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2015 Kenya

Advanced Institute of
Science &
Technology
Feasibility Study

Final Report
October 30, 2015

KAIST Consortium
ⓒ2015 Korea Eximbank / EDCF (Economic Development Cooperation Fund)

38 Eunhaeng-ro, Yeongdeungpo-gu, Seoul 150-996, Korea


Telephone: +82-2-3779-6114
Internet: www.koreaexim.go.kr / www.edcfkorea.go.kr

This report was prepared for the Kenyan government by Korea Eximbank (EDCF). The
findings, interpretations, and conclusions expressed in this work do not necessarily reflect the
views of Korea Eximbank. Korea Eximbank does not guarantee the accuracy of the data
included in this commissioned work.

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Kenya Advanced Institute of Science and Technology Feasibility Study

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Kenya Advanced Institute of Science and Technology Feasibility Study

Table of Content
List of Tables .............................................................................................................................. 9
List of Figures .......................................................................................................................... 13
List of Abbreviations ................................................................................................................ 15
Executive Summary ................................................................................................................. 19
Chapter 1. Feasibility Study (F/S) Overview ........................................................................... 25
Project Name........................................................................................................................... 25
Project Objectives ................................................................................................................... 25
Project Background................................................................................................................. 25
Project Rationales and Expected Outcomes............................................................................ 26
Project Costs ........................................................................................................................... 26
Project Risks ........................................................................................................................... 26
Methodology ........................................................................................................................... 28
Chapter 2. Project Context ....................................................................................................... 31
Geography and Demography .................................................................................................. 31
Geography ..................................................................................................................... 31
Demography .................................................................................................................. 33
Regional Context ........................................................................................................... 34
Political Context ..................................................................................................................... 35
Political Leadership ....................................................................................................... 35
Central and Local Governments .................................................................................... 36
Economic Context................................................................................................................... 37
Overview ....................................................................................................................... 37
Macroeconomic Performance ........................................................................................ 38
Industrial Profile ............................................................................................................ 41
Employment Conditions ................................................................................................ 43
Educational System................................................................................................................. 44
Overview ....................................................................................................................... 44
Primary & Secondary Education ................................................................................... 46
Higher Education ........................................................................................................... 46
Challenges and Responses............................................................................................. 48
Science and Technology System ............................................................................................ 50
Major S&T Institutions and Actors ............................................................................... 50
R&D Performance ......................................................................................................... 53
Government Plans for S&T Development .................................................................... 59
Kenya Vision 2030 ................................................................................................................. 62
Background ................................................................................................................... 62
Vision and Blueprints .................................................................................................... 63
Medium Term Plans ...................................................................................................... 64

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Kenya Advanced Institute of Science and Technology Feasibility Study

Flagship Projects ........................................................................................................... 66


Chapter 3. Project Rationale..................................................................................................... 71
Why Kenya Advanced Institute of S&T? ............................................................................... 71
S&T for Fast-Track Modernization ............................................................................... 71
Why a New University? ................................................................................................ 73
Why KAIST? .......................................................................................................................... 73
Historical Perspective .................................................................................................... 74
Key Contributions ......................................................................................................... 75
Current Performance ..................................................................................................... 76
Identity of the New Institute ................................................................................................... 77
Missions of the New Institute ........................................................................................ 77
Key Stakeholders ........................................................................................................... 79
Kenya Advanced Institute of S&T and Konza Techno City ................................................... 79
Why Konza? .................................................................................................................. 79
Current Status of the Konza Techno City Project ......................................................... 80
Potential Risks ............................................................................................................... 83
Chapter 4. Governance ............................................................................................................. 87
Legal Framework .................................................................................................................... 87
Special Law vs. Special Status ...................................................................................... 87
Special Benefits for Students (Industrial Experience Equivalence) .............................. 89
University Governance ........................................................................................................... 89
Governance Structures of S&T Universities in Korea .................................................. 90
Suggested Governance Structure for the New Institute................................................. 94
Board of Trustees .......................................................................................................... 95
Auditor........................................................................................................................... 96
President & Vice Presidents .......................................................................................... 96
Advisory Council & External Advisory Committee ..................................................... 98
Faculty Council ............................................................................................................. 98
Academic Organizations ......................................................................................................... 98
Academic Policy ................................................................................................................... 100
Degree Requirements .................................................................................................. 100
Admission Policy ........................................................................................................ 100
Admission Process ...................................................................................................... 101
Student Benefits and Status ......................................................................................... 101
Faculty .................................................................................................................................. 101
Special Note on the Recruitment of Top-rate Faculty and Students ........................... 103
Chapter 5. Academic Programs .............................................................................................. 105
Analytical Approaches .......................................................................................................... 105
Trade-offs in Program Selection ................................................................................. 106
STEEP Framework and Selection Criteria .................................................................. 106
Qualitative Approach ............................................................................................................ 107
Major Criteria .............................................................................................................. 107
Analysis of National Needs ......................................................................................... 108

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Kenya Advanced Institute of Science and Technology Feasibility Study

Analysis of Industrial Needs ....................................................................................... 113


Combining the Two Results ........................................................................................ 118
Quantitative Approach .......................................................................................................... 119
Domain of Choice ....................................................................................................... 122
Results ......................................................................................................................... 123
Stakeholders’ View ............................................................................................................... 128
Initial Programs and Phased Expansion ................................................................................ 131
Initial Programs ........................................................................................................... 131
Phased Expansion ........................................................................................................ 131
School Size .................................................................................................................. 133
Curriculum ............................................................................................................................ 135
Mechanical Engineering .............................................................................................. 135
Electrical & Electronics Engineering .......................................................................... 136
ICT Engineering .......................................................................................................... 137
Chemical Engineering ................................................................................................. 138
Civil Engineering ........................................................................................................ 138
Agricultural Biotechnology ......................................................................................... 139
Basic Sciences (Education & Experiment) .................................................................. 139
Sub-Fields per Program ............................................................................................... 142
Equipment and Facilities (E/F) ............................................................................................. 145
Current Status .............................................................................................................. 145
Common E/F by Program............................................................................................ 147
University-Wide E/F ................................................................................................... 151
ERP System ................................................................................................................. 151
Chapter 6. Industrial-Academic Collaboration ...................................................................... 153
Rationales for Industrial-Academic Collaboration (IAC) ..................................................... 153
Current Status ....................................................................................................................... 154
Current IAC Initiatives in Kenya ................................................................................ 154
Major Actors in IAC ............................................................................................................. 155
University Sector in IAC ............................................................................................. 156
Industry Sector in IAC ................................................................................................ 158
Government Sector in IAC .......................................................................................... 160
Best Practices for Benchmarking .......................................................................................... 162
IAC Best Practices in Korea ........................................................................................ 162
IAC Framework for the New Institute .................................................................................. 163
Potential Areas for IAC ............................................................................................... 163
Office of University-Industry Cooperation (OUIC) .................................................... 164
University Technology Holding Company & Affiliated Company ............................ 168
Industry-Linked Educational Programs ....................................................................... 168
Start-ups and Entrepreneurship Programs ................................................................... 170
Technology Transfer Support ...................................................................................... 171
Kenya-Korea Collaboration in IAC ...................................................................................... 171
University-Industry Cooperation with Korean Firms within Kenya ........................... 171

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Kenya Advanced Institute of Science and Technology Feasibility Study

Strategies for ICT-Centered University-Industry Cooperation between Kenya and


Korea 173
Plans for KAIST-New Institute University-Industry Cooperation in ICT .................. 176
Provision of KAIST EDU3.0 Program Customized for Kenyan Firms ...................... 177
Chapter 7: Architectural Plan ................................................................................................. 181
Site Overview ....................................................................................................................... 181
Geographical Location ................................................................................................ 181
Architectural Overview ............................................................................................... 182
Understanding the Site ................................................................................................ 182
Current Conditions of Konza Technology City ........................................................... 183
Climatic Condition of Konza....................................................................................... 185
Existing Infrastructure ................................................................................................. 187
Architectural Requirements .................................................................................................. 187
Architectural Plan ........................................................................................................ 187
Mechanical System Plan.............................................................................................. 188
Electrical System Plan ................................................................................................. 189
Conceptual Design ................................................................................................................ 190
Konza Technology City Master Plan .......................................................................... 190
Development Phases.................................................................................................... 191
Zoning ......................................................................................................................... 191
University Band ........................................................................................................... 193
Infrastructures .............................................................................................................. 193
Campus Plan ......................................................................................................................... 195
Land Usage .................................................................................................................. 195
Zoning ......................................................................................................................... 195
Campus ........................................................................................................................ 196
Academic Program and Size ....................................................................................... 201
Laboratory Types ........................................................................................................ 204
Dormitory Unit Type ................................................................................................... 208
Faculty/Staff Residence Unit Type ............................................................................. 209
Code and Regulation ............................................................................................................. 209
Architecture Permits ............................................................................................................. 213
Similar Project Analysis for Cost Estimation ....................................................................... 213
Strathmore University ................................................................................................. 213
University of Kabianga Kericho Kenya ...................................................................... 215
JeonBuk Science University ........................................................................................ 216
Material Cost Analysis ................................................................................................ 218
Labor Cost Analysis .................................................................................................... 219
Spon’s African Construction Cost ............................................................................... 220
Project Duration and Implementation Schedule for Construction ........................................ 221
Project Duration .......................................................................................................... 221
Chapter 8. Project Cost Estimation ........................................................................................ 225
Project Cost Overview .......................................................................................................... 225
Project Cost Summary ................................................................................................. 225
Itemized Project Cost .................................................................................................. 225

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Kenya Advanced Institute of Science and Technology Feasibility Study

PART I: Direct Project Cost ................................................................................................. 228


Direct Project Cost ...................................................................................................... 228
Consulting Cost (Construction) ................................................................................... 231
Consulting Cost (Education & Training) .................................................................... 236
Contingencies .............................................................................................................. 239
Country of Origin ........................................................................................................ 243
Part II: Detailed Operational Costs ....................................................................................... 250
Assumptions and Referential Data for Operational Cost Estimation .......................... 250
Estimates of Each Component of Operational Costs................................................... 254
Endowment Fund ........................................................................................................ 258
Thirty-Year Projection of the Operational Cost .......................................................... 261
Chapter 9. Feasibility Analysis .............................................................................................. 264
Policy Feasibility .................................................................................................................. 264
Importance of National Policy..................................................................................... 264
Policy Feasibility Analysis .......................................................................................... 265
Technical Feasibility ............................................................................................................. 266
Potential Technical Problems ...................................................................................... 266
Assessment of Technical Alternative .......................................................................... 266
Economic Feasibility ............................................................................................................ 267
Methods of Analysis .................................................................................................... 267
Cost-Benefit Analysis.................................................................................................. 267
Sensitivity Analysis ..................................................................................................... 284
Financial Feasibility .............................................................................................................. 286
Chapter 10. Pre-Requisites for Implementation ..................................................................... 288
Securing A Special Legal Status ....................................................................................... 288
Securing An Endowment Fund ......................................................................................... 288
Securing the Site Infrastructure ......................................................................................... 289
Securing Special Incentives for Top-Notch Students........................................................ 290
Securing Other Conditions for Timely Progress of the Project ......................................... 290
Chapter 11. Environmental & Social Impact Assessment ..................................................... 292
Environmental Impact Assessment ................................................................................... 292
Social Impact Assessment ................................................................................................ 292
Appendix ................................................................................................................................ 294
A. Aide Memoires ........................................................................................................................... 294
B. Official Documents Obtained from Kenya ................................................................................. 326
C. Survey Information ..................................................................................................................... 334
C1. Survey Sample .......................................................................................................................... 334
C2. Survey Questionnaire for July 2015 Sub-Field Selection Workshop ....................................... 339
D. Details of Quantitative Analysis ................................................................................................. 350
E. Degrees Offered in Top-4 Kenyan Universities in the Areas of Initial Programs ...................... 354

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Kenya Advanced Institute of Science and Technology Feasibility Study

F. Curriculum (Courses) .................................................................................................................. 362


G. List of Contacts .......................................................................................................................... 398
H. Trip Questionnaires .................................................................................................................... 404
References .............................................................................................................................. 416

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Kenya Advanced Institute of Science and Technology Feasibility Study

List of Tables
Table 1: Total Project Cost Summary ................................................................................................... 26
Table 2: Project Risks............................................................................................................................ 27
Table 3: Major Economic Indicators of Kenya ..................................................................................... 38
Table 4: Percentage Contribution of Industrial Activity to GDP in Kenya ........................................... 41
Table 5: Imports by Principal Commodity in Kenya ............................................................................ 42
Table 6: Key Crop Production in Kenya ............................................................................................... 43
Table 7: Wage Employment by Industry (2010~2013) ......................................................................... 43
Table 8: Selected Indicators on Education ............................................................................................ 44
Table 9: Student Enrollment by Sex in Top-5 Kenyan Universities ..................................................... 48
Table 10: Scientific Publications of Top 20 African Countries (1996~2014)....................................... 54
Table 11: Scientific Publications of Kenya in Global Comparison (1996~2014) ................................. 55
Table 12: Kenya's Ranking of Scientific Publications in Various Fields of Science ............................ 57
Table 13: Kenya's Rank in Global Innovation Index ............................................................................ 59
Table 14: Vision 2030 Medium-Term Plans - Issues & Challenges ..................................................... 65
Table 15: Vision 2030 Flagship Projects............................................................................................... 67
Table 16: Real GDP and Sectoral Growth Targets (2013-2017)........................................................... 72
Table 17: 2014 QS University Rankings for Top Asian Universities ................................................... 77
Table 18: East African Universities on the List of Top 100 African Universities ................................ 78
Table 19: Konza Master Plan Description............................................................................................. 80
Table 20: KOTDA Risk Assessment..................................................................................................... 85
Table 21: Governance Structures of S&T Universities in Korea .......................................................... 90
Table 22: Governance Structures of Other S&T Universities ............................................................... 93
Table 23: University Administrative Roles in Kenya ........................................................................... 97
Table 24: Summary of Analytical Approaches and Program Selection Results ................................. 105
Table 25: STEEP Framework for Program Selection ......................................................................... 107
Table 26: Differences in Views of Kenyan Experts & Stakeholders In and Outside of Kenya .......... 121
Table 27: Domain of Choice for Strategic Fields of Study (OECD Frascati Manual FOS) ............... 122
Table 28: Total Demand and Supply of Engineers in Kenya (2012~2030, by Discipline) ................. 125
Table 29: Fields of Engineering with Supply Shortage....................................................................... 127
Table 30: Fields of Engineering with Excess Supply .......................................................................... 127
Table 31: Stakeholder View on Strategic Fields ................................................................................. 129
Table 32: Fields Likely to Generate Demand for Skilled Engineers ................................................... 130
Table 33: Initial Programs in Three Faculties ..................................................................................... 131
Table 34: Phase II Programs ............................................................................................................... 132
Table 35: Experiment Courses for Each Program ............................................................................... 141
Table 36: Priority Areas for Mechanical Engineering......................................................................... 143
Table 37: Priority Areas for Electrical & Electronics Engineering ..................................................... 143
Table 38: Priority Areas for ICT Engineering ..................................................................................... 143
Table 39: Priority Areas for Chemical Engineering ............................................................................ 144
Table 40: Priority Areas for Civil Engineering ................................................................................... 144
Table 41: Priority Areas for Agricultural Biotechnology .................................................................... 145
Table 42: E/F of Top 4 Universities in Kenya .................................................................................... 146
Table 43: Common-Use E/F per Program ........................................................................................... 147
Table 44: Basic Experiment E/F per Program (Faculty I) ................................................................... 149
Table 45: University-Wide E/F ........................................................................................................... 151
Table 46: ERP System for the New Institute....................................................................................... 151

