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Konza City featured on K24 all week this week
Rank: Elder Joined: 2/16/2007 Posts: 2,114
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Did Ndemo say when the ground breaking will take place?
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Rank: Member Joined: 11/10/2010 Posts: 281 Location: Nairobi
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If you ask me, the govt should find a better way of developing ict in the country by for example developing a basic computer science curriculum for high schools and ensuring all schools in the country have a computer lab.
Throwing that cash into the purchase of land without commitment from potential buyers is speculation. That is not the govt's business. In a capitalist system, the private sector speculates, the government facilitates. Kenyans should keep their fingers crossed and pray this will not be a ghost city.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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madhaquer wrote:If you ask me, the govt should find a better way of developing ict in the country by for example developing a basic computer science curriculum for high schools and ensuring all schools in the country have a computer lab.
Throwing that cash into the purchase of land without commitment from potential buyers is speculation. That is not the govt's business. In a capitalist system, the private sector speculates, the government facilitates. Kenyans should keep their fingers crossed and pray this will not be a ghost city. The last time i checked students taking KCSE had an were examined computer courses. This is a project spanning to the year 2030. More is being done thats why there are calls to revamp the education sector. Why are you assuming there is no commitment? So far 18 unis want the science edu park. Here is an example of the Korean version http://en.wikipedia.org/...ngbuk_Free_Economic_Zone"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore .
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Rank: Member Joined: 11/10/2010 Posts: 281 Location: Nairobi
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@murchr: 1. There are a select few high schools in Kenya with computer labs, that does not mean universal access or equal opportunity. 2. The fact that there is an exam to sit after 4 years means we should be churning out a fair percentage of whiz kids from this, not just typists, gamers and microsoft addicts. 3. If 18 universities want a chunk, does it justify 5000 acres ? I wonder if the govt will be building a single secondary school there or Is it actually the cart before the horse ?
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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madhaquer wrote:If you ask me, the govt should find a better way of developing ict in the country by for example developing a basic computer science curriculum for high schools and ensuring all schools in the country have a computer lab.
Throwing that cash into the purchase of land without commitment from potential buyers is speculation. That is not the govt's business. In a capitalist system, the private sector speculates, the government facilitates. Kenyans should keep their fingers crossed and pray this will not be a ghost city. @madhaquer..true Tax payer money at Treasury is wealth generated from production by Kenyans. Ministry of Info buying land from the same Kenyans using their money =zero sum to the economy. Ministry of Info can only increase tax payer amount if it sells the land to foreigners=FDI. By selling to foreigners, this becomes an EPZ model. Silicon valley developed when citizens created wealth from ICT production. Konza can only develop when Kenyan citizens create wealth through ICT innovation. In an EPZ model, Konza will only assist other multinationals in creating their wealth by offering cheap labour,land e.t.c. Assisting multinationals to create their wealth through efficient productivity results in Kenyan ICT companies facing stiff competition . Its akin to scoring an own goal. No country in the world has ever developed by assisting other countries to create wealth. Countries develop when they create wealth. Wealth is created when a country ensures factors of production, including land are low to its citizens. Kenyans employed by Multinationals at Konza will only earn low pea nut wages hence no gain to the economy. Multinationals will always find a way to repatriate their profits. Ndemo should come out clear and tell us how the country intends to gain from inviting Multinationals if the model is based on EPZ. If the Konza model is based on the Silicon Valley model, Ndemo should tell us how production costs will be reduced for kenyan ICT industry for them to be successful. Also, its not clear on how Ministry of Info will recoup money spent on the project eg buying land, infrastructure costs when Multinationals work within the EPZ model and are leased the land at cost. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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@murchr.. the Korean version is a series of small EPZ zones in different locations as opposed to a monolith. Since Ministry of Info's model seems similar to the EPZ model, the land between Athi River and EPZ, around 500 acres, is still vacant. EPZ is already established there. Ministry of Info should have looked into an option of co-establishing within the Kitengela EPZ. This could have freed the KES 1B tax payer money for a more direct infrastructure investment in to ICT sector. Economists here in Wazua can tell us of benefits to the economy derived by the EPZ model. EPZA Kenya http://www.epzakenya.com...nya.php?cat=3&sub=8
Quote:Overview
The Athi River Export Processing Zone was gazetted on 23 rd November 1990. It was the the first publicly developed zone and covers 339 hectares of land including 229 hectares of the main site, LR. No 18474 in Athi River (Mavoko). The zone was developed at a cost of US$ 30 million with a World Bank (IDA) line of credit (80%) and with contribution from the Government of Kenya (20%). The zone was designed to provide infrastructure and services for export oriented industries within the zone and ancillary services to the wider community in Mavoko and Kitengela .
