuring efficient and effective discharge of its functions; (23) undertake such studies and research as may be necessary for the performance of its functions ; (24) engage such person or persons, as are necessary or expedient for giving full effect to the provisions of this Act; (25) regulate the construction of commercial, industrial and recreational

buildings and facilities by investors, public authorities and private developers including determining the time within which such construction should be completed; (26) make recommendations to the National Treasury on appropriate fiscal tax and other investment incentives that the Authority deems necessary to encourage private sector investment and participation in the development of Konza Technopolis.
Board of directors of the Authority

8. The Authority shall be managed by a board of directors consisting of the following persons(1) a chairperson who shall be appointed by the President from amongst persons with specialist knowledge and distinguished experience in matters relating to information and communications technology, economics, trade, finance, business administration, manufacturing and other industrial production, applied industrial research and development or law; (2) Principal Secretary of the Ministry for the time being responsible for matters relating to information technology and communications or his designated alternate; (3) the Principal Secretary responsible for the administration of the National Treasury or his designated alternate; (4) the Governor of the Makueni County or his designated alternate; (5) A representative from the Architectural Association of Kenya; (6) four persons, not being public officers, appointed by the Cabinet Secretary, on the recommendation of and following a competitive recruitment process conducted by a private and independent recruitment agent, by virtue of their specialist knowledge and distinguished service and experience of at least ten (10) years in matters relating to information and communications technology, economics, trade and finance, business administration, manufacturing and other industrial production, applied industrial research and development or law; (6) The Chief Executive Officer who shall be an ex-officio member.

Appointment, revocation and resignation of Board members

9. (1) A member of the Board appointed pursuant to subsections 8(1) or 8(6) shall, subject to such conditions as may be specified in his instrument of appointment, hold office for a term not exceeding four years and shall be eligible for reappointment for one further term. Members of the Board shall be appointed at different times so that the respective expiry dates of their terms of office shall fall at different times; (2) The appointment of any member of the Board pursuant to subsections 8(1) and 8(6) may at any time be revoked by the President or the Cabinet Secretary, as the case may be, if the member: (a) is guilty of any improper conduct; or (b) is incapacitated by prolonged physical or mental illness for a period exceeding four months; or

(c) is unable or unfit, for any other reason, to discharge the duties of his office. (3) any member of the Board appointed under section 8 (5) shall cease to hold office(a) upon the expiry of his term of appointment; (b) upon the expiry of one month, or such shorter period as may be agreed, after the date upon which the Cabinet Secretary receives a written notice, signed by the member, of his intention to resign; (c) if he is absent without the permission of the Authority from three consecutive meetings of the Authority of which he has had reasonable notice; (d) if he has been convicted on a charge in respect of(i) an offence involving fraud, dishonesty or moral turpitude and/or an offence under any law relating to corruption; or

(ii) any other offence punishable with imprisonment (in itself only or in addition to or in lieu of a fine). (e) if he is adjudged bankrupt or enters into a composition scheme or arrangement with his creditors;

(f) if he is of unsound mind or is otherwise incapable of discharging his duties. (4) The members of the Board shall be paid by the Authority in consultation with the Cabinet Secretary such remuneration and allowances out of the funds of the Authority as may be determined from time to time
Powers of the Board

10.(1) The Board shall have all powers necessary for the proper performance of the functions of the Authority under this Act. (2) Without prejudice to the generality of the foregoing, the Board shall have power to(a) control, supervise and administer the assets of the Authority in such manner as best promotes the purpose for which the Authority is established; (b) determine the provisions to be made for capital and recurrent expenditure and for the reserves of the Authority; (c) receive any grants, gifts, donations or endowments and make legitimate disbursements therefrom; (d) open such banking accounts for the funds of the Authority as may be necessary; (e) invest any of the funds of the Authority not immediately required for its purposes in the manner provided in subsections 7(15) and (16);

(f) perform all such other acts or undertake any activity as may be incidental or conducive to the attainment or fulfillment of any of the functions of the Authority under this Act.
Conduct of business and affairs of the Board

11.(1)The conduct and regulation of the business and affairs of the Board shall be as set out in Schedule 1. (2) Subject to the provisions of Schedule 1, the Board may determine its own procedure and the procedure for any committee of the Board and for the attendance of other persons at its meetings or those of a Board committee and may make standing orders in respect thereof.