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Kenya Advanced Institute of Science and Technology Feasibility Study

Table 47: Role of Academic Research in Different Industries ............................................................ 153


Table 48: KICT's PPP Projects in ICT ................................................................................................ 154
Table 49: Number of Tertiary Education Institutions (2009~2013).................................................... 156
Table 50: Public Universities in Kenya (as of 2013) .......................................................................... 157
Table 51: Top Five Biggest Companies in Kenya............................................................................... 158
Table 52: Global Companies Headquartered in Nairobi ..................................................................... 159
Table 53: Visions, Missions and Objectives of Two Major STI Ministries ........................................ 160
Table 54: Semi-Autonomous Government Agencies in the RIT Sector ............................................. 161
Table 55: Best Practices of IAC in Other Countries ........................................................................... 163
Table 56: Management, Function, and Financing of the Office of University-Industrial Cooperation
(OUIC) ................................................................................................................................................ 164
Table 57: Distribution of Types of OUIC in Korea ............................................................................ 167
Table 58: Korean Firms Active in Kenya............................................................................................ 172
Table 59: Investment Plans for Public Infrastructure by Sector Allocated for 2012~2020 ................ 174
Table 60: Support Programs for KAIST-New Institute ICT-Centered University-Industry Cooperation
............................................................................................................................................................. 176
Table 61: Example of Team-based Projects ........................................................................................ 177
Table 62: Regional Data ...................................................................................................................... 182
Table 63: Minimum Floor Area Per Student ....................................................................................... 196
Table 64: Floor Area per Student Comparison.................................................................................... 197
Table 65: Building Space Plan ............................................................................................................ 197
Table 66: Areas for Academic Programs ............................................................................................ 201
Table 67: Area of the Cafeteria ........................................................................................................... 201
Table 68: Area of the Educational Facility.......................................................................................... 202
Table 69: Area for the Library ............................................................................................................ 203
Table 70: Area for the Hostel .............................................................................................................. 203
Table 71: Laboratory Unit Type Plan.................................................................................................. 204
Table 72: Laboratory Type Plan .......................................................................................................... 205
Table 73: Dormitory Unit Type Plan................................................................................................... 208
Table 74: CUE Code and Regulation .................................................................................................. 210
Table 75: Area per Student .................................................................................................................. 212
Table 76: Strathmore University Fact Sheet ....................................................................................... 213
Table 77: University of Kabianga Kericho Kenya Fact Sheet ............................................................ 215
Table 78: JeonBuk Science University Korea Fact Sheet: .................................................................. 216
Table 79: Material Cost Analysis ........................................................................................................ 218
Table 80: Labor Cost Analysis ............................................................................................................ 219
Table 81: Spon’s African Construction Cost Analysis........................................................................ 220
Table 82: Project Cost Summary ......................................................................................................... 226
Table 83: Construction Cost Estimates ............................................................................................... 228
Table 84: Construction Cost Analysis ................................................................................................. 229
Table 85: Construction Management Cost .......................................................................................... 230
Table 86: Fluctuation Rate of Engineering Specialists Labor Cost (Recent 5 Years)......................... 231
Table 87: Standard Fees ...................................................................................................................... 232
Table 88: Design Consulting Fees....................................................................................................... 232
Table 89: Bidding and Contract Fees .................................................................................................. 234
Table 90: Construction Supervision Fees ............................................................................................ 235
Table 91: Salary Information for Different Faculty Ranks ................................................................. 237
Table 92: Cost Estimates for Training in Kenya ................................................................................. 238
Table 93: Cost Estimates for Training in Korea .................................................................................. 239
Table 94: Total Cost for Education Consulting ................................................................................... 239

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Table 95: Inflation Rates - Kenya, Korea, and the World ................................................................... 240
Table 96: Ratio by Country of Origin ................................................................................................. 240
Table 97: Physical Contingencies ....................................................................................................... 240
Table 98: Price Contingencies ............................................................................................................. 242
Table 99: Physical & Price Contingencies (Total) .............................................................................. 242
Table 100: Shares Rate of the Construction Cost ................................................................................ 243
Table 101: Country of Origin Distribution for Equipment.................................................................. 244
Table 102: University-Wide E/F by Country of Origin ...................................................................... 246
Table 103: Departmental Equipment by Country of Origin ................................................................ 247
Table 104: Experimental Equipment by Country of Origin ................................................................ 249
Table 105: Operational Cost Classifications of Top Korean Universities .......................................... 250
Table 106: Key Assumptions for Operational Cost Estimation .......................................................... 251
Table 107: Faculty Salaries of Kenyan Public Universities (2009) .................................................... 253
Table 108: Faculty Salaries of Kenyan Public Universities (2014) .................................................... 253
Table 109: Cost Estimation for Wages & Salaries .............................................................................. 254
Table 110: Cost Estimation for Student Affairs .................................................................................. 255
Table 111: Cost Estimation for Research Affairs................................................................................ 255
Table 112: Cost Estimation for Current Costs .................................................................................... 256
Table 113: Distribution of Current Cost Items .................................................................................... 256
Table 114: Ten U.S. Universities with the Largest Endowments ....................................................... 258
Table 115: Suggestions for Endowment Fund Operation ................................................................... 259
Table 116: Potential Technical Problems ............................................................................................ 266
Table 117: Cost Distributions.............................................................................................................. 268
Table 118: Project Cost in Current Value ........................................................................................... 268
Table 119: Project Direct Cost in Present Value (r=12%) .................................................................. 269
Table 120: Local Spending out of Institute Operation ........................................................................ 271
Table 121: Direct Benefits in Current Value ....................................................................................... 273
Table 122: Direct Benefits in Present Value (r=12%) ........................................................................ 274
Table 123: Number of Graduates from the New Institute ................................................................... 276
Table 124: Average Salaries of Kenya ................................................................................................ 277
Table 125: Employment Effect and Implicit Contribution to Kenyan GDP in Current Value ........... 278
Table 126: Employment Effect and Implicit Contribution to Kenyan GDP in Present Value (r=12%)
............................................................................................................................................................. 279
Table 127: R&D Contribution to Kenyan GDP in Current Value ...................................................... 281
Table 128: Employment Effects and R&D Contribution to GDP ....................................................... 282
Table 129: NPV Derivation ................................................................................................................. 284
Table 130: Results of the Sensitivity Analysis .................................................................................... 284
Table 131: Social Impact Assessment I............................................................................................... 292
Table 132: Social Impact Assessment II ............................................................................................. 293
Table 133: Kenyan Experts (with a PhD or equivalent experience) ................................................... 334
Table 134: Kenyan Experts (with a Master’s degree or equivalent experience) ................................. 336
Table 135: Korean ODA Experts ........................................................................................................ 338
Table 136: Alternative Modes of Assessment for STEEP-AHP Analysis .......................................... 351
Table 137: Department Rankings from Quantitative Analysis ........................................................... 352
Table 138: S&E Degrees Offered in Top-4 Kenyan Universities ....................................................... 354

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Kenya Advanced Institute of Science and Technology Feasibility Study

List of Figures
Figure 1: Africa and Its Regions ........................................................................................................... 31
Figure 2: Map of Kenya and Its 47 Counties ........................................................................................ 32
Figure 3: Kenya's Population Structure ................................................................................................. 33
Figure 4: Kenya's Presidents ................................................................................................................. 36
Figure 5: Kenya's GDP Growth Rates ................................................................................................... 38
Figure 6: Changes in Growth Rates (Kenya vs. Other African Countries) ........................................... 40
Figure 7: Kenya's Monthly Inflation Rates (2014~2015)...................................................................... 40
Figure 8: Ministry of Education Budget as % of Total Government Budget ........................................ 45
Figure 9: List of Universities Authorized to Operate in Kenya ............................................................ 47
Figure 10: Kenya National Innovation System ..................................................................................... 51
Figure 11: Management of S&T in Kenya ............................................................................................ 52
Figure 12: Kenya's Gross R&D Expenditure (% GDP) in Comparative Perspective ........................... 54
Figure 13: Kenya’s Scientific Publications (2000~2011) ..................................................................... 56
Figure 14: Patent Applications in Kenya (2002~2012) ......................................................................... 56
Figure 15: Kenya Vision 2030 Architecture ......................................................................................... 63
Figure 16: Major Exporters and Importers of Kenya ............................................................................ 72
Figure 17: KAIST and South Korea's Development Trajectory ........................................................... 75
Figure 18: Alma Mater of Samsung Executives (as of 2013) ............................................................... 76
Figure 19: Key Stakeholders for the Kenya KAIST Project ................................................................. 79
Figure 20: Konza Master Plan Land Use .............................................................................................. 81
Figure 21: Konza Techno City Phase 1 Targeting Knowledge Workers .............................................. 82
Figure 22: Konza Techno City Programming Status ............................................................................ 83
Figure 23: Konza Blueprint ................................................................................................................... 84
Figure 24: Konza Construction Site (as of July 2015) .......................................................................... 85
Figure 25: Logical Framework of University Accreditation ................................................................. 88
Figure 26: Suggestion for the Governance Structure for the New Institute .......................................... 95
Figure 27: Flow of Qualitative Analysis for Program Selection ......................................................... 110
Figure 28: Program Selection Criteria and Sub-Criteria ..................................................................... 119
Figure 29: Results for Absolute Importance of Program Selection Criteria ....................................... 121
Figure 30: Results for Relative Importance of Program Selection Criteria......................................... 121
Figure 31: Total Demand and Supply of Engineers in Kenya (All Engineers) ................................... 128
Figure 32: S&T Park in the Kenyan National Innovation System ...................................................... 155
Figure 33: Models of University-Industrial Collaboration .................................................................. 156
Figure 34: Project Location ................................................................................................................. 181
Figure 35: Konza Techno City Location ............................................................................................. 183
Figure 36: Site Location ...................................................................................................................... 184
Figure 37: Site Photograph I ............................................................................................................... 185
Figure 38: Site Photograph II .............................................................................................................. 185
Figure 39: Precipitation in Nairobi ...................................................................................................... 186
Figure 40: Rainy Days in Nairobi ....................................................................................................... 186
Figure 41: Temporary Water Tower.................................................................................................... 187
Figure 42: KOTDA's Master Plan ....................................................................................................... 190
Figure 43: Konza Phasing Diagram .................................................................................................... 191
Figure 44: Master Plan Phase I............................................................................................................ 192
Figure 45: Master Plan Phase I & IA .................................................................................................. 192
Figure 46: University Band ................................................................................................................. 193
Figure 47: Konza Infrastructure .......................................................................................................... 194
Figure 48: Land Use ............................................................................................................................ 195

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Figure 49: Campus Zoning .................................................................................................................. 196


Figure 50: Campus Plan ...................................................................................................................... 199
Figure 51: Aerial View of Campus ..................................................................................................... 200
Figure 52: Dry Laboratory .................................................................................................................. 206
Figure 53: Web Laboratory ................................................................................................................. 207
Figure 54: Faculty/Staff Residence Unit Type .................................................................................... 209
Figure 55: Permit Acquisition Process ................................................................................................ 213
Figure 56: Strathmore University Campus Photograph ...................................................................... 214
Figure 57: Strathmore University Business School Blueprints ........................................................... 214
Figure 58: Strathmore University Management Science Building Blueprints .................................... 215
Figure 59: Strathmore University Student Center Blueprints ............................................................. 215
Figure 60: University of Kabianga Kericho Kenya ............................................................................. 216
Figure 61: JeonBuk Science University Korea ................................................................................... 217
Figure 64: AHP Weighting Results ..................................................................................................... 350

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Kenya Advanced Institute of Science and Technology Feasibility Study

List of Abbreviations
AfDB African Development Bank
BOT Board of Trustees
BPO Business Processing Outsourcing
BSSC Business Start‐up Support Center
CEO Chief Executive Officer
CES COMESA-EAC-SADC
COMESA Common Market for Eastern and Southern Africa
CS Cabinet Secretary
CUE Commission for University Education
DGIST Daegu Gyeongbuk Institute of Science and Technology
EAC East African Community
EBK Engineers Board of Kenya
ERB Engineers’ Registration Board
F/S Feasibility Study
FONN Fiber Optic National Network
FOS Field of Science and Technology
GCCN Government Common Core Network
GDC Government Data Center
GDP Gross Domestic Product
GII Global Innovation Index
GIST Gwangju Institute of Science & Technology
GNI Gross National Income
GoK Government of Kenya
HRD Human Resources Development
ICT Information and Communication Technology
ICTA Information Communication Technology Authority
IFC International Financial Corporation
INSEAD European Institute for Business Administration
IPR Intellectural Property Rights
IRR Internal Rate of Return
ITES Information Technology Enabled Sector
JKUAT Johmo Kenyatta University of Agriculture and Technology
KAIST Korea Advanced Institute of Science and Technology
KAIST Korea Advanced Institute of Science and Technology
KARI Kenya Agricultural Research Institute
KBS Kenya Bus Service
KEMRI Kenya Medical Research Institute
KENCA Kenya Engineering and Consulting Association
KENET Kenya Education Network
KICT Kenya ICT Board
Kenya Industrial Property Institute (formerly Kenya Industrial Property
KIPI
Office)

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Kenya Advanced Institute of Science and Technology Feasibility Study

