Kenya Updates Data Center Licensing Under New Regulatory Framework
Kenya’s Communications Authority revises data center licensing, introducing NFPT1 and NFPT2 categories to regulate critical digital infrastructure.
By John Mtongoi Newsroom
August 21, 2026
2 min read
Kenya has introduced a revamped licensing framework for data centers, reflecting the sector's growing importance in the country's digital ecosystem. The Communications Authority of Kenya (CA) published the new regulations in 2026 as part of the Revised Telecommunications Market Structure.
New Licensing Categories
Data centers are now classified under two Network Facilities Provider licenses: Tier 1 (NFPT1) and Tier 2 (NFPT2). This marks a shift from the previous Unified Licensing Framework (ULF), which treated data centers under a technology-neutral approach.
The NFPT1 license targets large-scale operators with nationwide infrastructure ambitions, offering the option of a 25-year license term. Meanwhile, the NFPT2 license is designed for data center operators expanding incrementally across counties, providing a more cost-effective option without requiring national spectrum commitments upfront.
Rationale for Regulation
The CA emphasized the critical role data centers play in supporting essential services such as government operations, financial institutions, and retail. Past incidents, like the Huduma Kenya service disruption caused by power failure at a data center, highlighted the need for stringent oversight.
According to CA's 2024 consultation paper, regulating data centers similarly to communications tower companies ensures protection of users’ data access rights, given the significant influence facility owners have over data accessibility.
Market Landscape
Kenya currently hosts 19 data centers, predominantly located in Nairobi (15) and Mombasa (4). The sector's capacity was estimated at 15 MW in 2025, with projections to reach 25 MW by 2030. The country's strategic position with submarine cable landing points and satellite earth stations enhances its attractiveness, although reliable power supply remains a key challenge.
Consultative Process
The CA undertook a comprehensive public consultation involving industry stakeholders before finalizing the new licensing structure. The revised framework was officially gazetted in March 2026, with implementation commencing 30 days thereafter.
