First, its $8B secondly the project implementation will be done in 3 phases and is spread to the year 2030, third...when the proposal was submitted, the involved ministries (communication, finance and science and tech) were asked to look for land as to where they would want the project to be and they chose konza reasons best known to them, anyway we pay them for that. The land was acquired and will be sold cheaply to the investors.

Look at Konza city as an EPZ and not the way u see any other city in the country. If you listen to Prof Kiamba in his interview with jeff you might have some answers to your questions.

On land allocations, the Ministry wanted it to be on a first come first serve basis, but the AG wanted it to be on highest bidder, seems wamekuwa wengi, well....i don't know what they settled on. If you go to the Ps's office u shall get all the info u want, nothing is hidden

That is where ur missing the point. There will be a Konza Development Authority that will oversee the ownership and development of the city.

Now someone can write a thesis on this. I guess we have laws in this land and i said...this is not the first project that the WB has funded. I dont know the extend of the mandate of Konza dev authority but what i am aware they will be in control of what comes up in that area.

Remember the govts biggest role is to be an enabler of a conducive environment to do business

@ a4architect.com
I have been following your comments and those of a few others who are enlightened and am glad that you are creating awareness about this dubiuos project.

Slowly but surely will people awaken.

@L...Lets try and dissect Konza from a Jua Kali financial economist's point of view:

1.Ministry of Info buys land using tax payer's kes 1 b.
2. Ministry of Info advertises and hypes the said land.
3.Land price rises from kes 200k per acre to kes 4m per acre.If proper mechanisms in allocating the land are used, the high prices are recouped back to treasury=zero sum.

When someone buys land worth kes 1m at kes 4m, the 3m loss/difference is recouped/gained at treasury while he looses the 3m.
This is a zero sum to treasury/economy.

For a private sector project eg Tatu city, this 3m is termed as profit.

If no proper mechanism in allocation, treasury receives its initial cost minus running costs=negative sum.

The surplus is lost through corruption since investors will still pay market value unofficially, and reserve price officially.

People would have spent more on land that cant reciprocate in utility.The excess instead of being recycled into treasury, gets lost within corruption networks,most probably international,hence more damage to economy.

4.Land price is now high but no infrastructure to assist users recoup profits as in other towns/cities with existing infrastructure e.g Machakos,Kitengela and Nairobi hence productivity is lower in other towns.

5.High land prices without infrastructure lead to high cost of rent/houses/operating business.
6.High cost of houses/operations increases production cost.

7.High production cost reduces competitiveness hence investors loose out/make losses.

8.Investors cant make profits hence pay tax hence Govt looses out on tax revenue since its citizens are producing less.

My explanations above could be right or wrong on why in capitalist governments, govt should not compete with its citizens but i think the reason is that if it does, there will be a zero-sum to treasury.

A financial economist could explain better.

A country makes wealth by trading externally.

Konza city will make business sense by trading externally.
To trade externally, Konza city's costs of production are supposed to be as low as possible e.g China.

In Tatu city and other private sector real estate projects, the risks of loss to the economy are much lower/non-existent.Also, developer is more diligent while buying land to avoid losses when he cant find buyers.