Kenya is proposing a dedicated licensing regime specifically for standalone data center operations to formalize sector oversight.

On 8 September 2026, Kenya is consulting on a standalone data centre licence for co-location operators, moving them out of existing telecommunications categories. Kenya’s Communications Authority (CA) has opened consultations on a proposed data centre licence that would establish a dedicated regulatory framework specifically for companies providing co-location data centre services.

Under the proposal, co-location data centres would no longer fall under the Network Facilities Provider Tier 2 (NFP-T2) licence category. The authority states that a dedicated licence would provide greater regulatory clarity, improve visibility into data centre operations, support investment in digital infrastructure, and align Kenya’s framework with proportionate approaches used in comparable jurisdictions.

The proposed licence would apply specifically to entities providing co-location services and related support services. The consultation documentation clarifies that the standalone category does not extend to every type of privately operated or enterprise data centre, keeping the focus strictly on co-location services.

This proposal follows an earlier review of Kenya’s telecommunications market structure, during which the authority determined that data centre operators should operate under a single NFP-T2 licence rather than holding multiple licences. The current consultation effectively moves co-location data centres out of that category and into a dedicated regulatory framework. In April 2026, the Communications Authority of Kenya formalized the country’s current telecommunications market structure under a Unified Licensing Framework (ULF). Built on technology and service neutrality, the ULF divides network infrastructure providers across several licensing tiers.

Stakeholders and members of the public are invited to submit comments on the proposed framework within 30 days of the consultation notice’s publication. Submissions may be made electronically, by email, by post, or through hand delivery.

Why does it matter? A standalone data centre licence would formally distinguish co-location facilities from conventional telecommunications network infrastructure within Kenya’s regulatory framework. This distinction could provide the regulator with a more tailored basis for overseeing facilities that support cloud computing, digital platforms, and data hosting. The proposal is also notable because it revisits Kenya’s earlier approach of placing data centres within an existing telecommunications licence. Moving toward a dedicated data centre licence suggests a strategic shift toward treating co-location infrastructure as a distinct regulated activity as Kenya’s data centre market continues to develop.

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