KIRDI Kenya Industrial Research and Development Institute


KNBS Kenya National Bureau of Statistics
KOICA Korea International Cooperation Agency
KOTDA Konza Technopolis Development Authority
KOTRA Korea Trade-Investment Promotion Agency
Ksh/KSH Kenyan Shillings
KTC Konza Techno City
KTC Konza Technopolis City
kWh Kilowatt-hour
LPDP Local Physical Development Plan
LTE Long-Term Evolution
MASL Meters Above Sea Level
M/M Man-month
MDP Master Delivery Partner
MIC Ministry of Information, Communications, and Technology
MIED Ministry of Industry and Enterprise Development
MMU Multimedia University
MOE Ministry of Energy
MOEST Ministry of Education, Science, and Technology
MS Master of Science
MTP Medium Term Plan
NACOSTI National Commission of Science, Technology and Innovation
NEMA National Environment Management Authority
NESSP National Educational Sector Support Program
NIMCC National Inter-Ministerial Coordinating Committee
NIS National Innovation System
NM-AIST Nelson Mandela African Institution of Science & Technology (Tanzania)
NMR Nairobi Metropolitan Region
NOFBI National Optic Fiber Backbone Infrastructure
NPV Net Present Value
NRF National Research Foundation
ODA Official Development Assistance
ODL Open and Distance Learning
OECD Organization of Economic Cooperation and Development
OUIC Office of University-Industry Cooperation
PCP Project Concept Paper
PEA Project Executing Agency
PhD Philosophy of Doctor
PIT Project Implementation Team
PM Project Manager
PMU Project Management Unit
POSTECH Pohang University of Science & Technology
PPP Public-Private Partnership
PS Principal Secretary

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Kenya Advanced Institute of Science and Technology Feasibility Study

QS Quacquarelli Symonds
RIIP Regional Integration Implementation Programme
RIMS Research Information Management System
RISM Regional Integration Support Mechanism
S&T Science and Technology
SADC Southern African Development Community
SME Small and medium-sized enterprise
SOE State-owned Enterprises
SSA Sub-Saharan Africa
ST&I Science, Technology, and Innovation
STEM Science, Technology, Engineering and Mathematics
TIVET Technical, Industrial, Vocational, and Entrepreneurship
TLO Technology Licensing Office
UASU University Academic Staff Union

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Kenya Advanced Institute of Science and Technology Feasibility Study

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Kenya Advanced Institute of Science and Technology Feasibility Study

Executive Summary

This report contains an interim assessment of the Feasibility Study (F/S) for the Establishment
of Kenya Advanced Institute of Science and Technology (the New Institute or Kenya KAIST
hereafter). It provides a detailed account of:
(i) the rationales for the New Institute (why Kenya needs a new S&T-centered institution
of higher education and research);
(ii) the identity of the New Institute as an advanced science and technology university (what
it should look like);
(iii) the strategic areas of research and education of the New Institute (what it should do);
(iv) the collaboration programs of the New Institute (how it should work together with
industries);
(v) the governance structure of the New Institute as a higher-educational institution (how it
should operate);
(vi) the cost of building the New Institute (how much it would take to establish and operate);
(vii) the economic/technical/policy feasibility of this project; and
(viii) the potential environmental and social impacts.

Project Background
 This project was initially conceived in late 2013 as a project to upgrade the Multimedia
University in Nairobi, Kenya, by expanding its graduate programs. During the early F/S
work conducted by a consortium comprised of Korea Advanced Institute of Science and
Technology (KAIST), Korea Development Institute School (KDIS), and Samoo Architects
and Engineers in 2014, it was concluded that a new independent university needs to be set
up in order to introduce a truly innovative approach to higher education in science and
technology (S&T). The project was then converted to the one establishing a new S&T-
centered university. Yet due to the disagreement over the identity of this new university
among the consortium members, the F/S was briefly suspended in late 2014. With KDIS
withdrawn from the consortium, the F/S resumed in early 2015.
 The project is based on the premise that S&T as the engine of modern economic growth can
and should be harnessed for Kenya’s fast-track modernization, and key to this effort is the
generation of highly skilled engineers and scientists who can put their knowledge and skills
into industrial applications and social problem-solving activities.
 While Kenya has already numerous higher-education institutions, they are mostly deficient
in high-quality S&T education and research with many bright students giving up the STEM

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(S&T and Mathematics) careers or leaving the country for better education opportunities
abroad. Building a new S&T-centered university will not only help to stem Kenya’s serious
brain drain problem but contribute to the nation’s goal to become a middle-income country
by 2030 in the long run.

Rationales
 No one doubts the value of science & technology (S&T) for industrial growth, national
security, quality of life, and other lofty goals. The question to ask for whether Kenya needs
a new institution in S&T is not whether S&T is needed but where it is needed and why.
 While Kenya already has a reasonable number of higher-educational institutions, most
existing universities serve general educational missions without a clear strategy to take
advantage of S&T potentials for economic growth and social development. Given that
human capital, especially in S&T, is essential for knowledge-based economy and sustained
growth with innovation, the production of well-trained graduates with both theory and
practical knowledge is crucial for upgrading the Kenyan economy.
 Established in 1971 with the vision of generating future generations of highly qualified
scientists and engineers serving the nation, KAIST offers an excellent model for Kenya’s
plan to enhance STEM education with problem-solving skills and hands-on experience.
KAIST’s unique industrial partnerships such as collaboration with Samsung and other
global companies as well as numerous student start-ups exemplifies the industrial relevance
of its research and education.

Identity
 The mission of the New Institute is to i) educate highly-qualified scientists and engineers
with both theory and practical knowledge for the future industry in Kenya and East African
region, and ii) to conduct socially relevant R&D to improve national competitiveness and
transform Kenya into an industrializing middle-income country as envisioned in Kenya
Vision 2030.
 While the mission of the New Institute cannot be entirely unique given other universities
and institutes striving also for excellence, the New Institute should not duplicate their
efforts. The only way for the New Institute to be distinguishable from other universities of
longer histories is to establish and maintain a high standard of quality in research and
education from the very beginning. It should not compromise on the quality of faculty and
incoming students, the rigor of academic curricula, and the social and economic relevance
of the research projects carried out. This requires a strong motivation and commitment by
the government and administrators, as well as a personal dedication on the part of faculty
members and students.
 The New Institute will have an invaluable effect on Kenya’s future economy to demonstrate
that higher education is for not only learning theories but also creating new values for

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society. In the long run, it will serve communities and regions beyond Kenya, especially the
East African Community given Kenya’s dominance in this region.

Strategic Areas
 In order to identify strategic areas for research and education of the New Institute, the F/S
team relied on multiple approaches – (i) qualitative, (ii) quantitative, and (iii) GAP
approach. It utilized the STEEP (Social/Technological/Economic/Environmental/Political)
framework for criteria of selection, as the New Institute is to make nation-wide impact, not
limited only to industrial promotion. The STEEP selection criteria used in the identification
of strategic areas are: (i) social relevance, (ii) technological upgrading, (iii) economic
utility, (iv) educational environment, and (v) political support.
 The qualitative approach is based on documentary analysis of Kenya Vision 2030 and the
information provided by the Kenya Association of Manufacturers (KAM). In light of the
Government of Kenya’s development initiatives embodied in Vision 2030 and industry
demands in various sectors specified in KAM’s documents, the qualitative study identified
key fields of study (FOS) that are of relevance to the sector in general, the long- and short-
term objectives and flagship projects, and challenges and limitations of each sector. By
mapping various fields of study to sectoral needs according to academic value
(technological and educational), and industrial value (social-political-economic), the
qualitative study narrowed down strategic fields of study into 8 fields contributing to i)
foundation building, ii) social needs, and iii) industrial needs, and 3 fields devoted to
optimization and planning.
 The quantitative analysis draws on the Analytic Hierarchy Process (AHP) to evaluated 33
academic departments following OECD’s official FOS classification on 9 indicators
capturing the aforementioned STEEP criteria: social relevance (quality of life and public
health), technological upgrading (academic excellence and technological excellence),
economic utility (industrial contribution and job market demands), educational environment
(field redundancy), and political support (inclusion in national agenda and flagship
projects). Applying the weights derived from the AHP surveys, the quantitative study
identified 8 fields of study composed of 3 core and 5 optional fields.
 The GAP approach is predicated upon the analysis of demand and supply for highly skilled
engineers. Based on the assessment of engineering manpower by Engineers Board of
Kenya, 5 fields of engineering are identified suffering supply shortage.
 Based on these multiple approaches as well as intensive discussions with Kenyan
stakeholders during the field trips, the F/S Team recommends six initial programs housed
in three faculties as follows: Faculty I (Mechanical Engineering, Electrical & Electronics
Engineering, ICT Engineering), Faculty II (Chemical Engineering, Civil Engineering,
Agricultural Biotechnology), and Faculty III (Basic Sciences & Experiments). The F/S
Team also proposes phased expansion of the New Institute for the timespan of ten years
consisting of two phases.

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Collaboration
 In order to maximize its industrial contribution and social relevance, the New Institute will
actively engage itself in collaboration with domestic and international actors. For mutually
beneficial collaboration, the New Institute needs a gradual approach in which common
interests between collaboration partners are identified first with collaboration platforms
jointly designed afterward. The three-stage implementation procedure for effective
industry-university-government collaboration is proposed in which initial government-
driven sponsorship is gradually replaced with industry-driven sponsorship.
 The current industry profile of Kenya reveals the dominance of agriculture and tourism-
related services with rapid growth of ICT-based services in terms of output and
employment. The R&D performance of Kenya is recently improving in both scientific
publications and patents. The government sector has also started to take an active role as
attested by various public-private partnerships such as the Konza Techno City project. As
a hub of East Africa, Nairobi has a number of global companies and international
organizations headquartered to serve the region and the continent. All together, these
conditions offer unique opportunities for the New Institute to take advantage of to create a
triple-helix network of innovation.
 It is thus recommended to create offices or centers in full charge of university-industrial
collaboration as well as to offer chances to link to industries such as internships, start-up
education, and technology transfer support.

Governance
 Although many stakeholders will be involved in the founding process of the New Institute,
in order to ensure the highest quality of research and education, it should be an independent
organization and independently operated. To this end, the New Institute is recommended to
set up as a “specialized degree-awarding institution” (per Universities Act 2012 Clause 24)
with a separate law allowing institutional autonomy in faculty/student recruitment, financial
sponsorship from the government, adequate compensation for faculty and research staff,
and an independent board of trustees.
 The New Institute will be governed by the Board of Trustees in possession of final authority,
which will be comprised of government representatives, internationally prominent scholars,
and distinguished members from academic and industrial societies. It will be monitored and
guided by the Auditor, the Advisory Council, and the External Advisory Committee.
Expected to be a person of academic reputation, administrative ability, and spiritual
devotion to the institution, the President as a chief executive officer will be in charge of
day-to-day decision-making on academic and administrative matters.
 In order to recruit professors with excellent education and research capabilities it is
recommended to provide excellent work environment, competitive salary, and research
funds. The work environment shall encourage in-depth discussion and creative thinking,
while appropriate funds for research and development (R&D) shall be provided at least at
the initial stage. Then, based on these outcomes, professors will be able to attract more R&D

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funds from Government and industries. Also, to get attention from qualified people in the
globe, the salary shall be competitive to other discipline and hopefully to other countries.
 To attract top students in Kenya and East African Community, the New Institute should
have top-class professors and research output. However, it is also important to show the
future career after graduation. In this context strong industrial collaboration is essential, and
Korea may help to provide the connection. Also, the New Institute should adopt a rigorous
and unique admission procedure, possibly ahead of the other universities in Kenya, to attract
top-notch students.
 It is important to provide academic environment for students so that they can concentrate
on their study. Full scholarship, living expenses, dormitory, and other opportunities such as
research or teaching assistantships and study-abroad programs are important ingredients.

Costs
 The total construction cost including construction management is estimated to be
$59,460,973 (construction: $49,988,673 & construction management: $9,472,300). The
total consulting cost is estimated to be $5,153,596 for construction and $4,941,667 for
education and training.
 The contingencies costs are estimated to be $3,477,812 for physical contingencies and
$3,467,866 for price contingencies, which together total $6,945,678. The E/F purchase cost
is estimated to be $9,427,300. This includes (i) the purchases for university-wide E/F
including the ERP system ($3,910,000), (ii) the purchases for departmental common E/F
($4,702,500), and (iii) the experimental E/F ($859,800).
 The operational cost is estimated to be $151,684,119 for the one-year pre-phase and the
next ten-years. The size of the endowment fund is recommended to be 10% of the ten-year
operational cost, which is $14,920,318.

Feasibility
 The current project to build a new S&T-centered university is clearly in line with Kenya’s
national policy to develop itself into a middle-income country by 2030. In particular, the
current project is well-aligned with two recent policy changes in Kenya in the area of S&T
and higher education – Universities Act 2012 promoting the accreditation and quality
control of Kenya’s higher educational institutions and the Science, Technology, and
Innovation Act 2013 enacted to assign national priority to S&T.
 Technical complexities as to the implementation of the project range from curricular design
to faculty/student recruitment. As the F/S intensely examined the relevant data and relied
on multiple approaches to compensate for the dearth of data, it is assessed that most
technical issues regarding the operation of the university have been identified well, though
the projections based on the limited data need caution in further planning.

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 Economic feasibility is mainly checked through the cost-benefit analysis (CBA). In the
current CBA, the costs and benefits are calculated for the time frame of 30 years, as it takes
substantially long to produce tangible benefits from educational programs. The cost of 30-
year operation is estimated to be $101,303,344 (in present value at the discount rate of 12%).
Together with the construction, equipment, consulting and contingency costs, the total cost
for this project is estimated to be$192,173,304. Benefits are divided into direct and indirect
benefits. Direct benefits emanate from the spending effect from the operational expenses
that are disbursed within Kenya, which are calculated to be $61,148,804 (in present value
at the 12% discount rate). Indirect benefits include the employment effects from education
and their implicit contribution to GDP ($327,266,819) and indirect benefits from R&D
activities ($51,434,904), which total $439,850,527. Therefore the benefit-cost ratio is
derived as 2.289, which also turns out to be robust in sensitivity analysis (with the ratio still
being greater than one in the worst case of benefit/cost changes).

Environmental & Social Impacts


 Since the current project uses the government-procured land that already obtained the
approval of Kenya’s environmental agency, National Environment Management Authority
(NEMA), the prima facie evidence can be said to exist that the project does not impose
serious adverse impacts on the natural environment of wide areas. Yet the Konza
Technopolis Development Authority (KOTDA) overseeing the infrastructure construction
of Konza Techno City will take responsibility to undertake the approval process for any
environment-related matters for the specific site that the New Institute is to be built, the
University Band of Konza Techno City.
 Social impacts of the current project include both potentially positive and negative impacts.
For the former, at least three beneficial impacts can be identified – upgrading the quality of
higher education, improving the S&T education in secondary education, and diffusing the
creativity culture and work ethic in Kenyan society. For the latter, it must be noted that the
introduction of another special-status university can exacerbate competitive pressures on
higher education and secondary education and some rules and procedures for the New
Institute may collide with the traditional domestic conventions and customs.

