Kenya proposes standalone data-centre licence

David Mugonyi, director-general of the Communication Authority of Kenya.
David Mugonyi, director-general of the Communication Authority of Kenya.

The Communications Authority of Kenya (CA) has opened a public consultation on a proposal to introduce a standalone licence category for data centres, according to a notice signed by its director-general and CEO, David Mugonyi.

The regulator currently oversees commercial data centres within the Network Facilities Provider-Tier 2 (NFP-T2) licensing framework. The CA said it wants to create a dedicated Data Centre licence to provide clearer regulatory oversight as demand for digital infrastructure grows.

Under the proposal, the licence would apply to entities providing co-location data centre services and associated supporting services. 

The CA said the approach would improve visibility of data centre operations, support continued investment in digital infrastructure and bring Kenya's regulatory framework in line with proportionate approaches in comparable jurisdictions.

The CA has given stakeholders and members of the public 30 days from the date of publication of the notice to submit written comments.

The consultation follows the CA's wider review of Kenya's telecommunications market structure. In 2025, the Authority consulted on changes to its Unified Licensing Framework, including the regulation of data centres. 

The revised market structure subsequently brought commercial data centres within the NFP-T1 and NFP-T2 licensing framework. The latest proposal would create a dedicated category for co-location data centre services instead.

The proposed licence would therefore represent a further change to Kenya's treatment of data centres, moving from their inclusion within the broader NFP framework towards a category tailored specifically to co-location operations.

Kenya is expanding its data centre and artificial intelligence infrastructure as the government seeks to attract investment in digital infrastructure. 

ITWeb reported in June that principal secretary for ICT and the Digital Economy John Tanui cited improved connectivity, supportive regulation, renewable energy and regional demand as competitive advantages for data centre operators and cloud service providers.

The country's data centre ecosystem includes Safaricom, Oracle, Liquid Intelligent Technologies, iColo and the government-owned Konza National Data Centre. ITWeb has previously reported that Kenya's expanding terrestrial fibre networks and growing cloud infrastructure are strengthening its regional connectivity position.

The CA's proposal marks another step in the modernisation of Kenya's ICT licensing regime as data centres become an increasingly important part of the country's digital infrastructure.

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