In this regard, the project is more than an industrial park; it is an urban development project with various facets. The site was selected because it had a number of advantages – the land was suitable for drainage and sewerage works; the site was easily accessible by two major highways (Nairobi-Mombasa and Nairobi-Namanga); was close to the Jomo Kenyatta International Airport; was adjacent to the main Nairobi –Mombasa railway line; was close enough to Athi River town and Nairobi cityand yet had adequate undeveloped land in the vicinity for future planned development. Phase 1 of the zone was completed in 1997 covering 93 of the 292 hectares of the main site. EPZ Kenya http://www.diplomateasta...ering-the-common-market
Quote:The Kenya Association of Manufacturers (KAM) Chief Executive Officer, Betty Maina reportedly as saying that allowing EPZs to sell a major chunk of their produce in the market is similar to allowing them sell their bulk domestically.
“What with the 10-year tax holiday that they enjoy besides other exemptions, reduced import duty and waivers for promotion of exports. The competition would only be unfair and untenable if the local manufacturers were to be subjected to competition with these enterprises which enjoy greater advantages,” she said. http://www.businessdaily...n/-/al4nb7/-/index.html
Quote:EPZ companies have also come under heavy criticism for allegedly setting up operations in Kenya to benefit from the 10-year tax holiday, which exempts the operators from paying income tax, only to close shop at expiry of the grace period. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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As described below by Mason Gaffney,It seems its a global problem whereby Land Economists are not taught how to integrate financial economics and vice versa. In Konza city, Ministry of Info is therefore left without proper advisory apart from Worldbank/IFC economists hence tax payer loss. Mason Gaffney below describes it as some kind of conspiracy. I describe it as an opportunity for a new subject/profession which can develop into a major career to be taught in universities,similar to land economics. http://www.wealthandwant...cs/Gaffney_LaaDFoP.html
here is a subdiscipline called "Land Economics," and a journal of that name. There are journals of Agricultural Economics, Urban Economics, Regional Science, Environmental Economics, Natural Resources, and more. The subdisciplines are kept away from the "core" and "mainstream" of economic thinking by compartmentalization and colonialization. Patronizing "land economics" as a colonial discipline keeps potentially contagious movements within the empire, where they can absorb critical tendencies under watchful control, while yet remaining safely remote, in the outskirts of the system. Orthodoxy flows out from the core, communicated via mandatory "core courses." Land economics is banished from the "commanding heights" of money and banking, macropolicy, and required "basic" courses in methodology and micro theory.As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Veteran Joined: 3/25/2010 Posts: 939 Location: Nai
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@a4architect.com the Billion spent on land @ Konza is already spent there is no way this can be reversed so lets focus on the other aspects of the city. if the next govt will consider the project not viable then they can as well leave it to the people around there to graze as they used to or give it to IDP's
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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@jamplu..true. Lets use the situation to brainstorm and hope that the knowledge can be utilized in other sectors of the economy. Its now clear that there is no clear branch of knowledge/education that brings land economics together with Financial economics. Most of the knowledge will have to be self-generated. We can therefore not blame Ministry of Info for such complex land investments vis a vis the economy. In the concept of Govt buying land from its citizens then selling it back, hypothetically speaking, what would prevent the Govt from agreeing on the sale price, signing the sale contract then printing kes 1 b at central bank/de la rue ? This will cause inflation of the same ammount hence sellers will hold kes 1 b without as much value as in the case when they sell to a private entity who has no access to the central bank. These could be the reasons that in capitalist economies, Govt is not supposed to compete with citizens in biz coz it has an upper hand. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Elder Joined: 7/20/2007 Posts: 4,432
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a4architect.com wrote:
@madhaquer..true .
Silicon valley developed when citizens created wealth from ICT production. Konza can only develop when Kenyan citizens create wealth through ICT innovation.