Concluding Remarks
 The current project of building a new higher educational institution focused on S&T is
expected to be mutually beneficial to Kenya and Korea. To the latter, in particular, this
project will make several contributions. One is to help Korea to gain the experience and
reputation in more advanced forms of overseas development assistance (ODA). In addition,
the project will help to build a new mode of science-based ODA as it involves long-term
institutional collaboration on S&T backed by the commitment of both governments.
Obviously, the New Institute being the driving force for the upgrading of the Kenyan
economy, it will also serve to expand the future markets for Korean companies in Africa.

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Chapter 1. Feasibility Study (F/S) Overview

Project Name
 The name of the project whose feasibility is examined in this report is the Establishment
of Kenya Advanced Institute for Science and Technology Project.

 While the actual name of the institution to be set up will be ultimately determined by
Kenyan stakeholders, the following names have been proposed during this Feasibility
Study (F/S): Kenya Academy of Science & Technology (KAST), Kenya University of
Advanced Science & Technology (KUAST), and Kenya Institute of Technology (KIT).

 This report will refer to the new institution as the “New Institute.” Yet “Kenya KAIST”
will also be used depending on the context, as it was the name initially proposed and
circulated among Kenyan stakeholders.

Project Objectives
 This feasibility study (F/S) is to examine the feasibility of creating and sustaining a
higher educational institution centered on science and technology (S&T) in Kenya so
as to utilize the potentials of S&T for its fast-track modernization.

 The objectives of the New Institute project are:


(i) To provide high-quality education in S&T so as to generate high-skilled engineers
and scientists with both theory and practical knowledge, and
(ii) To conduct socially relevant research and development (R&D) to improve national
competiveness and transform Kenya into an industrializing middle-income country as
envisioned in Kenya Vision 2030.

Project Background
 This project was initially conceived in 2013 as the project to upgrade the Multimedia
University by expanding its graduate programs with a focus on its niche field, Information
and Communication Technology (ICT).
 The initial consortium undertaking the current F/S was comprised of three entities – Korea
Advanced Institute of Science and Technology (KAIST), Korea Development Institute
School (KDIS), and Samoo Architects & Engineers.
 During the early phase of the F/S work in 2014, the F/S Team arrived at the conclusion that
in order to help the Project to contribute meaningfully to Kenya Vision 2030 by producing

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highly skilled engineers and scientists, it is crucial to build a new university rather than
improving the existing university.
 In the meantime, the original consortium members began to disagree on the identity of the
new institution and direction of the project, resulting in KDIS withdrawing itself from the
Consortium. The F/S was suspended briefly due to the reshuffling of the consortium. It was
resumed in early 2015 with KAIST and Samoo forming a new consortium.

Project Rationales and Expected Outcomes


 One of the most important rationales for the current project to build a new higher education
institution focused on S&T lies in the great potential that this initiative holds for Kenya’s
fast-track modernization. Key to the initiative is the strategic deployment of S&T research
and education for social and economic development goals.

 If launched successfully, the New Institute will become an educational institute of


international reputation to produce well-trained S&T experts for Kenya and also for the
larger East African region.

 By providing high-quality education in S&T, Kenya and the proposed New Institute will
be able to strengthen their positions as the focal points of the East African region
attracting best talents as well as business investment crucial for national and regional
prosperity.

 By focusing on research and education of national strategic importance, the New Institute
is expected to maximize the effects of S&T for industrialization and long-term growth. In
particular, with strategic collaboration with industries, the New Institute will be able to
contribute to meeting the current and future demands of Kenyan industries and
strengthening the overall competitiveness of the private sector.

Project Costs
 The total project cost is estimated to be $91,747,125 as summarized below. In addition to
the project cost, the F/S Team has estimated the 10-year operational cost to be
$151,684,119 including the one pre-phase year cost.

Table 1: Total Project Cost Summary

(Unit: USD)

Project Risks

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Kenya Advanced Institute of Science and Technology Feasibility Study

 Building a new higher educational institution requires substantial long-term commitment


of the Kenyan government as well as key stakeholders of Kenyan society. The F/S team is
keenly aware of consequences of failure to address potential risks and devise measures to
redress them. One guiding principle in analyzing project risks will be to consider all the
details in the local context, i.e., from the standpoint of the recipient country rather than of
the donor country.

 While not exhaustive, the following list of risks contains some of the most prominent risks
that can be anticipated at the planning stage.

Table 2: Project Risks

Risk 1: Financial uncertainty

o The New Institute Project is a large-scale operation requiring huge financial


resources.
o As the Kenyan government like any public authorities has to consider multiple
national priorities, its financial support for the Kenya Advanced Institute of S&T
Project may dwindle in case other priorities prevail on the government agenda.

Risk 2: Difficulty in recruiting high-quality students and faculty

o Successful recruitment of best talents depends not only on funding but also on
numerous factors such as overall research and education environments.
o Since it takes long years of commitment and build-up to provide satisfactory
environments for research and education as well as living itself, the New
Institute may face great difficulty in attracting high-quality students and faculty
even if it provides enough funding.

Risk 3: Sociopolitical instability

o While Kenya is perhaps the most democratic country in East Africa, its political
stability is still low. Furthermore, social insecurity is also a huge problem as
seen in recent terrorist attacks.
o Since the New Institute is proposed to be a fully government-funded university,
political and social instability is one of the biggest threats to its sustainability.

Risk 4: Delay in the Konza Techno City Project

o With close affinity of Konza Techno City and the values espoused by Kenya
KAIST, the New Institute is to be established in Konza Techno City. Therefore,
the successful establishment and further growth of the New Institute is
inevitably tied to the timely progress of the Konza City Project.
o Given that the Konza City Project is a public-private partnership endeavor with
the private sector’s importance growing heavily in the later stages, its failure to

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attract private investment will pose a serious threat to the establishment of the
New Institute.

Risk 5: Level of support from the Korean side

o While it has been rhetorically emphasized that Korea KAIST needs to export its
successful case of building a top-tier S&T-centered university to developing
countries, S&T Overseas Development Aid (ODA) is not currently a
mainstream project of Korea KAIST nor on the major agenda of Korea’s S&T
policy.
o Thus the support from Korea KAIST might not be as strong as expected, and
ministerial support from the Korean government may not be well coordinated.

Methodology
 This study utilizes both quantitative and qualitative methods to uncover critical facts,
trends, and patterns relevant to the assessment of the feasibility and sustainability of the
Project.
 Quantitative methods consist of statistical analysis utilizing the data from the following
resources:
o Kenya Open Data Portal (https://opendata.go.ke/)
o Kenya National Bureau of Statistics (www.knbs.or.ke)
o World Bank’s World Development Indicators (WDI) (data.worldbank.org)
o US Central Intelligence Agency (CIA) World Factbook
(https://www.cia.gov/library/publications/the-world-factbook/)
o African Development Bank (AfDB) Documents
(http://www.afdb.org/en/documents/)
o SCImago Journal & Country Rank (www.scimagojr.com)
o Open Aid Data (www.openaiddata.org)
 Qualitative methods include literature reviews, in-depth documentary analysis, interviews
of various stakeholders through field trips and workshops.
o Literature Review: (i) review of Kenya education and legal regulations, (ii)
review of current Kenya education, science and technology policy, and future
policy plans, (iii) evaluation of similar universities and key educational
programs in Kenya and East Africa
o Visits to Kenya to meet local authorities and holding workshops (i) to
understand the current status of science and technology (S&T) in Kenya, (ii) to
understand the current levels of higher education in Kenya, (iii) to devise the
operational and maintenance strategies for Kenya KAIST with a proper

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Kenya Advanced Institute of Science and Technology Feasibility Study

understanding of current infrastructure and operation of universities in Kenya,


(iv) to find out the regulatory conditions for construction as well as
construction-related costs in Kenya with interviews or surveys of Kenyan
engineers and technicians, and (v) assess the current status of educational
facilities/equipment and procurement procedures
o Interviews and surveys of Kenyan experts including Kenyan professionals
studying at Korea KAIST as students, Kenyan scholars currently working in
more advanced countries, and Kenyan stakeholders residing in Kenya.

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Kenya Advanced Institute of Science and Technology Feasibility Study

Chapter 2. Project Context

Geography and Demography


Geography

Note: Blue (North Africa), Red (East Africa), Orange (Central Africa), Green (West Africa),
Yellow (South Africa)
Figure 1: Africa and Its Regions

 Kenya is located in eastern Africa, along the equator, and covers an area of 582,650 km2.
The landmass includes 13,400 km2 of water (mainly Lake Turkana part of Lake Victoria).
Land boundaries run a total of 3,477 km, sharing with Ethiopia, Somalia, Sudan, Tanzania,
and Uganda.

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 The southeast part of the country faces the Indian Ocean, with a coastline of 536 km.
Topographically, the coastline provides a low plain, while most of the inland region is
comprised of semi-arid, bush-covered plains. The southwest region is made up of fertile
grasslands and forests, called the ‘Kenya Highlands,’ which is one of the most successful
and productive agricultural regions in Africa. To the north of Nairobi lies the Great Rift
Valley, wherein lies Kenya’s highest mountains, which also descend westward to Lake
Victoria. Kenya’s two principal rivers, Tana and Athi, flow southeast to the Indian Ocean
(Library of Congress 2007).

Figure 2: Map of Kenya and Its 47 Counties

 Kenya has a mild yet varied climate, which is a tropical along the coast and arid in the
inland. The weather is hottest in February and coolest in July, with temperatures ranging
from 13°C to 28°C, and 11°C to 23°C, respectively. Nairobi, which has an elevation of
1,820 meters above sea level, has very mild climate throughout the year. Intermittent
droughts affect most regions, with less than 15% of the country, mostly in the southwestern
highlands and the coastal area, receiving around 760 mm of rain a year. Other parts
experience two seasons, wet and dry. August is the driest with 24 mm of rainfall in the

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average, and a period of “long rains” in April comes with 270 mm of rain on average (AfDB
2014).
 The largest cities in Kenya are Nairobi, the capital city, Mombasa the principal seaport, and
Kisumu the main port city on Lake Victoria. Smaller cities include Nakuru and Eldoret,
which serve as commercial and industrial centers in eastern and western Kenya,
respectively. The urban population amounts to 24 percent of the entire population (2011),
with a 4.36 percent annual rate of urbanization (2010-2015 estimates) (CIA 2014).

Demography
 Kenya has a population of approximately 45 million with a growth rate of 2.11 percent (CIA
2014). Its population structure is distinctively skewed towards young generations, having
an “expanding” population pyramid typical of developing countries.

Source: UN Department of Economic and Social Affairs (2014)


Figure 3: Kenya's Population Structure

 The Kenyan population is a rich mix of ethnicities, made up of 40 different tribal groups.
The Kikuyu is the largest ethnic group, making up 22% of the total population. Other
relatively larger tribes include the Luhya (14%), Luo (13%), Kalenjin (12 %), and Kamba
(11%). The official languages of Kenya are Swahili and English, although many other tribal
languages are also commonly spoken amongst the people (Library of Congress 2007).
 Kenya has a rapidly expanding middle class with a human development index (HDI) above
the sub-Saharan African average, but its society still deals with economic disparities,
showing that “The richest 10% of households own about 36% of total wealth and the poorest

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10% own less than 2%” (AfDB 2014). The estimated level of poverty in Kenya is 46%,
with rural areas demonstrating higher poverty (49%) compared to urban areas (33.7%).
 Infant mortality rates have slightly improved from 58 per 1000 live births in 2008 to 52 in
2011, but maternal mortality has increased from 414 to 488 per 100,000 births during the
same period, which is a stark deviation from the UN’s Millennium Development Goals
(MDGs) target of 147. Free maternal health care services and free anti-retroviral drugs have
been introduced to prevent perinatal transmission of HIV. Access to health facilities and
medication is also free for children under five.
 However, tropical diseases such as malaria, tuberculosis and HIV have long been serious
public health problems in Kenya, with the government recently declaring HIV/AIDS as a
national disaster. According to a government report, “Since 1984, HIV/AIDS has killed
more than 1.5 million Kenyans, and more than 3 million Kenyans are HIV positive. The
prevalence rate for women is nearly twice that for men (Library of Congress 2007).

Regional Context
 East African nations have forged and maintained a strong confederation since the colonial
area, when an organization for coordinating public services between Kenya, Uganda and
Tanganyika was set up by the settlers. This confederation underwent several changes until
it took its current form as the East African Community (EAC) in 2000. Kenya is also a
member of the CES Tripartite Arrangement, established in 2008 between EAC, the
Common Market for Eastern and Southern Africa (COMESA) and Southern African
Development Community (SADC). The Tripartite Arrangement sets visions and regional
strategic objectives for both Eastern and Southern Africa, and is also actively supported by
AfDB. AfDB regards regional integration as its core mandate, and underpins its Regional
Integration Strategy on the strategic frameworks of the CES Tripartite Arrangement (AfDB
2010). Currently, the 4th EAC Development Strategy is underway.
 More recently, Kenya has received a third tranche for its Regional Integration
Implementation Program (RIIP) under the Regional Integration Support Mechanism
(RISM). The fund was established by COMESA and availed under the European
Development Fund (EDF), and the total fund endowed to Kenya sums to USD 6.11 million
(Ksh 630 million).
 This program is implemented through the National Inter-Ministerial Coordinating
Committee (NIMCC) under the leadership of the National Treasury, which brings together
the Kenya Association of Manufacturers, the Ministry of Foreign Affairs and International
Trade, the State department of Transport, State Department of Fisheries, State Department
of Agriculture, State Department of East African Affairs, Kenya Revenue Authority, and so
on. The funds will be used for the reduction of non-tariff barriers, harmonization of
standards to facilitate trade, harmonization of road transport charges across the region,
harmonization of the axle lad limits, harmonization of vehicle dimensions, and so on
(MyGov.go.ke, accessed on May 15, 2015).

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 Kenya houses the African headquarters of many international companies, such as Bosch,
Cisco, Coca Cola, Google, LG, Nestle, Pfizer, and Toyota. Kenya has maintained a position
of economic leadership in the region for a long time, and has thus been the largest and most
advanced economy. However this position is no longer secure as economic activity
dwindled more recently, especially since the post-2008 election violence.
 Kenya had once been the prime choice for foreign investors in the 1960s and 1970s, but due
to government malfeasance and politically-driven economic policies, corruption, lack of
public services and poor infrastructure, FDI has decreased into the level of the 1980s
(KPMG 2012). Today, where as some raise concerns that Kenya is lagging behind in terms
of FDI compared to its neighboring countries (Business Daily Africa, accessed on June 10,
2015), others argue that Kenya still maintains its dominant position in terms of attracting
foreign capital (The East African, accessed on June 10, 2015).
 The coastal area of Kenya has served as an important outpost for trade with the rest of the
world. Mombasa, the second largest port in the region after Durban, is positioned at a
strategically advantageous location for cargo transiting. However, “lack of investment in
modern cargo handling infrastructure and technology in the recent years has seriously
undermined the port’s efficiency, causing long delays” and an escalation of costs of doing
business (AfDB 2008). The government has acknowledged this problem and urged private
investment to support rising demands.