Seal and execution of documents

12.(1) The common seal of the Authority shall be kept in the custody of the Authority and shall not be affixed to any instrument or document except as may be generally or specifically authorised by the Board. (2) The common seal of the Authority shall be authenticated by the signature of the Chief Executive Officer and the Chairperson or of one other member of the Board authorized by the Board on their behalf. (3) All documents, other than those required by law to be under seal and all decisions of the Board, may be authenticated by the signature of the Chairperson or, in the case of a decision taken at a meeting at which the Chairperson was not present, by the signature of the person presiding at such meeting. (4) The Board may appoint such committees, whether of its own members or otherwise, as it may think necessary but no decision of any such committee shall be effective unless it has been confirmed by the Board.

Staff and servants of the Authority

13.(1) The Authority may appoint, upon such terms and conditions of service as it thinks proper, such officers and servants as it considers necessary or desirable for the efficient conduct and operation of its functions and affairs. (2) The officers and servants appointed under subsection (1) shall(a) subject to this Act, exercise the powers and functions and perform the duties assigned to them from time to time by the Chief Executive Officer; and (b) be paid out of the funds of the Authority in such manner and at such rates, and shall be subject to such conditions of service, as may be determined by the Authority.

Delegation of the Authoritys functions and powers

14.(1) The Board may, in writing, delegate the exercise of any of the powers or the performance of any of the functions of the Authority under this Act other than its powers to borrow money, to raise loans or to make subsidiary legislation, to(a) the Chairperson; (b) the Chief Executive Officer; (c) a committee of the Board.

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(2) A person or a Board committee or an officer as the case may be, delegated with such function or power shall be bound to observe and have regard to all conditions and restrictions imposed by the Board and all requirements, procedures and matters specified by the Board in respect of such delegation of function or power. (3) Any function or power delegated under this section shall be performed and exercised in the name and on behalf of the Authority. (4) A delegation under this section shall not preclude the Authority itself from performing or exercising at any time any of the delegated functions or powers. PART III - CHIEF EXECUTIVE, OFFICERS AND OTHER STAFF OF THE AUTHORITY
Chief executive, officers and other staff of the Authority

15.(1) There shall be an officer of the Authority, to be known as the Chief Executive Officer, who shall be appointed by the Board on such terms and conditions as the Board shall determine and who shall be responsible for the execution of the policy of the Authority and for the control and management of the day-to-day business of the Authority. (2) No person shall be appointed to as Chief Executive Officer unless such person(a) possesses a p o s t g r a d u a t e degree from a recognized institution and has a least ten (10) years working experience in a senior position in matters relating to information communications technology, manufacturing and industrial production, economics, trade, finance or business administration; and (b) satisfies the requirements of Chapter 6 of the Constitution. (3) The Chief Executive Officer shall be the Secretary to the Board. (4) Without prejudice to the generality of subsection (1) the Chief Executive Officer shall be responsible for(a) the general conduct, administration and management of the functions, activities and day to day affairs of the Authority; (b) the preparation of programs, consideration of the Authority; schemes and projects for the

(c) the execution of all programs, schemes and projects of the Authority; and (d) the carrying out of the decisions of the Authority. (5) The Chief Executive Officer shall have general control of the officers and servants of the Authority. (6) The Chief Executive Officer shall perform such further duties as the Board may, from time to time, direct. (7) In discharging his duties, the Chief Executive Officer shall act under the

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general authority and direction of the Board.

16.(1) The Board may, from time to time and on the recommendation of the Chief Executive Officer, appoint other officers and employees as it deems necessary upon such terms and conditions as it deems proper for the efficient operation of the Authority. (2) No person shall be eligible for employment as an officer or servant of the Authority if he has, directly or indirectly, by himself or through his partner, any share or interest in any contract or proposed contract with, for or on behalf of the Authority.

