Kenya Introduces KSh15M Data Centre Licence

Kenya has introduced a new licensing framework for data centres, with licences costing up to KSh15 million. Under the revised telecommunications market structure published by the Communications Authority of Kenya (CA) in June 2026, data centres now fall under Network Facilities Provider Tier 1 (NFP-T1) and Tier 2 (NFP-T2) licences.

The move formally recognises data centres as critical digital infrastructure requiring dedicated regulation.

The change comes as Kenya becomes increasingly dependent on data centres. These facilities support financial services, government platforms, cloud computing and digital businesses. A disruption can quickly affect essential services. In June 2026, a power outage at Huduma Kenya’s data centre disrupted government services, highlighting the importance of reliable and well-regulated digital infrastructure.

The new rules follow years of consultation. The CA began considering data-centre licensing in 2024, proposing that certain facilities be regulated alongside communications infrastructure providers. The revised framework was gazetted in March 2026 and took effect 30 days later. Data centres initially proposed under a separate NFP-T3 category were instead placed under the NFP-T1 and NFP-T2 tiers.

NFP-T2 provides the more straightforward licence for dedicated data-centre operators. It costs KSh15 million, with an annual operating fee of 0.4% of gross turnover or KSh800,000, whichever is higher. NFP-T1 targets larger operators with nationwide infrastructure and costs KSh15 million for 15 years or KSh45 million for 25 years, with a minimum annual operating fee of KSh4 million.

The broader goal is to strengthen Kenya’s position as an African data and cloud hub. The country has 19 data centres, 15 in Nairobi and four in Mombasa. Market capacity stood at an estimated 15 MW in 2025 and is projected to reach 25 MW by 2030.

Kenya’s submarine cables and satellite infrastructure make it attractive to investors, but electricity remains a major challenge. The new licensing regime could provide greater regulatory certainty, but reliable and affordable power will be crucial if Kenya is to capture the next wave of AI, cloud and data-centre investment.