Political Context
Political Leadership
 Kenya became a British colony in 1885, achieving its independence in 1963. The
independence movement was directed by an armed Kikuyu-led insurrection led by Jomo
Kenyatta, a British-educated Kikuyu, who later became the first president of the Republic
of Kenya.
 Unlike its neighboring countries, Kenya has maintained considerable political stability since
its independence. One exception is the nation-wide riot, fueled by tribal tensions, after the
2007 general elections. Bringing the country to the brink of civil war, this incident revealed
Kenya’s economic and political fragility. A high-level international mediation was able to
bring the violence to a halt with the formation of the Grand Coalition Government (GCG)
in early 2008 (AfDB 2008).
 The 2013 elections resulted in a relatively smooth change of administration compared to
the 2007 elections. This peaceful transition has enabled Kenya to rebuild its political
momentum, but Kenya still scores unfavorably in the rule of law, being ranked 21st out of
52 African countries. Experts point to shortcomings of the previous constitution for having
made few provisions for political participation and institutionalizing power in the hands of
a group of elites. The new constitution of 2010 aims to address these issues, firstly by
dividing central power among three branches – Executive, Legislature and Judiciary – and
secondly by introducing the county system of local governance (AfDB 2014).

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Kenya Advanced Institute of Science and Technology Feasibility Study

Figure 4: Kenya's Presidents

Central and Local Governments


 As part of Vision 2030 and under the Constitution of 2010, Kenya is governed by a two-
tier system comprising of the national government and 47 country governments. Country
governments are distinct and independent of each other.
 With the exception of a few urban areas that will be legally designated as ‘cities’, most
urban areas will be managed by boards responsible to the country governments and
assemblies.
 Devolution therefore, is the most challenging constitutional commitment that Kenya has
made. Therefore, “Making Devolution Work” is the running theme and key flagship project
of the Political Pillar of the second medium term plan of Vision 2030.
 The 2010 Constitution has devolved considerable functions and powers to the country
governments, including:
Agriculture
Health services
Control of air and other pollution
Transport
Animal control and welfare
Trade development
Planning and development

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Kenya Advanced Institute of Science and Technology Feasibility Study

Natural resources and environmental conservation


Public works and services
Disaster management

Economic Context
Overview
 Kenya’s most valuable natural assets are arable lands and its wildlife. Wildlife, in particular,
is the key generator of income due to Kenya’s flourishing tourism industry. Tea and coffee
plantations and horticulture also play a major role in Kenya’s economy as the main export
items. Mineral resources including gold, limestone, salt, rubies and garnets, are not a major
source of national income (Library of Congress 2014).
 Strong structural imbalances cripple Kenya’s economy – imports far exceed exports,
making the country vulnerable to exogenous shocks. Over the last 5 years, exports averaged
27% of GDP whereas imports average 46%. Foreign direct investments (FDIs) to Kenya
have increased in recent years, from USD 605 million in 2009 to an estimated USD 994
million in FY 2012/13 (AfDB 2014).
 Despite Kenya’s challenging business environment, its economy is one of the largest in the
east Africa and Sub-Saharan Africa (SSA) region. Economic growth increased in the 2000s,
and the role of the private sector in identifying and exploiting new niches in horticulture
and Information and Communication Technology (ICT) has been important to Kenya’s
economic performance. The country’s private sector takes account of 97% of GDP
providing 80% of formal employment. This sector is composed of a relatively healthy and
productive formal sector, dominated by large businesses (notably, ICT, tourism and
finance).
 Economists project that enhancing capacity and productivity of small and medium-sized
enterprises (SMEs) will boost Kenya’s GDP and create more employment, but they also
warn that its poor infrastructure, security challenges, corruption and the lack of trained
human capital are encroaching on its potential competitiveness.
 Training of youth and human capital is an important issue for Kenya. About two-thirds of
Kenya’s population is of working age, and 12.7% of them are unemployed. About 80% of
Kenya’s unemployed are between 15 and 34 years of age. The highest unemployment rates
are for people around 20 years old, at 35% (AfDB 2014).
 Unemployment is most severe in urban areas, although under-employment (people working
below their productive level) is more common in rural areas, where most people work on
family farms. African Development Bank has stated in its 2014 Country Strategy Paper that
main challenges to youth employment in Kenya lie in the skills mismatch and inadequate
training for mid-level technicians and artisans in current and emerging labor markets,
especially in infrastructure (AfDB 2014).

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Kenya Advanced Institute of Science and Technology Feasibility Study

Macroeconomic Performance
 Kenya’s gross domestic product (GDP) at current US$ amounts to $60.94 billion. Its gross
national income (GNI) is, however, estimated to be $131.82 billion in current international
dollars. In per capita terms, Kenya’s GNI per capita stands at US$1,280 on the purchasing
power parity (PPP) basis and $2,890 in current international dollars (World Bank 2015).
Kenya’s economy is one of the largest in Africa and influences its neighboring countries to
a great extent. Its growth has been steady, with an average growth rate of 7‐9% and much
of the growth has resulted from the resilience of the private sector.
 The labor force participation rate is low with only 52.2% for male and 46% for female,
although it is improving slowly. The GDP growth rate has temporally declined up to 2008,
but has picked up ever since and risen up to 4.6% in 2012. International donor organizations
anticipate that Kenya’s economic growth rate will rise up to 5 to 6% range over the next
few years ahead.
 A close look at the changes in GNI per capita measured in PPP of current international
dollars between 2008 and 2013 reveals that despite rapid growth in population during this
period of time, the per capita GNI increased substantially from $1,940 in 2008 to $2,250 in
2013. By the same token the GDP growth rate also improved significantly in recent years
from only 2% in 2008 to 5% in 2013. In fact the country’s economic performance of 5%
growth rate for 2012 proved stronger than anticipated at 4.5% and that the forecasts for
2013 and 2014 are 5.7% and 6.0%, respectively, is also encouraging.

Source: World Bank (2015)


Figure 5: Kenya's GDP Growth Rates

Table 3: Major Economic Indicators of Kenya

Indicator Unit 2011 2012 2013 2014


Population (Million) 39.5 40.7 41.8 43.0

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Kenya Advanced Institute of Science and Technology Feasibility Study

GDP Per capita (Constant): (Ksh) 83297.9 84721.2 87105.4 89240.5


Growth of GDP at constant prices (Percent ) 6.1 4.6 5.7 5.3
GDP at market prices (Ksh Mn) 3,725,918.4 4,261,150.7 4,730,800.5 5,357,671.7
Total value of petroleum products (Ksh Mn) 337,749.2 326,921.6 315,374.2 333,145.8

Trade balance (Ksh Mn) -788,145.3 -856,740.0 -911,029.2 -1,081,085.3

Money Supply (M3) (Ksh Mn) 1,514,152.0 1,727,686.0 1,957,492.2 2,329,980.0

Total domestic credit (Ksh Mn) 1,532,051.0 1,767,756.8 2,007,162.8 2,137,173.0

Balance of payments (current (Ksh Mn) -340,178.7 -359,676.7 -411,741.2 -536,083.2


account balance)
Manufacturing output (Ksh Mn) 1,580,775.8 1,619,622.0 1,737,699.0 1,821,833.9

Construction output (Ksh Mn) 436,724.0 513,386.4 581,537.6 687,537.3

Petroleum consumption ('000 tons) 3,857.9 3,638.0 3,707.9 3,937.9


Electricity consumption (GWh) 6,273.6 6,414.4 6,928.1 7,768.6
Fresh horticultural produce ('000 tons) 216.2 205.7 213.8 220.2
exports
Tourism earnings (Ksh Mn) 97,890.0 96,020.0 93,970.0 87,080.0
Net lending/borrowing (% of
% -4.4 -4.5 -5.6 -6.3
GDP)
Net lending/borrowing (Ksh Mn) -179,714.1 -253,804.8 -316,992.8 -533,940.5
Recurrent Revenue and Grants (Ksh Mn) 736,106.5 812,480.5 991,870.6 1,176,224.8
Total Expenditure (Ksh Mn) 1,016,708.7 1,241,396.4 1,532,993.0 1,924,885.9
External Debt Service Charge ( %
of GDP) % 0.9 0.8 1.0 1.8
External Debt Service (% of
% 3.6 3.8 4.9 10.0
Exports)
Source: KNBS, Kenya Facts and Figures (2015)

 The World Bank indicates that much of the economic performance seems to be attributable
to the recovery of business confidence and industrialization efforts of the government. The
following figure compares the GDP growth rate of Kenya with those of other African
neighbors. While Uganda, Tanzania, and to a lesser extent, Ghana as well as Sub-Saharan
Africa (SSA) overall, did well between 1996 and 2010, Kenya did rather poorly primarily
because of the political instability arising from the presidential election. But as indicated in
the earlier discussion Kenya has done very well since the restoration of political stability.

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Kenya Advanced Institute of Science and Technology Feasibility Study

Source: USAID (2012)


Figure 6: Changes in Growth Rates (Kenya vs. Other African Countries)

 According to the AfDB report (2014), macroeconomic policies are judged to be prudent and
adequately support economic growth all along. However, inflation rose rapidly in the past
as high as 30% in early 2008 because of high costs of food and fuel. Political instability was
also responsible for the hyperinflation. Over the recent five years, however, the inflation
rate came down to a below 10% level. The rate of inflation seasonally fluctuates as shown
in the following figure. Now it stands at 7.03%.

9.00

8.00

7.00

6.00

5.00

4.00

3.00

2.00

1.00

0.00

Source: KNBS, Leading Economic Indicators (2015)


Figure 7: Kenya's Monthly Inflation Rates (2014~2015)

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Kenya Advanced Institute of Science and Technology Feasibility Study

Industrial Profile
 Kenya’s industrial structure is relatively less diversified, as it largely relies on agriculture
(25 ‐ 27% of GDP) with the manufacturing sector accounting only for 8.9 ‐ 9.5%.
 The machinery and transport equipment sector constitutes the largest share of imports,
accounting almost 30% of the total imports, while the share of oil imports is as high as 25%
of the total imports. The percentage share of the machinery and transport equipment in GDP
has gradually increased up to 12% in 2012 from10% in 2008, as the country became more
industrialized. The import share of oil to GDP has also been steadily increasing with 7% up
to 12.4% over the last few years.
 Interestingly, in the petroleum sector the import of crude petroleum has substantially
declined, while that of the petroleum products increased more than twice over the three-
year period between 2010 and 2013. This may well be due to the government effort for
industrialization.
 A similar pattern of imports is observed with iron and steel and industrial machinery, being
indicative of industrialization. Equally important is a significant increase in import of
chemical fertilizer, indicating that efforts are being made to increase productivity of farm
products. Other import items of notable significance are industrial suppliers, transport
equipment, and energy products. This suggests that the Kenyan economy must be upgraded
in a way that light industry be promoted to substitute imports for domestic consumption.
Under the current system, a large amount of valuable foreign currencies seem to be used to
purchase consumable goods like foods, beverages and fuels.

Table 4: Percentage Contribution of Industrial Activity to GDP in Kenya


(Unit: %)

Industry 2010 2011 2012 2013


Agriculture and forestry 21.2 23.8 24.6 25.3
Fishing 0.6 0.5 0.5 0.5
Mining and quarrying 0.7 0.7 0.7 0.6
Manufacturing 9.8 9.6 9.5 8.9
Electricity and water supply 2.0 1.0 1.4 1.4
Construction 4.2 4.1 4.2 4.4
Wholesale and retail trade, repairs 10.1 10.5 10.5 10.2
Hotels and restaurants 1.7 1.7 1.7 1.5
Transport and communication 10.0 10.0 9.6 9.1
Financial intermediation 5.6 6.3 5.2 4.8
Real estate, renting and business services 4.8 4.4 4.3 4.1
Public administration and defense 5.5 5.0 5.5 6.7
Education 6.2 5.8 6.1 6.7

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Kenya Advanced Institute of Science and Technology Feasibility Study

Health and social work 2.5 2.4 2.4 1.9


Other community, social and personal services 3.3 3.2 3.2 3.5

Private households with employed persons 0.4 0.4 0.4 0.4


Less: Financial services indirectly measured -0.8 -1.0 -0.8 -1.0
Taxes less subsidies on products 12.1 11.5 11.1 10.9
Source: KNBS, Kenya Facts and Figures (2014)

Table 5: Imports by Principal Commodity in Kenya


(Unit: USD)

Import 2010 2011 2012 2013


Crude Petroleum 72,598 124,042 68,086 41,037
Petroleum Products 122,004 206,672 237,557 252,673
Animal/vegetable fats and oils 38,956 59,133 54,876 48,371
Medicinal & Pharmaceuticals
Products 27,879 39,681 41,307 40,114
Chemical Fertilizers 14,186 23,045 20,184 27,957
Plastics in primary & non-primary
forms 35,995 49,296 47,650 55,182
Iron and Steel 43,558 62,087 56,667 80,749
Industrial Machinery 158,721 177,323 194,666 231,440
Road Motor Vehicles 55,812 62,870 73,768 83,330
All other Commodities 377,496 496,601 579,826 552,463
Total 947,206 1,300,749 1,374,587 1,413,316
Source: KNBS, Kenya Facts and Figures (2014)

 Some statistics drew attention to the tourism and services sectors. The service sector, which
includes, among others, banking and finance, tourism, transport and communication
accounted for over 50% of GDP, being a major economic driver. These sectors largely make
up the private sector, employing a large segment of urban population, including
professionals, technicians and skilled or semiskilled laborers.
 Kenya is a major producer of coffee, tea and horticultural products, which also happen to
be its major export items, as well as fish, cement, petroleum products and minerals. The
percentage share of coffee and tea in total exports has remained 0.7% and 3.0%,
respectively. However the share of horticulture has remained the same while that of the
manufactured goods has declined recently. Tea and coffee, together with fresh horticultural
produce, are three main crops produced largely for export purpose. The country also
produces wheat and rice, but they are not significant enough to influence the country’s GDP.