Authoritys funds

17.(1) The funds of the Authority shall consist of(a) such monies as may from time to time be provided by Parliament for the purpose of enabling the Authority exercise its powers and perform its functions under this Act; (b) such monies or assets as may accrue or vest in the Authority in the course of the exercise of its powers or the performance of its functions under this Act including but not limited to licence fees, user fees, rents and any other monies accruing to the Authority under this Act; (c) all monies borrowed by or lent to or donated to the Authority ; and (d) any monies accruing to the Authority from any other source. (2) Subject to the provisions of this Act or any other law, the Authority shall have the power to use the funds of the Authority in its discretion so as to carry out its objective and functions. (3) The Authority shall cause to be kept all proper books and records of account of income, expenditure, assets and liabilities of the Authority. (4) At the end of each financial year the accounts of the Authority shall be audited by the Auditor-General or an auditor appointed by the Board with the approval of the Auditor-General. (5) At the completion of an audit under this section the auditor shall make a report thereon to the Authority and shall at the same time furnish a copy of thereof to the Cabinet Secretary.

Returns and reports

18.(1) The Authority shall furnish to the Cabinet Secretary, such returns, reports, accounts and information with respect to its property and activities as the Cabinet Secretary may, from time to time, require or direct. (2) Without prejudice to the generality of subsection (1), the Authority shall, within three months after the end of each financial year, cause to be made and transmitted to the Cabinet Secretary a report dealing with the activities of the Authority during the preceding financial year. (3) The report under subsection (2) shall be in such form and shall contain such information relating to the proceedings and policy of the Authority as the Cabinet Secretary may, from time to time specify.

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Bank accounts

19.The Authority shall open and maintain bank accounts in such banks in Kenya as the Authority may deem fit, and every account shall be operated upon as far as practicable by cheques signed by any person as may be authorised by the Board for such purpose from time to time. 20.(1) The Authority may from time to time, with the approval of the National Treasury, borrow, at such rate of interest and for such period and upon such terms as to the time and method of repayment and otherwise as the National Treasury may approve, any sums required by the Authority for meeting any of its obligations or discharging any of its duties under this Act. (2) The Authority may from time to time, with the approval of the National Treasury, borrow money by the issue of bonds, debentures, stock or similar securities and upon such terms as it may, with the approval of the Cabinet Secretary, deem expedient, for all or any of the following purposes: (a) the provision of working capital; (b) the performance of the functions, the exercise of the powers and the discharge of the duties of the Authority under this Act; (c) the performance of such additional functions as may be undertaken by the Authority under this Act; (d) the redemption of any shares, debentures, stock or other securities which the Authority is required or entitled to redeem; and (e) any other expenditure properly chargeable to capital account.

Power to borrow

Expenditure

21.(1) The following charges shall be defrayed out of the funds of the Authority for any financial year; (a) the remuneration and allowances of the Chairperson, the Secretary and members of the Board ; (b) the salaries, remuneration, fees and allowances, pensions and gratuities of the staff, agents, technical and other advisers or consultants of the Authority; (c) all expenses related to the working and management of the Authority and its projects and other properties including proper provision for depreciation, wear and tear or renewal of assets; (d) such sums including compensation as may be payable by the Authority; (e) taxes, rates and levies payable by the Authority under any law; (f) interest on loans raised by or on behalf of the Authority; (g) sums required to be transferred to any sinking fund, or otherwise set aside for the purpose of making provision for the redemption of securities or repayment of loans; and (h) such other sums as the Authority may approve for payment out of the

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revenue account of the Authority in respect of any financial year.

22.The financial year of the Authority shall be the period of twelve months ending on the thirtieth of June in each year. 23.(1) The staff of the Authority shall not be personally liable for an act which is done or purported to be done in good faith on the direction of the Authority or the Board in the performance or intended performance of any duty or in the exercise of any power under this Act or the regulations made thereunder. (2) Any expenses incurred by a person referred to in subsection (1) in any suit or prosecution brought against him before any court in respect of any act which is done or purported to be done by him under this Act on the direction of the Board shall, if the court holds that that act was done in good faith shall be paid out of the general funds of the Authority, unless the expenses are recovered by him in that suit or prosecution. (3) The provisions of this section shall not relieve the Authority from liability in tort or contract, to pay compensation or damages to any person for any injury to him, his property or any of his interests caused by the exercise of any power conferred by this Act, or any other written law. REGULATORY PROVISIONS