In an EPZ model, Konza will only assist other multinationals in creating their wealth by offering cheap labour,land e.t.c.
Assisting multinationals to create their wealth through efficient productivity results in Kenyan ICT companies facing stiff competition .
Its akin to scoring an own goal.
No country in the world has ever developed by assisting other countries to create wealth.
Countries develop when they create wealth.
Wealth is created when a country ensures factors of production, including land are low to its citizens.
Kenyans employed by Multinationals at Konza will only earn low pea nut wages hence no gain to the economy.
Multinationals will always find a way to repatriate their profits.
I remember Michael Joseph agreeing that this type of model is not good for Kenya and I hated seeing myself agree with him....i hate safcom. I'm a land economist by training and I have major misconceptions about the issue of Gov't buying land and reselling to citizens. Kiamba was my lecturer. But pls remember he went into political appointments eons ago. Saying that since it has happened, lets allow it to go on is even more dangerous. We pay beuracrats money to think. I have yet to see any argument anywhere online or offline on the ICT issue. I know lamu will be useful since the port will have economic activity, turkana coz of oil, nairobi coz of gov't activity. what about Konza. what economic activity is going to make a 20 story building stay full? Not Ict as I've not seen any ICT firm filling up the spaces available in Nairobi yet. Jose: If I make it through this thug life, I'll see you one day. The Lord is the only way to stop the hurt.
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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@alma..good to know you are a land economist. The world needs land economists like you who are brave enough to think outside the 'land' box into 'financial' economics as Mason Gaffney here says. http://www.wealthandwant...cs/Gaffney_LaaDFoP.html
I remember Prof. Kiamba too in the days when he was Dean, College of Arch & Eng. Ministry of Info has hired the advisory services of Worldbank/IFC. The best they can advice Ministry of Info is what we are seeing. Economics 101 teaches that countries develop when they create wealth. Wealth can only be created through efficient production. Nurturing ICT talent into new products is the most economical way to create wealth as opposed to inviting multinationals then gaining from employment. The iHubs and other hubs will create more wealth into the country than Konza city in the long run. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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@a4architect..I have come to believe that your issue is bigger than what u purport it to be, now u would rather the city be established in a 500 acre piece of land, surely why think small....anyway, look for Ndemo and others in the ministry of comm..... Its amazing how you contradict yourself, yes countries grow when they create wealth, the last time i was in a business class my lec Prof Lewa told me that a multinational is an org that operates in more that 3 countries, thus, Bidco KCB Equity are examples of our local multinationals. Now in the ICT sector, the local multinationals are the likes of Cellulant, Craft silicon, Ushahidi Inc..Seven seas..and others that are coming up every other day. My friend, 2030 will definitely not look like 2012 esp in technology, if you have learnt anything about business turbulence, then you will realize that the IT industry is in level 4 and 5 infact IMHO i think 5000 is not enough, but then...there are digital villages. All the best in your quest. "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore .
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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@murchr..true. I hope my arguments can be used to make the world a better place and reduce poverty in developing countries. In the South Korea park, the 'cities' are several km apart and each is around 200 acres in size[smaller than Kitengela EPZA]. The Kitengela EPZ site has around 500acres vacant. This is not small land. This can be phase 1 and we can have phase 100 or as many phases as sustainable in future[thinking big in a sustainable manner]. By doing so, we will have freed kes 1B tax payer money to be used to lay ICT infrastructure which will result in productivity. This makes sense to me and its my hope that such an idea can be used by Ministry of Info for the beterment of Kenya as a whole. On the issue of Govt buying land and reselling to its citizens, my humble opinion is that it could just print the money and cause inflation. Land owners will not be in a capacity to prevent this. So its not moral for Govt to engage in business since it can potentially be unfair for the citizens. If govt buys more land, it hampers productivity because land becomes scarce, so its price rises. When price rises, start-ups will be priced out and will not be able to produce wealth. Rents will be high hence products will also be expensive . Other countries with cheaper cost of production will thrive at our expense. This opinion is not cast in stone. If you give a contrary opinion that is convincing, then we will go with your opinion. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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The 1B is already spent my friend...and poverty is eradicated by providing opportunities to create wealth. This is not the only project that the govt is undertaking, the resort city in Isiolo is another where the govt is/has acquired 6500 acres. Again when u think long term, you will see the viability of the projects, we are not talking of kiosks here. "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore .
