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Business Daily (Nairobi)
June 23, 2008
News Article By Okuttah Mark
An Sh8 billion project that promises to change the face of Athi River town and create over 10,000 jobs begins next month.
The project is the first in line under a deliberate government shift towards services, notably Information and Communications Technology (ICT).
Already Sh900 million has been earmarked for starting the Business Process Outsourcing (BPO) Park from where Kenyans will offer telecommunications services to employers overseas.
The public - private partnership only needs a Cabinet approval before being rolled out. It is projected to be operational in three years, according to the ministry of information which is implementing it through the ICT board. "We have already done the concept paper, the feasibility study and the cabinet memo.
We have also marketed the idea to various stakeholders and multinational companies. We start implementation as soon as the cabinet memo is approved," said the Information permanent secretary Bitange Ndemo.
The park is expected to house multinational ICT companies undertaking the BPO services, Software development and computer assembly. The government aims to create 10,000 jobs at the facility, attract foreign investors and allow for skill transfer.
The 2007/2008 report on global offshore services by CB Richard Ellis, international property consultants, rank Kenya and Egypt as the most promising BPO destination in Africa followed by Ghana and Botswana.
A key challenge facing the government is securing the 2,000 acres needed for the project in a vicinity where fragmentation has been the order of the day. It has been proposed that some of the land currently owned by the Export Promotion Zone Authority be put to use and the rest be bought from the public.
The EPZ owns a total of 1,123 acres which means if the government goes with its 2,000 acres plan it will have to buy 877 acres from the public. Currently, parcels of land at the Mlolongo area along the Mombasa highway are going for between Sh5 million and Sh9 million per acre. A parcel at Athi River, now renamed Mavoko, goes for Sh2 million while those in the interior are selling at Sh350,000 per acre.
Under the plan, the government would provide the land and infrastructure, water, fibre optic, roads and energy whereas the investors provide the real estates and the enterprises. Mavoko town clerk Tubmun Otieno said the options on land ranged from direct purchase from the private sector to leasing it from the EPZ.
Mr Otieno said the BPO park would open new business opportunities within the area, especially in real estate and social amenities. Although there are a number of housing projects coming up in the area, housing units that can cater for the middle and upper income groups are not adequate. Mr Otieno said the government should look for a solution to the water scarcity before setting up the facility in the locality.
" We are currently relying on water supply from Nairobi which is not even sufficient for the current population at the moment" said Mr Otieno. ICT board chairman Paul Kukubo said the ICT board would work with experts on the various models of managing the BPO park and pick the one with the most in terms of value addition, cross sector linkages and effectiveness.
Egypt is has a park on 600 acres through a similar ownership arrangement the government owns 20 per cent while private sector has 80.