Protection from personal liability

Licence to operate in Konza

24.(1) No person shall(a) carry on business in the Konza Technopolis; or (b) hold himself out as providing or maintaining activities or facilities within the Konza Technopolis except under and in accordance with a licence issued under this Act. (2) Any person who contravenes the provisions of subsection (1) commits an offence and shall be liable on conviction to a fine not exceeding five million shillings or to imprisonment for a term not exceeding five years or to both.. 25 (1) A person who intends to invest in and/or carry on business in the Konza Technopolis shall apply, in the prescribed form, to the Authority for an appropriate licence or for a renewal of the licence. (2) The Authority shall evaluate an application submitted pursuant to subsection (1) on such criteria as the Authority shall determine including but not limited to the nature of the investment the applicant intends to make and/or the business the applicant intends to undertake, the financial capability of the applicant and the economic, social and environmental impact of the applicants proposed business. (3) The Authority shall consider and make its decision on an application for a licence within a period of thirty days from the date on which the completed application form together with relevant supporting documents from the licence has been received by the Authority.

Application and issue of licence

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(4) The Authority shall issue the licence or renewal of a licence pursuant to subsection (1) upon payment by the applicant of a prescribed licence fee. (5)A licence issued under this section shall(a) be in the prescribed form; (b) authorise the licensee to carry on business as in the Konza Technopolis; (c) specify the business to be carried on under the license; (d) specify the validity period; (e) contain such other conditions as the Authority shall determine from time to time; and (f) provide that the licensed entity may derive such benefit from the list thereof inSchedule 3 as the Authority, in its discretion, may grant in the license.. . (6) A licence issued under this section may(a) be modified at any time on written notice to the holder by the Authority, if in the Authoritys opinion the modification is necessary for the purposes of achieving the mission of the Authority, provided that the Authority shall invite the licensee to file any written representations as necessary before the final decision is made; (b) be suspended or revoked by the Authority if the holder fails to comply with the conditions contained in the licence or laid down in this Act or in any regulations made hereunder. 26.(1) Without prejudice to the generality of section 25(3), an applicant for a licence to carry on business in the Konza Technopolis shall:(a) be a limited liability company incorporated in Kenya (whether or not it is one hundred per cent foreign owned), [a Kenyan registered branch of a foreign company, or a partnership registered in Kenya] with the purpose of undertaking the activity sought to be undertaken in the Konza Technopolis1; (b) have the financial capacity; technical and managerial expertise required for developing or operating the business sought to be carried on in the Konza Technopolis; (c) own or lease land for a minimum period of thirty years o r s u c h other period of time as the Board may determine to b e s u i t a b l e , within the Konza Technopolis.

Licensing Qualifications

27.(1) The Authority shall keep in such form as it considers appropriate, a register of the holders of existing licences issued under this Act specifying(a) the name of the licence holder;

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GoK may wish to consider whether or not to open up investments to any kind of legal entity e.g. a branch of a foreign company

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(b) the address of the principal place at which the licence holder carries on business (2) WhereRegister of licences

(a) the holder of the licence ceases to carry on the business to which the licence relates; or (b) a change occurs in any particulars which are required to be entered in the register of licence holders with respect to the holder of a licence, the holder shall within fourteen days of the cessation of business or occurrence of the specific event leading to change in particulars notify the Authority of such particulars or change in the prescribed form.

Benefits and incentives

28. Persons licensed to operate in the Konza Technopolis and engaged in the businesses set forth in Schedule 2 hereto may be granted any or all of the exemptions and incentives set forth in Schedule 3 as the Authority may, in its sole discretion, deem fit and such benefits will be stated in the licence granted to such Person by the Authority. 29. (1) The Authority shall be exempt from all existing and future taxes and duties payable under the laws of Kenya2. (2) Any document entered into by the Authority (including, without limitation, any lease granted by the Authority), shall be exempt from any stamp duty under the Stamp Duty Act 30. The provisions of the State Corporations Act shall not apply to the Authority.

Exemption from Taxes

Exclusion of the provisions of the State Corporations Act Exclusion of provisions of the Urban Areas and Cities Act Exclusion of the Provisions of the Physical Planning Act Transitional and savings provisions

31.The provisions of the Urban Areas and Cities Act shall not apply to the Konza Technopolis.

32- The provisions of the Physical Planning Act shall not apply to the Konza Technopolis.