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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Now that the I B is already spent, its important to debate and see if other options can be available especially for future similar projects. In Isiolo, Govt can acquire as much land as they can since most productivity is in Nairobi. When Govt acquires land, it becomes scarce since land is a finite resource. This scarcity leads to cost increase. Cost increase leads to cost of productivity going up. Productivity cost rise affects investors since their goods and services are un-affordable/over priced. Opportunity to create wealth is best provided by saving the KES I Billion and redirecting it into ICT infrastructure or ICT inventors/start up funding or ICT education e.t.c Govt buying land then reselling to Multinationals or citizens does not increase productivity. In the long term, towns grow into cities over time e.g Nairobi started with River road and over time, buildings have been demolished,zones rezoned to accommodate the growing city. In the long term, Nairobi will grow towards Mombasa road past Syokimau and join Machakos,Konza and Kajiado. This is sustainable growth if proper planning ,infrastructure and zoning is done. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Who said they are selling it to multinationals? I thought such orgs are not in the real estate business? Do you believe that growth without planning should be encouraged? If Athiriver was well planned to be an industrial town, would we be seeing the kind of disorganization and demolitions that we have today? I believe its necessary for zoning to take place. I now fail to understand u completely its ok for govt to acquire land in Isiolo but not in Konza, wao.... I think your last paragraph is the only one that makes sense to me. "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore .
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Rank: Elder Joined: 7/20/2007 Posts: 4,432
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For me I don't care what good or bad intentions gov't has. Gov't should not participate in actively buying and selling land. Beats all purposes for it leasing land to individuals anyway. That's why they have forced acquisitions, where they have to show a need for a project. Once you allow gov't to buy land from A and sell/lease to B, you have entered the slippery slope of gov't redistributing wealth from those it deems not worthy. Re-distribution of wealth by gov't should be greatly discouraged. It means that they can come and buy my plot and sell it to Kamau simply because he's a friend to the gov't. So at the onset the project has economic and moral issues attached. But I'm still waiting for this ICT component. Everyone still wants to skip it. It is supposed to be the heart of the project, but no one wants to show us the steps this ministry is taking towards growing ICT. If you mention another awards ceremony or another conference I will know you are not getting the point. Jose: If I make it through this thug life, I'll see you one day. The Lord is the only way to stop the hurt.
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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murchr wrote:Who said they are selling it to multinationals? I thought such orgs are not in the real estate business?
Do you believe that growth without planning should be encouraged? If Athiriver was well planned to be an industrial town, would we be seeing the kind of disorganization and demolitions that we have today? I believe its necessary for zoning to take place. I now fail to understand u completely its ok for govt to acquire land in Isiolo but not in Konza, wao....
I think your last paragraph is the only one that makes sense to me. During DrNdemo'sK24 interview,he said Multinationals wanted world-class buildings which they could not find in Nairobi hence need for Konza. He mentioned a few multinationals who had shown interest. In any case, the Konza project only adds to tax payers when Foreign Direct Investment comes into play as opposed to when citizens buy which is a zero-equation. Govt selling land to its citizens is like someone buying his own property =zero sum. Growth without planning should not be encouraged. Until a few years ago,Athi River Mavoko did not have qualified Planners in charge.Now they have Planners so they are planning well. Demolitions in Syokimau were as a result of dysfunction between ministry of lands and ministry of local govt in terms of land ownership, not planning. As we speak,most urban areas around Nairobi e.g Mavoko,Ruiru,Kajiado have qualified Planners in charge hence proper zoning controls. Their capacity needs to be enhanced to ensure compliance. In Isiolo, Govt buying of land is still improper but will cause less damage to the economy. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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Rank: Veteran Joined: 3/25/2010 Posts: 939 Location: Nai
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@a4architect.com please lets not talk about planners they cannot reverse the mess in mavoko the place would have been better if it had been left bare for the giraffes and zebras to graze around as they used to before. I think bwana architect you can enjoy the opportunity for you at konza since you are in the real estate business make your money and move on those of us who'll be interested in moving to Konza can move to konza wale wengine can remain in Nairobi. Next chapter lets talk about Isiolo I think you'd better see the ministry handling the project and make sure they don't buy the land last i heard they have already identified land!!
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