Kenya regulator proposes standalone licence for data centres

Details: Manny Pham; Category: Data Centres & Networks; 09 September 2026; 385 views

The Communications Authority of Kenya (CA) has opened a consultation on a proposed standalone licence for colocation data centres, in a move aimed at providing greater regulatory clarity for the sector and supporting investment in digital infrastructure.

The authority has given data centre stakeholders 30 days (from September 8) to review and comment on its proposed framework, which would remove colocation data centres from the Network Facilities Provider (NFP) Tier 2 licensing category.

The CA said the current classification was intended to give it visibility over data centre operations, but places facilities within a licensing category primarily designed for companies that establish and operate telecommunications network infrastructure.

Under the proposed framework, data centres would instead have their own licence category reflecting their role in providing colocation, power, cooling, storage and computing infrastructure rather than telecommunications services directly to end users.

The CA said a standalone licence would provide regulatory oversight of facilities hosting systems critical to Kenya's digital economy while avoiding the application of requirements designed for telecoms network operators.

The proposed licence would carry an application fee of KES5,000 and an initial licence fee of KES100,000. Annual operating fees would be KES80,000 or 0.4% of annual gross turnover, whichever is higher. Licences would be valid for 15 years.

Entities already holding NFP or Application Service Provider (ASP) licences would be permitted to establish and operate data centres without obtaining a separate data centre licence.

The CA said data centres have become critical infrastructure for services including internet access, financial services, healthcare, e-government, agriculture and education, increasing the need for regulatory visibility as the sector expands.

The proposed data centre regime is scheduled to be finalised and implemented through the 2026/27 and 2027/28 financial years. The roadmap calls for the consultation and finalisation of the framework during FY2026/27, followed by consequential changes to the telecommunications market structure and implementation during FY2027/28.

The consultation comes as Kenya seeks to expand its digital infrastructure and strengthen its position as a regional hub for cloud, data centre and other digital services.