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Kenya Advanced Institute of Science and Technology Feasibility Study

Table 6: Key Crop Production in Kenya


(Unit: 1,000 tons & %)

Commodity (‘000 Tons) % Change % Change


2012 2013 2014
(2012~13) (2013~14)

Tea 369.4 432.4 445.1 17.1 2.9


Coffee 49.0 39.8 49.5 -18.8 24.4
Fresh horticultural produce 205.7 213.8 220.2 3.9 3.0
Source: Ministry of Devolution and Planning, Economic Survey Report (2015)

Employment Conditions
 Kenya does not seem to produce as many jobs as desired. Unemployment and
underemployment of the youth population are continuously exacerbated, likely to trigger
social unrest. Excluding the youth attending schools and other forms of training, about 10
million of them are estimated to be either unemployed or underemployed. Since the
employment conditions are hard to change overnight, long-term solutions will require a
significant amount of industrial restructuring. Some experts argue that the service sector
can generate as many jobs if it is stimulated, but service jobs depend largely on other sectors,
manufacturing in particular. Unless high value-added industries create jobs, the service
sector alone would not be able to thrive.
 The private sector businesses have thrived relatively well. With proper incentives, they will
be able to create a large number of jobs for the youth. According to the Country Strategy
Report of 2008-2012 by the African Development Bank, “the private sector’s ability to
identify and exploit new niches, such as horticulture and ICT, has been important for the
performance of the economy. More jobs may have to be created in these industries, implying
that an adequate training and education program must be established to help increase
employment opportunities for the underprivileged (AfDB 2014).
 The current wage employment by industry in the Kenyan economy as shown in the
following table reveals that the largest number of people are being employed in the
agriculture, education, and manufacturing sectors. Jobs in the civil service are as important
as in health and social works. The problem is that the employment markets in these sectors
may be pretty much saturated and new entry level jobs may be scarce, thus preventing the
youth from accessing them.

Table 7: Wage Employment by Industry (2010~2013)


(Unit: %)

Wage Employment by Industry 2010 2011 2012 2013


Agriculture, forestry and fishing 331.3 330.4 337.7 346.7

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Kenya Advanced Institute of Science and Technology Feasibility Study

Mining and quarrying 8.5 8.7 9.0 9.4


Manufacturing 261.7 270.2 271.0 280.3
Electricity, gas, steam and air conditioning
11.7 11.4 14.3 14.7
supply
Water supply; sewerage, waste management
7.6 7.6 8.5 9.5
and remediation activities
Construction 100.1 106.1 116.1 130.3
Wholesale and retail trade; repair of motor
181.5 190.4 198.0 212.4
vehicles and motorcycles
Transportation and storage 70.7 72.9 75.2 76.4
Accommodation and food service activities 63.1 65.6 68.9 73.7
Information and communication 77.9 80.5 85.7 92.7
Financial and insurance activities 54.1 58.1 61.6 67.0
Real estate activities 3.5 3.6 3.7 3.8
Professional, scientific and technical activities 60.1 61.3 62.7 65.4
Administrative and support service activities 4.0 4.2 4.5 4.8
Public administration and defense; compulsory
190.8 206.0 207.4 217.8
social security
Education 356.0 370.0 384.8 400.8
Human health and social work activities 94.6 97.9 104.7 112.8
Arts, entertainment and recreation 6.0 6.1 6.4 6.7
Other service activities 27.0 27.3 28.2 29.8
Activities of households as employers;
undifferentiated goods- and services-producing 105.0 104.8 106.3 109.7
activities of households for own use
Activities of extraterritorial organizations and
1.0 1.0 1.0 1.1
bodies
Source: KNBS, Kenya Facts and Figures (2014)

Educational System
Overview
 The education system offers eight years of compulsory primary education, four years of
secondary and four years of university (Library of Congress 2007). President Daniel Arap
Moi implemented this 8-4-4 system in 1985, but primary education became compulsory
only in 2003 under President Mwai Kibaki’s regime. Prior to 2003, primary education had
been free until the mid-1980s, when they were made fee-based due to spending cuts.
 Literacy rate in Kenya is currently estimated to range between 75% and 85%, with around
ten point lower for females than males.

Table 8: Selected Indicators on Education

Indicators 2012 2013 % Change

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Kenya Advanced Institute of Science and Technology Feasibility Study

No. of Primary Schools 29,161 30,122 3.3

No. of Secondary Schools 8,197 8,848 7.9

No. of Public Universities 8 22 175.0

No. of Private Universities 27 30 11.1

No. of TIVET Institutions 701 748 6.7

Total Enrolment in Primary Schools 10,000,000 10.2 2.0

Total Enrolment in Secondary Schools 1,910,000 2.10 10.5

No. of Public Primary School Teachers 191,034 199,686 4.9

No. of Public Secondary School Teachers 64,338 65,494 1.8

University Enrolment 240,551 324,560 34.9


Source: Ministry of Devolution and Planning, Economic Survey Report (2014)

 The expenditure on education takes up a significant share of the Kenyan government’s


spending. In fact, the education sector has always received large government investment in
Kenya as in the following figures. In the fiscal year of 2007/08, the education sector
accounted for almost 30% of total government expenditure and 6.2 percent of the country’s
GDP. According to the Ministry of Finance, government expenditure on education has
increased from about US$7.6 million (Ksh 81 billion) in 2004/05 to US$10.1 million (Ksh
106 billion) in 2008/09 (Otieno 2002/2009).

Source: KNBS, Kenya Facts and Figures (2014)


Figure 8: Ministry of Education Budget as % of Total
Government Budget

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Kenya Advanced Institute of Science and Technology Feasibility Study

Primary & Secondary Education


 The introduction of free universal primary education in 2003 led to a sharp increase in
school attendance. About 8.2 million children attended primary school in 2007 compared
to 5.9 million in 2000. The rate of transition from primary to secondary level rose from 41.7
percent in 2002 to 60 percent in 2005 (AfDB 2008). A closer look at enrolment statistics
shows that primary enrolment increased from 97.7% in 2000 to 111.3% in 2004, and
secondary enrolment from 39.2% to 48.0% during the same period; transition from primary
to secondary school increased from 30% to 54% between 2004 and 2005.
 At the end of the 8 years of primary education, students take the Kenya Certificate of
Primary Education (KCPE) examination, and the Kenya Certificate of Secondary Education
(KCSE) examination at the end of their secondary education. Students with an average of
C+ and higher qualify to enroll in university, but universities are unable to accommodate
all applicants due to low capacity. Tertiary enrolment remained very low, at 3% in 2004
(Farrel 2007).

Higher Education
 Tertiary and higher education covers university education, as well as post-secondary
education and training provided by national polytechnics, tertiary colleges (teacher training
colleges and medical training colleges), and other tertiary-level TIVET institutions
(technical training institutes, institutes of technology, and technical and professional
colleges). At public universities, Bachelor’s degree programs normally last four years (five
years in the case of civil engineering, medicine and surgery), and Master’s degree programs
take a minimum of two years to complete. Programs leading to a postgraduate diploma have
one to two years’ duration, and Doctoral degree programs normally last three years. The
school year consists of thirty-nine weeks, divided into three terms of thirteen weeks each
(UNESCO 2010).
 Higher education in Kenya has undergone significant transformation in the recent years. A
key development among them is the enactment of the Universities Act No. 42 of 2012. This
brought the establishment, governance and administration of universities under one legal
framework, causing the repealing of Acts that enabled seven universities to operate under
individual Acts. The new law also caused some public university constituent colleges
operating under Legal Orders to be upgraded to full-fledged public universities (CUE
2015b). A full list of universities currently authorized by the government to operate in
Kenya is provided in the following figure.
 Particularly noted is the fact that the number of public universities increased within a year
from 8 to 22 between 2012 and 2013, resulting in an increase of 34.9% in university
enrollment. The government authorities seem to recognize the importance of higher
education for the country’s fast track modernization and industrialization. Also noteworthy
is that the number of registered medical personnel increased by 7.3% over one year period
between 2012 and 2013. Medical students increased by 18.1% during the same period.

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Kenya Advanced Institute of Science and Technology Feasibility Study

Public Universities: Prior to 13th December 2012, public universities were established through individual Acts of
Parliament. Following enactment of universities Act No. 42 of 2012, the public universities have since been established
through the award of charter. All individual Acts were repealed and the previous public universities re-accredited through
charter award after institutional quality audits.
 University of Nairobi (1970)  Pwani University (2013)
 Moi University (1984)  Kisii University (2013)
 Kenyatta University (1987)  University of Eldoret (2013)
 Edgerton University (1987)  Maasai Mara University (2013)
 Jomo Kenyatta University of Agriculture and  Jaramogi Odinga University of Science & Technology (2013)
Technology (1994)  Laikipia University (2013)
 Maseno University (2001)  South Eastern Kenya University (2013)
 Masinde Muliro University of Science and  Meru University of Science & Technology (2013)
Technology (2007)  Multimedia University of Kenya (2013)
 Dedan Kimathi University of Technology (2012)  University of Kabianga (2013)
 Chuka University (2013)  Karatina University (2013)
 Technical University of Kenya (2013)
 Technical University of Mombasa (2013)
Public University Constituent Colleges: These are universities established by a Legal Order upon satisfying set minimum
standards by the Commission for University Education.
 Muranga University College (2011) - JKUAT  Kirinyaga University College (2011)- JKUAT
 Machakos University College (2011) - KU  Rongo University College (2011) - MU
 The Co-operative University College of Kenya  Kibabii Universtity College (2011) - MMUST
(2011) - JKUAT  Garissa University College (2011) – MU
 Embu University College (2011) - UoN
Chartered Private Universities: These are universities that have met the set standards for full university accreditation
status.
 University of Eastern Africa, Baraton (1991)  Strathmore University (2008)
 Catholic University of Eastern Africa (1992)  Kabarak University (2008)
 Daystar University (1994)  Mount Kenya University (2011)
 Scott Christian University (1997)  Africa International University (2011)
 United States International University (1999)  Kenya Highlands Evangelical University (2011)
 Africa Nazarene University (2002)  Great Lakes University of Kisumu (2012)
 Kenya Methodist University (2006)  KCA University (2013)
 St. Paul’s University (2007)  Adventist University of Africa (2013)
 Pan Africa Christian University (2008)
Private University Constituent Colleges:
 Hekima University College (1993) – CUEA
 Tangaza University College (1997) – CUEA
 Marist International University College (2002) – CUEA
 Regina Pacis University College (2010) – CUEA
 Uzima University College (2012) – CUEA
Private Universities with Letter of Interim Authority (LIA):
The universities operating with Letters of Interim Authority (LIA) from CUE receive guidance and direction to continue
developing resources and facilities towards full university accreditation (Award of Charter)/status. They are allowed to
admit students for the approved programmes
 Kiriri Women°Ø s University of Science and  GENCO University (2010)
Technology (2002)  Management University of Africa (2011)
 Aga Khan University (2002)  Riara University (2012)
 GRETSA University (2006)  Pioneer International University (2012)
 UMMA University (2013)  Umma University (2013)
 Presbyterian University of East Africa (2008)  International Leadership University (2014)
 Inoorero University (2009)  Zetech University (2014)
 The East African University (2010)
Registered Private Universities: These came into existence before the establishment of the Commission for Higher
Education in 1985, which has since transformed to Commission for University Education (CUE 2012). They are at various
stages of development of resources and facilities for full university accreditation (Award of charter).
 Nairobi International School of Theology
 East Africa School of Theology
Source: CUE, Universities Authorized to Operate in Kenya (2015a)
Figure 9: List of Universities Authorized to Operate in Kenya

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Kenya Advanced Institute of Science and Technology Feasibility Study

 As for the gender ratio of university enrollment, the share of female students has been rising
in recent years, although at a slow rate. Across the five major universities in Kenya, the
proportion of female students ranges from 30% (Jomo Kenyatta University in 2011/12) to
55% (Kenyatta University in 2012/13).

Table 9: Student Enrollment by Sex in Top-5 Kenyan Universities

(Unit: # of students enrolled)

2011/12 2012/13
Institution
Total Male Female Total Male Female
UoN 44,303 61.1% 38.9% 50,895 60.3% 39.7%
Kenyatta 37,220 57.3% 42.7% 57,192 44.8% 55.2%
Moi 25,533 55.3% 44.7% 31,645 54.9% 45.1%
Egerton 12,145 58.0% 42.0% 7,678 59.6% 40.4%
JKUAT 13,937 70.4% 29.6% 28,918 65.9% 34.1%
2013/14 2014/15
Institution
Total Male Female Total Male Female
UoN 64,069 60.4% 39.6% 69,946 60.5% 39.5%
Kenyatta 70,006 53.9% 46.1% 76,879 56.1% 43.9%
Moi 34,231 54.2% 45.8% 43,296 51.9% 48.1%
Egerton 11,940 59.0% 41.0% 13,928 62.2% 37.8%
JKUAT 30,576 64.5% 35.5% 32,329 64.5% 35.5%
Source: Ministry of Devolution and Planning, Economic Survey Report (2015); Originally from Kenya
Education Network

 In addition to means-tested loans, needy students also receive means-tested financial aid.
The maximum amount that an individual student can receive in grants a year is US$107
(Ksh 8,000). In 1974, the government introduced the University Students Loan Scheme
(USLS), overseen by the Ministry of Education. However, the scheme lacked the legal basis
to recover matured loans, and because students perceived the loans as a grant that did not
have to be repaid, the scheme was running on deficit.
 To address the student loan problem, the parliament passed the Higher Educations Loans
Board Act, which set up a board that was empowered to recover all outstanding loans, and
established a revolving fund to support needy students. A maximum of US$2,0322 (Ksh
60,000) is loaned a year per student with a 4% interest that compounded starting from loan
origination, and a one-year grace period from the completion of degree program is provided.
In 2006/07, 28,900 were awarded loans, and 26,720 graduates have fully repaid their loans.
Another 57,000 have not yet begun servicing their loans (World Bank 2010, Nyaigotti-
Chacha 2004).