33.In this section (1) appointed day means the day on which the Act shall come into force; and (2) KOTDA means the Konza Technopolis Development Authority established under the Konza Technopolis Development Authority Order, 2012 existing immediately before the appointed day. (3) The Authority shall be the successor to KOTDA and subject to this Act, all rights, duties, obligations, property (movable and immovable) and other assets and liabilities of KOTDA existing on the appointed day shall vest and be automatically and fully transferred to the Authority. (4) Every public officer having the power or duty to effect or amend any entry in a register relating to property or to issue or amend any certificate or other document effecting or evidencing title to property, shall, without payment of a fee or other charge and upon request made by or on behalf of the Authority, do

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all such things as

are by law necessary to record the vesting and transferring of

Treasury to confirm

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the property mentioned in subsection (1). (5) On the appointed day, all rights, powers, liabilities and duties, whether arising under any written law or otherwise, which immediately before the appointed day were vested in, imposed on or enforceable by or against KOTDA shall, by virtue of this section, be transferred to, vested in, imposed on or become enforceable by or against the Authority. (6) Any existing contracts, agreements, conveyances, deeds, leases, licences, permits, exemptions, power of attorney, undertakings, securities and other instruments, whether analogous to the foregoing or not, entered into by, made with or granted or addressed to KOTDA whether alone or with any other person and whether as principal or agent, shall as from the appointed day, be binding and of full force and effect in every respect against or in favour of the Authority as if, instead of KOTDA, the Authority had been a party thereto, bound thereby or entitled to the benefit thereof and as if any reference, express or implied to any director, officer or employee of KOTDA as respects anything to be done on or after the appointed day , were substituted a reference to the director, officer or employee of the Authority who nearly corresponds thereto. On and after the appointed day, all actions, suits or legal proceedings pending by or against KOTDA shall be carried on or prosecuted by or against the Authority. (7) All directors of KOTDA in office on the appointed day shall cease to be such directors unless otherwise appointed as directors pursuant to the provisions of section 8. (8) Any person who is employed by KOTDA immediately before the appointed day shall on that day become an employee of the Authority on the same terms and conditions of service as his/her existing terms and conditions and subject to any subsisting notice of termination, resignation and variation, and such employment with KOTDA and the Authority shall be deemed to be continuous.

Regulations

34.(1) The Authority may, in consultation with the Cabinet Secretary, make such regulations as may be expedient or necessary for the better carrying out of the provisions of this Act or for prescribing anything that may be, or is required to be, prescribed under this Act. (2) Without prejudice to the generality of subsection (1), regulations may be made for(a) the regulation, governance, planning and administration of Konza Technopolis and generally providing for the orderly development, planning and construction of land, infrastructure, buildings and other facilities in Konza Technopolis; (b) prescribing the manner in which documents, cheques and instruments of any description shall be signed or executed on behalf of the Authority; (c) the imposition or levying of fees, costs, levies, contributions or any other charges in such cases as may be determined by the Authority; (d) providing for such matters in connection with shares, stock, bonds or

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debentures issued under this Act as may appear necessary or expedient to the Authority, and, in particular, for regulating the method of issue, transfer, redemption or other dealing with such shares, stock, bonds or debentures; (e) providing for such other matters as are contemplated by or necessary for giving full effect to the provisions of this Act.

