Malili e-City: Kenya's exclusive metropolis for the technology investor

All that which glitters is not gold. But it could be Kenya’s Malili e-City - the planned ultra-modern metropolis surrounded the beautiful things you’d pay to see.

Kenya’s marvelous futuristic city for business processing outsourcing (BPO) - the third of its kind in Africa and one of the few in the world, will be located at a place called Malili, a scenic area overlooking the awesome Mt. Kilimanjaro. The looming snow-clad mountain range stands only 60 miles away to the South West.

Near the city will be Sultan Hamud an ancient town said to have been named after a sultan Hamud based in Mombasa before Kenya was colonized by the British. Next to it is Kiu railway station. Its importance is that at about 270 meters (4861 feet) above sea level, Kiu is as the point where the coastal climate ends and that of the highlands starts. So Malili e-City residents will be sitting astride highland and coastal climates, as exciting as Mt. Kilimanjaro for the artists. Historically, Kiu also marked the end of the Sultanate Empire in pre-colonial days.

To reach Malili e-City from Nairobi – 60 kilometers north - you take a pleasurable drive past a great grassy expanse, the first portion of which is known as the Kapiti Plains and that beyond as the Athi Plains. On the plains, which stretch as far as Nairobi, are great quantities of game. Majestic herds of them are breathtaking to watch, especially in the late afternoon. Among those to be seen grazing near the road are large herds of antelopes, ostriches, zebras, wildebeest and giraffes.And these are not the only attractions. Malili e-City will be on the safe side of Nairobi for your quick drive from the Jomo Kenyatta International Airport.

Government Hopes Are High for Malili e-City

From its activities and statements, the Kenya government has high expectations for Malili e-City. Its Vision 2030, the blue print to fast track the country to economic status of the so-called Tiger States of Asia, identifies business processing outsourcing as the key mover among six sectors identified as important for economic growth. Tourism, agriculture, manufacturing, trade, and the financial services are the other movers identified in the blue print.

But it is in Malili metropolis where technology is expected to generate jobs to absorb more than 700,000 secondary school leavers and a growing number of university graduates. Vision 2030 says, “Kenya hopes to become the top off-shoring destination in Africa. BPO will therefore become the sector of choice for employment and young professionals.”

E-Cities Have High Employment Capacity

The government isn’t “cutting figures from the air.” There is precedence. Similar projects elsewhere have shown a high capacity for job creation. In Malaysia, such a city, covering a smaller land area, created 220,000 jobs, in Panama 40,000 jobs and in the Philippines 70,000 jobs. And more than 1,000,000 people in India are engaged in BPO. Internationally, the BPO business is gigantic, standing at US $1billion - and fast growing.

By November last year, the government had already hired the International Finance Corporation to provide advisory services. It had also already acquired the land title deed for the 5,000 acre Malili farm and paid nearly half the price to the farmers.Contracting for the construction was expected to start in February, 2010.

Now, Let’s Imagine the City

What will Malili e-City be like? Let’s imagine an ultra-modern city with shinning marble streets. Everything will glitter. Mr. Gikonyo Gitonga of CB Richard Ellis imagines: “Due to competition, the techno-park must have quality residential areas, entertainment spots, shopping malls, sport facilities like a golf course, among others, to make it an attractive place to work.”

Dr. Bitange Ndemo, Permanent Secretary for Information and Communication, who holds the blueprint talks of a similar city. He says it will have a BPO park, a science park, convention centre, mega hall, hotels, international schools, world class hospital, a financial district, high speed mass transport system and integrated infrastructure including roads, sewerage and so on.Understandably, investors in the technology sector are excited. The entire technology industry in Kenya is agog about the future prospects for this country as a technology services centre.

Doubting Thomases

Despite these noble intentions and the excitement, there are doubting Thomases. And many of them are expressing fears that this will be another milk cow for the corrupt. Past experience has shown that whenever a project of this magnitude is launched in Kenya, it quickly becomes a cash cow for corrupt Kenyan civil servants.

Consider the Nyayo school milk project and walk through to the recent government subsidized maize project where Shs 2 billion has already been stolen and again to the free primary education project where Shs1 billion has also been stolen. You, too, will become cynical.

Disputes – Still More Expected

Even as Dr. Ndemo was painting a good picture of the project, a fierce battle was raging inside and outside the courts regarding the manner the government was handling the purchase of the land.The land is worth Shs1 billion. And the government had paid only Shs400 million when disputes erupted because of what are said to be irregular payment channels.

In one dispute a consultancy firm called Gateway is allegedly demanded a payment of Sh286 million as commission fees for facilitating the sale of the land between the government and the land owners of Malili Ranch. The controversy has already forced the government to suspend processing payment of the Sh600 million purchase cost balance pending settlement of the dispute.And on their part, the farmers are demanding to be paid all the money and compensation to those who had already started improving their portions of the land.

Dr. Ndemo says however, that the government will go on with the project regardless. Of course, the government, if it has the will, has the machinery and power to facilitate quick resolution of the disputes so investors can get on with the job of creating jobs at Malili e-City. Whether it will do that and show a new face as incorruptible, dependable, government of action, however, remains to be seen.

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