Challenges and Responses

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Kenya Advanced Institute of Science and Technology Feasibility Study

 Several challenges face the higher education system in Kenya, ranging from poor
compensation for higher education staff to weak support for post-graduate employment
preparation
Research and Publications: Research is one of the core pillars of the university system.
Publication of research findings in reputable journals is one of the ways in which these
findings are widely disseminated to stakeholders. Studies show that research and
publishing by faculty has sharply dropped over the last few years. Due to heavy
teaching responsibilities – brought about by the rising student numbers, plus the need
to moonlight so as to make some extra money to supplement the meager pay – faculty
is not keen on undertaking meaningful research and publishing their work.
Staff Remuneration: Universities, especially public ones, have almost exclusively
depended on the government for remunerating their staff. This has led to a situation
where staff is not paid as well as their counterparts in the more developed societies.
Many professors have therefore decamped to other countries in search of better pay,
affecting the teaching needs of Kenyan universities. Demand for better pay has often
led to standoffs between the government and the University Academic Staff Union
(UASU).
ICT Capacity and Utilization: Most universities in Kenya have very limited access to
modern computing and communications technology, so it is increasingly difficult for
teachers and students to keep abreast of current developments in their academic areas.
Post-graduate Employment: Students fortunate enough to get a university degree have
no guarantee of finding employment. Whereas university graduates were able to step
into managerial-level civil service posts in the 1970s, today's job prospects are less
obvious, due to tough structural adjustment programs and recruitment restrictions.
 Recognizing that research and publications are a vital aspect of university performance, the
government felt the need to promote university research activities and their planning.
Following the Universities Act of 2012, the Planning, Research and Development (PRD)
Division was established in 2013 under the Commission for University Education (CUE).
It was felt that the mandate of the Commission had a large planning and research
component, yet these functions tended to be overshadowed by the finance and
administration function. The PRD operates in two departments: the Planning and Resource
Mobilization (PRM) Department and the R&D Department (CUE 2015b).
 The Planning and Resource Mobilization Department performs such functions as data
collection, analysis and documentation, and coordination of long term planning and
development of university education in Kenya, and undertakes studies on the impact of
social-economic changes in the country on university education. This department also is in
charge of the education management and research information management systems
(RIMS) for university education and research and coordination of University admissions.
 The R&D Department is tasked with the following functions: conducting research on
critical issues in university education; preparing research funding proposals in support of
university education, and conducting relevant manpower surveys and studies. The R&D
Department also publishes and disseminates research findings on university education and

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research, alongside leading the formulation, implementation and review of university


research policies and strategies. Most importantly, it assesses and aligns university research
with the national development agenda including Vision 2030.

Science and Technology System


Major S&T Institutions and Actors
 The new Science and Technology Bill of 2012 was enacted to facilitate universities and
research institutions to actively engage in commercialization of their research outputs and
freely alienate their intellectual property rights with interested parties in the private sector.
With this law intact the government expects that more of the research universities will
participate not only in STI education and training, the postgraduate education in particular
leading to PhD and MS, but in commercially motivated R/D activities. This may explain
the reason why there has been a continuous increase in university enrollment in science,
technology, and engineering, particularly among the public universities.
 As shown in the following figure, the Kenya National Innovation System (KNIS) integrates
three subsystems of government, education and research, and business. The demand for the
Science, Technology and Innovation (ST&I) derives from both consumers and producers.
The former includes large and small‐medium enterprises as well as the start-up businesses
whereas the latter involves educational and R&D institutions such as universities, research
institutes and education network.
 These two parties are intermediated by various intermediate organizations and
professionals. A number of government bodies are also involved in governing and
coordinating the system, including relevant ministries, commissions, funding agencies etc.
A large number of financial institutions, both private and public, are also participating in
the system operation for funding and financial management. What is required for the system
to properly work is inter‐governmental coordination and cooperation. The National
Commission for Science, Technology and Innovation (NACOSTI) is tasked to coordinate
various S&T functions and activities. Its roles are yet to be further articulated as the whole
NIS will not work without its leadership in the first place.

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Source: Nyawira (2013)


Figure 10: Kenya National Innovation System

 The following figure depicts how the S&T management system operates from the
standpoint of the government. Most of the government ministries are involved in the
management either directly or indirectly with the Ministry of Education, Science, and
Technology (MOEST) in the middle, including the ministries of agriculture, economic
planning, information, health, natural resources social services, and others. These line
ministries form NACOSTI for an effective inter‐ministry cooperation and coordination. The
president chairs the commission. MOEST supervises and coordinates not only science and
technological education and R&D activities but manpower training as well.

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Source: NACOSTI (2012)


Figure 11: Management of S&T in Kenya

 NACOSTI manages and allocates the government’s national research (NRF for STI) funds.
They are largely distributed to the following 7 different programs; i) 78 innovation projects,
ii) multidisciplinary and multi‐institutional research projects, iii) increase in women
scientists, iv) Ph.D and masters grants, v) post-doctorate grants, vi) incentives for
publications, vii) scientific conferences and collaborative calls. Upon creation, the National
Research Foundation (NRF) will support ST&I schemes. GoK intends to increase the share
of the NRF budget up to 2% per year, closer to those of the advanced economies.
 The NACOSTI Annual Report of 2012 acknowledged that “the advanced science and
technology areas are still at the infancy despite the country’s strengths in physical,
biological, health, computer and information technology” (NACOSTI 2012). In other
words, it claims is that scientific bases might exist in Kenya but they were not fully explored
and utilized to the extent that they could help the country transform into a ST&I based
economy.
 Some analysts are questioning the existence of such bases as claimed by the Council,
indicating that Kenyan higher educational institutions are neither adequately prepared, nor
equipped to promote and advance sciences, technologies and engineering because high
quality faculties are lacking, along with R&D facilities, modernized laboratories, equipment
and academia‐industry collaboration.

 The Council strongly urges research universities to engage in ‘industrially relevant


technologies,’ stressing that efforts have not been made to link universities to industrial
innovation.’ Now the question is: are the higher educational institutions in Kenya ready to

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accept the Council’s recommendations? The answer is rather dubious. Currently there are
19 national (public) universities and 22 private universities. At present approximately
120,000 students are enrolled in these higher educational institutions. Private universities
were mostly founded by religious organizations, thus placing greater focus on humanities,
social sciences and theology.
 On the other hand, the national universities tend to emphasize on science, technology, and
engineering (STE). The Commission for University Education (CUE) recently recognized
the importance of STE education and research and development (R&D) to support the
government’s effort for fast track modernization and recommended greater investment in
the field of science, technology, engineering and management (STEM).
 However, the higher education is still suffering, and even the most prestigious university
like the University of Nairobi is facing challenges in securing high‐tech facilities and high
quality faculties. The Kenya Education Network (KENET) facilitates the sharing of
educational and research resources through broadband infrastructure and services. KENET
needs to be strengthened in the near future to help share the research resources across the
education and research system throughout the country.

R&D Performance
 Kenya could hardly catch up with the fast developing economies in its spending on R&D
and related activities, not to mention, with advanced economies. Its gross R&D
development expenditure is recorded only at 0.42% of the GDP, which is extremely low in
both relative and absolute terms as compared with those of advanced countries as shown in
the following figure.
 Most advanced countries have maintained the ratio of R&D expenditure to GDP at 1.6%
and some of them, up to 3% level. As shown in this figure, these countries have gradually
increased its share from 1‐2% level in the past to 2‐3% level presently because they realize
that R&D investments are in fact most insured outlays for the country’s future, generating
high paying jobs and income although R&D is an inherently risky endeavor.
 The African Development Bank report indicates that Kenya is ranked 69 of 139 in
mathematics and science and 70 of 139 in teaching staff as evaluated in 2010‐ 2011 (AfDB
2014). Besides the Kenya’s Engineers Registration Board (ERB), now elevated to
Engineers Board of Kenya, noted that infrastructure for teaching, learning, and research
does not measure up to the required standards. Seriously worrisome is the fact that less than
20% of African students are known to be enrolled in science, engineering and technology
curricula, compared with over 50% in Asia’s fast growing counterparts.

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Figure 12: Kenya's Gross R&D Expenditure (% GDP) in Comparative Perspective

Table 10: Scientific Publications of Top 20 African Countries (1996~2014)

Citations
Citable Self- per
Rank Country Documents documents Citations Citations Document H index
1 South Africa 167440 154857 1774278 386014 13.41 292
2 Nigeria 53298 51223 272400 61408 7.48 115
3 Tunisia 51590 49230 276247 60183 7.99 109
4 Algeria 36490 35871 174096 34065 7.66 97
5 Morocco 35962 34027 235287 43346 8.52 117
6 Kenya 21811 20150 315176 49200 18.18 165
7 Ethiopia 11381 10866 95145 19804 12.49 88
8 Tanzania 10516 9866 140878 21812 17.24 113
9 Uganda 10092 9317 138405 22467 19.46 118
10 Cameroon 9874 9397 90309 17812 12.3 85
11 Ghana 9721 9073 86854 10608 12.74 92
12 Zimbabwe 6522 6147 80239 8237 13.35 90
13 Senegal 6424 6038 64136 8101 12.46 89
14 Sudan 5379 5168 40208 5069 11.07 65
15 Botswana 4511 4167 42698 4449 11.15 71
16 Côte d'Ivoire 4403 4228 45006 4816 12.29 82
17 Malawi 4385 4030 64154 8502 19.11 97
18 Burkina Faso 4256 4086 47871 7253 14.26 77
19 Libya 3730 3611 15111 918 6.13 45
20 Zambia 3495 3220 46959 5211 16.37 83

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Source: SCImago Journal & Country Rank

Table 11: Scientific Publications of Kenya in Global Comparison (1996~2014)

Citations
Citable Self- per
Rank Country Documents documents Citations Citations Document H index
60 Cuba 29514 28387 173646 35090 6.76 115
61 Belarus 28941 28543 175290 32229 6.17 122
62 Bangladesh 26924 25901 184202 35455 10.09 124
63 UAE 26690 25166 166455 17582 9.13 112
64 Jordan 25514 24845 167105 21438 8.74 102
65 Estonia 25458 24479 313735 55005 15.83 162
66 Viet Nam 24473 23559 204089 29994 13.84 133
67 Kenya 21811 20150 315176 49200 18.18 165
68 Lebanon 18218 16817 151940 15122 11.56 122
69 Philippines 17783 16507 219804 22832 16.41 147
70 Kuwait 16848 16230 134541 16324 9.2 100
71 Cyprus 14766 13689 137506 16629 15.03 113
72 Latvia 14403 14024 99502 14907 9.48 104
73 Iceland 13937 12907 296796 27823 27.54 198
Puerto
74 Rico 13060 12606 213031 14404 18.12 156
75 Peru 12367 11418 155938 16849 17.88 140
Source: SCImago Journal & Country Rank

 Publications and patents are two most standard indicators of R&D output. Kenya’s
performance in scientific publications was largely stagnant during the early half of 2000s,
roughly at the range of 230 articles per year. It then improved visibly in the latter half of
2000s, reaching almost 290 articles per year.
 Patent records also show a similar increase in the second half of the 2000s as revealed in
Figure 5.9. It is notable that the increase in patent applications came initially from non-
residents around 2007, and then applications by non-residents started to follow up in the
early 2010s.

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290.5 289.5
285.4
275.8
262.2

241.6 239.4
236.5
231.7 228.5
224.7 225.8

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: World Bank, World Development Indicators 2014, Reprocessed by the F/S Team
Figure 13: Kenya’s Scientific Publications (2000~2011)

Patent applications, nonresidents Patent applications, residents

160

140

120

100

80

60

40

20

0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: World Bank, World Development Indicators 2014, Reprocessed by the F/S Team
Figure 14: Patent Applications in Kenya (2002~2012)

 Kenya ranks comparatively high in agriculture and biological science, as shown in the
following table. Other fields of science it shows strength in are: archeology, pharmacology,
earth sciences, among others.

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Table 12: Kenya's Ranking of Scientific Publications in Various Fields of Science

Kenya’s
Fields #Countries
Rank
Zoological Science 220 44
Archaeology 166 55
Plant Sciences 209 59
Biology/Life Sciences 224 63
Management Science and Engineering 200 67
Pharmacology 200 67
Environmental Engineering 184 71
Earth Sciences 223 72
Geological Sciences 200 79
Biological Engineering 164 80
Sport Science 159 81
Architecture 131 82
Information Sciences 136 83
Biomedical Engineering 162 84
Statistics 145 85
Architectural Engineering 175 85
Civil Engineering 187 85
Aeronautical and Aerospace Engineering 173 87
Nuclear Science and Engineering 152 91
Chemistry 203 91
Industrial Engineering 181 93
Manufacturing Engineering 181 93
Chemical Engineering 195 94
Mechanical Engineering 192 98
Electrical Engineering 180 99
Mathematics 204 99
Computer Engineering 212 100
Materials Engineering 203 101
Physics 207 105
Astronomy 161 112
Source: SCImago Journal & Country Rank

 There are a few indexes measuring relative competitiveness of Kenya in R&D, scientific
knowledge, business, technological competence, productivity, innovation, governance and
economic versatility. Kenya ranks low on most of these indexes, and particularly on
technological competence, scientific knowledge, productivity and innovation. Kenya needs
a lot more effort to become a competitive and scientifically innovative country.

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 For example, the Technology Achievement Index (TAI) measures a country’s level of
technological progress, its capacity to participate in the networked economy and how well
a country is creating and using technology. According to the 2002 TAI results, Kenya
ranked 68 with TAI score of 0.129, suggesting that Kenya could be considered as a
‘marginalized country’ with regard to the use of technology and innovative
competitiveness. It is recommended that Kenya ought to look at countries like China,
Thailand, Malaysia, and South Africa that have placed technology and innovation
consistently on the top policy priority list.
 The ArCo Technology Index measures technological capability of a country and ranks it
accordingly. The index is built on three main dimensions – creation of technology, diffusion
of technology, and development of human skills. Kenya ranked 116th in 2004. The country
did poorly in all these dimensions. Most important of the three would be creation of
technology because unless new technology would be created, the other two dimensions
would not mean much anyway.
 In this respect the RAND Corporation’s composite scientific index may be particularly
relevant as it measures a country’s capacity to carry out scientific research and foster
technological progress. It also offers a set of policy measures that might strengthen specific
national systems in innovation. The composite index placed Kenya in the category of
“scientifically lagging countries.”
 As much important is the management of R/D activities and technologies so produced as
scientific research and innovative technology per se. In this respect the ISO Certification
would be important in judging the way scientific and innovative efforts are being organized
and draw upon concrete results. The certification is used to ascertain the efficiency of
management system in an organization. Kenya registered only 8 certifications in 2001 and
158 in 2004, significantly below South Africa, one of the regional competitors, that
registered 87 and 2486, respectively.
 Global Competitiveness Index (GCI( is one of the most widely used index in measuring a
country’s competitiveness, which measures the level of productivity and groups countries
into three specific stages or orientations: factor driven, efficiency‐driven and innovation‐
driven. Each of the stage implies a growing degree of complexity in the operation of the
economy. According to the 2012‐2013 GCI, Kenya ranked 94th out of 125 countries
compared according to an analysis of the data collected in 2005. It defined Kenya as a
factor‐driven and early stage developing economy. Even now the ranking has improved
little as the country received GCI index of 106 out of 144.


 Another measure of innovation published by the European Institute for Business


Administration (INSEAD), the World Intellectual Property Organization (WIPO), and
Johns Hopkins University, Global Innovation Index (GII), ranks Kenya on 35th with the
score of 31.9 out of the 0~100 scale constructed out of 79 indicators capturing institutional
maturity, human capital, infrastructure, market sophistication, business sophistication,
knowledge and technology outputs, and creative outputs.