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SCHEDULE 1 (s. 10) 1. Meetings of the Board (1) The Board shall meet not less than four times in every financial year and not more than three months shall elapse between the date of one meeting and the date of the next meeting. (2) Notwithstanding subparagraph (1), the Chairperson may, o n h i s o w n m o t i o n , o r upon requisition in writing by at least three members of the Board shall , convene a special meeting of the Board at any time where he deems it expedient for the transaction of the business of the Board. (3) The quorum for the conduct of the business of the Board shall be half of the total members of the Board. (4) Unless at least six members of the Board otherwise agree, at least fourteen days written notice of every meeting of the Board shall be given to every member of the Board. (5) The Chairperson shall preside at every meeting of the Board but the members present shall elect one of their number to preside whenever the Chairperson is absent, and the person so elected shall have all the powers of the Chairperson with respect to that meeting and the business transacted thereat. (6) Unless a unanimous decision is reached, a decision on any matter before the Board shall be by a majority of the votes of the members present and voting, and in case of an equality of votes, the Chairperson or the person presiding shall have a casting vote. (7) A written resolution signed by all members of the Board shall constitute a valid resolution of the Authority as if it were duly passed at a validly constituted meeting of the Board. (8) Subject to subparagraph (3), no proceedings of the Board shall be invalid by reason only of a vacancy among the members thereof. 2. Committees (1) The Board may establish such committees as it may deem appropriate to perform such functions and responsibilities as it may determine. (2) The Board shall appoint the chairperson of a committee established under subparagraph (I) from amongst its members. (3) The Board may where it deems appropriate, co-opt any person to attend the deliberations of any of its committees. (4) All decisions by the committees appointed under subsection (1) shall be ratified by the Board. 3. Disclosure of interest (1) A director who has an interest in any contract, or other matter present at a meeting of the Board shall at the meeting and as soon as reasonably practicable after the commencement, disclose the fact thereof and shall not take part in the consideration or discussion of, or vote on, any questions with respect to the contract or other matter, or be counted in the quorum of the meeting during consideration of the matter. (2) A disclosure of interest made under subparagraph (1) shall be recorded in the minutes of the

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meeting at which it is made. (3) A director who contravenes subparagraph (1) commits an offence and is liable to a fine not exceeding Kenya Shillings two hundred thousand and removal from the Board by the appointing authority

4. Execution of instruments Any contract or instrument which, if entered into or executed by a person not being a body corporate, would not require to be under seal, may be entered into or generally or specially authorized by the Authority for that purpose. 5. Minutes The Board shall cause minutes of all resolutions and proceedings of meetings of the Board and the Board committees to be entered in books kept for that purpose.

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SCHEDULE 2 (section 24(1)) 1. 2. 3. 4. 5. Telecommunications Information technology Business process outsourcing Life sciences Such other businesses as shall be prescribed by the Cabinet Secretary.

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SCHEDULE 33 (section 28) (a) Exemption from payment of income tax for the first ten years from the date of business establishment in Konza, provided that the income tax rate shall be limited to fifteen per cent for the ten years following the expiry of the Exemption granted under this paragraph. (b) Exemption from the payment of withholding tax on dividends and any other payments made to non-residents during the period that the enterprise is exempted from payment of income tax under subsection (1)(a). (c) Exemption from the Value Added Tax Act and from paying Value Added Tax on any goods and services purchased by the Licensee for use within the Konza Technopolis; (d) Exemption from the payment of customs duties on any goods or services imported for the purpose of construction of buildings in Konza Technopolis; (e) Exemption for acquiring a Single Business Permit from the County Government4; (f) Exemption from the payment of full withholding tax in respect of information and communication technology services rendered to a resident person, which withholding tax shall instead be at the rate of five per cent. (g) Exemption from stamp duty on the execution of any instrument relating to the business activities of the enterprise within the Konza Technopolis. (h) Exemption from payment of Pay-as-You- Earn on earnings accruing from services provided by non-resident employees of business enterprises located within the Konza Technopolis. (i) Exemption from quotas or other restrictions or prohibitions on import or export trade with the exception of trade in firearms, military equipment or other such goods. (j) Exemption from local ownership requirements under the Kenya Information and Communications Act for investors and service providers operating as business processes outsourcing, application service providers and content service providers. (k) Exemption from rent or tenancy controls under the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act. (l) Entitlement to such number of Class A or Class H entry permits for directors, technical, supervisory and managerial staff granted as may be deemed reasonably necessary by the Authority . (m) The full protection of its property rights against all risks of nationalization or expropriation; the right to fully repatriate all capital and profits, without any foreign exchange impediments or restrictions whatsoever.
3 4

These should be carefully reviewed by Treasury, MoIC, Ministry of Trade and AG To insert detailed provisions from the appropriate legislation

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(n) The right of protection of industrial and intellectual property rights, in particular patents, copyrights, business names, industrial designs, technical processes and trademarks. (o) Exemption from quotas or other restrictions or prohibitions on import or export trade with the exception of trade in firearms, military equipment or other illegal goods. (p) Such other incentives and exemptions as may be granted by the Cabinet Secretary by notice in the Gazette.

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