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Table 13: Kenya's Rank in Global Innovation Index

Rank Country Score


1 Switzerland 64.8
2 United Kingdom 62.4
3 Sweden 62.3
4 Finland 60.7
5 Netherlands 60.6
6 United States of America 60.1
7 Singapore 59.2
8 Denmark 57.5
9 Luxembourg 56.9
10 Hong Kong (China) 56.8
… … …
80 Guyana 32.5
81 Bosnia and Herzegovina 32.4
82 Jamaica 32.4
83 Dominican Republic 32.3
84 Morocco 32.2
85 Kenya 31.9
86 Bhutan 31.8
87 Indonesia 31.8
88 Brunei Darussalam 31.7
89 Paraguay 31.6
90 Trinidad and Tobago 31.6
Source: Global Innovation Index (2014)

 Despite the country’s poor performances in science, technology and innovation as


evidenced by various indicators reviewed, Kenya has a good potential for fast improvement
in ST&I in the long run although it invested only 0.42% of GDP in R&D in 2007. It was as
low as 039% of Uganda and 0.43% of Tanzania. Low level of R&D investments
notwithstanding, Kenya witnessed two promising signs in recent years. One is a steady
increase in patent applications. With an exception of South Africa Kenya has virtually led
Africa in terms of patent applications. They increased from 152 in 2008 to 197 in 2010, far
exceeding most of the Eastern African countries. And two is continuous increase in articles
and papers produced by Kenyans for international journals on science and technology. The
number of articles alone jumped from 226 in 2005 to 291 in 2000, making Kenya an East
African leader in science and technology.

Government Plans for S&T Development


 At least four ministries are directly involved in governmental planning for the advancement
of S&T: Ministry of Information Communications, and Technology, Ministry of
Industrialization and Enterprise Development, Ministry of Energy, and Ministry of

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Environment, Water, and Natural Resources. The following analysis draws upon the
strategic planning documents of these ministries.
 Ministry of Information, Communications and Technology (MIC) (source: Ministerial
Strategic Plan 2013‐2017)
GoK the importance of ICT as a foundation for economic development. According to
the MIC Strategic Plan, there are two major approaches – collaborations with
Strathmore University and the development of Konza Techno City.
The Kenya ICT Board made a partnership with Strathmore University and other local
universities aiming at promoting new business concerns in 47 counties. The role of
universities in this partnership is to conduct county-commissioned research, data
analysis, and the best business opportunities and potential investors in each county. The
digital villages will be set up in order to provide over 30,000 opportunities for Business
Process Outsourcing (BPO) by 2017 and develop e‐commerce to enable entrepreneurs
in obtaining skills to sell their products and services over the Internet.

Upgrading ICT capacity will be achieved through the following approaches; (i)
Establishment of the County ICT Incubation Hubs for youths training and work
experience to develop market‐ready ICT services and products, (ii) Development of a
National Addressing System Project in order to identify and allocate streets, buildings,
plots, and other infrastructure, (iii) Development of ICT human resource in the
government to enhance ICT knowledge and skills needed for better performance of
organizations within the public sector.
Konza Techno City (source: http://www.konzacity.go.ke/): The Konza Techno City
(KTC) is initially conceived as a BPO project promoted through the Kenya ICT Board.
KTC is set to host numerous BPO ventures, a science park, a convention centre,
shopping malls, hotels, international schools, and health facilities. KTC aims to be a
global technology hub, focused on four economic sectors that will advance technology
spending and technology growth in Kenya. More details on KTC are provided in
Chapter 3.
 Ministry of Industrialization and Enterprise Development (MIED) (source: Ministerial
Strategic Plan 2013‐2017)
The role of the manufacturing sector in Vision 2030 is to create employment and
wealth. The sector’s overall goal set by the first MTP is to increase its contribution to
the GDP by at least 10% per annum as envisaged in the Vision 2030. A number of
interventions are proposed in the Vision which will lead Kenya to become prosperous
and globally competitive.
The objectives to be pursued are: (i) to strengthen the capacity and local content of
domestically manufactured goods, (ii) to increase the generation and utilization of
R&D results, (iii) to raise the share of products in the regional market from 7% to 15%,
and (iv) to develop niche products for existing and new markets.

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In order to achieve these objectives, a set of key target areas have been identified and
specific goals and targets set to steer industrial growth. These include: (i) development
of the iron and steel industry through establishment of an Integrated Steel Mill, (ii)
Development of Small and Medium Enterprise (SME) Parks, Industrial and
Technology Parks, and Industrial Manufacturing Clusters, (iii) Upgrading of products
from SMEs, (iv) Skills development for the technical human resource for the
manufacturing sector, and (v) Commercialization of R&D results and attraction of
investors in strategic sectors (i.e. iron and steel industries, agro‐processing, machine
tools and machinery, motor vehicle assembly, and manufacture of spare parts).
MIED puts special emphasis on the development of the iron and steel industry. Major
Vision 2030 projects include the Lamu port development, railway and roads projects,
housing, industrial parks, and the development of the special economic zones. All of
the aforementioned projects utilize steel products. The iron and steel industry in Kenya
forms about 13% of the manufacturing sector, which in turn contributes significantly
to the GDP.
 Ministry of Energy (MOE) (source: http://www.energy.go.ke/downloads/National
Energy)
Energy sources: In Kenya, petroleum and electricity are the main energy sources of the
economy, while biomass is mainly used in rural communities and a few parts in the
urban population. Currently, Kenya imports all of its petroleum and most of its energy
production relies on petroleum. However, with the discovery of oil in Northern Kenya
this trend is subject to change. Electricity is generated predominately by hydro,
supplemented by geothermal and thermal sources. Apart from wood fuel which is over
used, other renewable energy resources, though abundant, have not been fully
exploited.
Fossil Fuels: In March 2012, oil was discovered in Northern Kenya, leading to a
growing interest in the energy sector. There is a need to develop adequate petroleum
production capacity in the country, as well as to develop a petroleum supply
infrastructure to meet the increasing local and regional demand for petroleum products.
These developments will include the establishment of a new refinery at Lamu given its
strategic location. Coal is an affordable, competitive, reliable, and easily accessible
source of energy, especially for the electricity generation. Extensive coal exploration
has taken place in the Mui Basin of the Kitui County of which Block C has been
appraised to contain 400 million tons. More coal exploration is going on in other parts
of the country. These resources are expected to provide about 1,900MW of electricity
generation by 2016 and 4,500MW by 2030.
Petroleum Refining: Kenya Petroleum Refineries Ltd. has been refining 1.6 million
metric tons per annum. The refinery produces various grades of refined oil, such as
premium motor spirit, regular motor spirit, automotive gas oil, dual purpose kerosene,
liquefied petroleum gas (LPG), fuel oil, grease, and bitumen. In July 2009, government
tried to modernize the refinery and made an agreement with Essar Energy Overseas
Limited. The modernization was intended to produce competitive refined petroleum
products and increase employment. With the discovery of oil in the region, the refinery

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would become a strategic asset for the processing of such oil. The government plans to
build another petroleum refinery at Lamu under the Lamu Port and Lamu‐South Sudan
Ethiopia Transport Corridor (LAPSSET) Project.
Renewable Energy: Renewable energy obtained from natural resources including
geothermal, hydro, solar, wind and ocean energy, biomass, biofuels, biogas and
municipal waste. In addition, renewable energy has the potential to enhance energy
security, diminish climate change, generate income, create employment and generate
foreign exchange savings. To enhance the exploitation of the vast geothermal
resources, the Kenyan government seeks to continue funding the Geothermal
Development Company and relieve the geothermal exploration risk.
 Ministry of Environment, Water and Natural Resources (source:
http://www.environment.go.ke/)

Water is a critical resource for sustaining life, as well as economic and social activities.
Water is becoming a product whose sale provides income generating activities and
employment opportunities. Access to water and its use is also essential not only for
sanitation purposes but also for helping to reduce occurrences of water borne diseases
and to improve public health.
Water also provides the infrastructure for the Agriculture, Manufacturing, Tourism,
Health, Livestock, Fisheries and Housing sectors. In this regard, proper management
of water plays a vital role in the realization of Vision 2030.
Kenya is classified as a water scarce country. Therefore providing sufficient water for
the competing uses in a growing economy will be a big challenge for the Ministry of
environment. Despite the importance of the ministry of environment, the Ministry is
understaffed, with 53% of the authorized positions being vacant.

Kenya Vision 2030


Background
 Announced in 2008 by President Kibaki, Vision 2030 is Kenya’s main development
blueprint. Kenya had achieved an annual GDP growth rate of 6.1% in 2006 (compared to
0.6% in 2002), and the government felt the need to maximize on this momentum. With this
concern as a backdrop, President Kibaki launched the process of development of the Vision
in October 2006, and in anticipation of the expiration of the Economic Recovery Strategy
for Wealth and Employment Creation (ERS) in December 2007 (Ministry of Planning and
National Development 2003).
 According to the Kenyan government, a participatory method was employed to assess and
survey the impending problems in Kenya, by involving as many ordinary Kenyans and
stakeholders as possible. Workshops were held in both urban and rural areas to invite
discussion between public officials, the private sector, civil society, the media, and NGOs.

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 The Vision aims at global competitiveness, prosperous nation, and high quality of life. It is
geared toward an average growth rate of 10% per annum over the next 25 years. In parallel
to the long term strategy the government developed a five‐year medium term plan (MTP).
MTP puts strong emphasis on economic infrastructure as a means to transform Kenya into
a globally competitive economy. In education it stresses on the quality education at the post
graduate level and applied science and technologies, ST&I in particular.

Vision and Blueprints


 The overarching ‘vision’ of the plan is to “transform Kenya into a newly industrializing,
middle-income country providing a high quality life to all its citizens by the year 2030,”
and is implemented based on three fundamental pillars—economic, social, and political.

Figure 15: Kenya Vision 2030 Architecture

 The economic pillar comprises tourism, agriculture, manufacturing, wholesale and retail,
business processing outsourcing (BPO) and financial services. The social pillar represents
such a major social issue as education, health, water and sanitation, environment, housing
and urban services, and gender, youth and vulnerable groups. And the political pillar focuses
on rule of law, electoral and political process, democracy and public services delivery,
transparency and accountability, public administration, security, peace building and conflict
management.
 The political pillar is regarded as a precondition for the social and economic pillars. Unless
the issues under the political pillar are resolved to a certain extent, the remaining issues
would not be taken care of. In short, political pillar serves as a precondition that has to be
satisfied to fulfill both social and economic pillars. The coalition government perfectly
understands it and work together in bipartisan efforts to maintain political and social
stability.
 These three pillars are “anchored” on 10 foundational themes: macroeconomic stability for
long-term development, continuity in governance reform, enhanced equity and wealth
creation opportunities for the poor, infrastructure, energy, STI, land reform, human
resources development, security, and public service. These foundational themes are subject
to change depending on the detailed medium-term plans, but based on these 10 themes,

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specific sectors are identified as key growth drivers for each of the three pillars, which then
provide the frame for launching and overseeing flagship projects.
 Vision 2030 explicitly stipulates that the modernization strategy should specifically initiate
reforms and development of eight key sectors: 1) macroeconomic stability, 2) continuous
governance reforms, 3) enhanced equity and wealth creation opportunities for the poor, 4)
infrastructure and energy, 5) science, technology, innovation (ST&I), 6) land reform, 7)
human resources development (HRD) and 8) security. And most critical among them are
ST&I and HRD.
 The Kenya government is clearly aware that S&T can stimulate the creation of new values
in industry. The national development plan, Vision 2030, acknowledges the need for
investment in S&T. For example, it explicitly states:
Vision 2030 proposes intensified application of STI to raise productivity and efficiency
levels across the three pillars (economic, social and political). It recognizes the critical
role played by research and development (R&D) in accelerating economic
development in all the newly industrializing countries of the world. The Government
will create and implement an STI policy framework to support Vision 2030. More
resources will be devoted to scientific research, technical capabilities of the workforce,
and in raising the quality of teaching mathematics, science and technology in schools,
polytechnics and universities (GoK 2007).
 The Vision projects that the future ST&I will encompass many fields such as nanoscience,
nanotechnology, tele‐robotics, biochemistry, biotechnology, space technology, geo‐
information technology, and virtual reality (VR). They are supposed to help meet such
human needs and concerns as life support systems, more habitable planet, reduction of
carbon emissions and conservation of biodiversity.

 In order to achieve the strategically‐set growth objective, the government is committed to


seven major actions: 1) macroeconomic stability, 2) continuous governance reforms, 3)
enhanced equity and wealth creation, 4) expansion of economic infrastructure, 5)
science/technology and innovation (STI), 6) land reform, and 7) security & public sector
reforms.

Medium Term Plans


 Vision 2030 is in effect a series of successful five-year development plans called Medium-
Term Plans (MTPs), with the First Medium-Term Plan covering the years 2008-2012, and
the Second Medium-Term Plan covering the period 2012-2017, and so on.
 In both plans, the “foundations for national transformation” that anchored the three pillars
were: infrastructure, ICT, STI, land reforms, public sector reforms, labor and employment,
security and peace building, with national values and ethics, and Ending Drought
Emergencies (EDE) newly added to the list for the Second MTP. In addition to economic
and infrastructural developments, a new Constitution was enacted (2010) as part of the First

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MTP as part of national healing and reconciliation following the post-election violence of
2007-2008.
 Both MTPs recognized ICT and STIs as important factors in driving growth and national
transformation. Below is a table summarizing the problems and challenges identified in the
First MTP, the achievements since the launch of the First MTP, and the current issues and
challenges as listed in the Second MTP, for ICT and STI each:

Table 14: Vision 2030 Medium-Term Plans - Issues & Challenges

ICT STI
 Lack of an institutional and legal frame  Enhancing the role of STI in
work to implement automated services national development;
including electronic transactions;  Ineffective coordination and
 Lack of standardization of components lack of critical resources and
and systems being procured and applied infrastructure to develop and
across the Government; integrate STI; Inability to
 Limited country-wide ICT awareness acquire, maintain and retain
that hinders cultural and attitudinal modern equipment as well as
change; personnel;
 A wide internal digital divide between  Weak linkages with the
Issues and rural and urban areas as well as low productive sector, as well as
challenges, bandwidth; regional and international
1st MTP  Financial and human resource counterparts;
constraints;  Lack of an integrative policy
 Bridging the “islands of automation” by framework; Mismatch between
allowing sharing of information among skills acquired from Kenyan
agencies; High costs of ICT utilization training institutions and the
and maintenance; industry requirements;
 High costs of migrating from analogue to  Inappropriate and unresponsive
digital broadcasting; intellectual property rights
 Challenge of obtaining a better regimes and lack of awareness
integration of ICT solutions into of STI benefits.
company and public policies.
 Kenya became world leader in electronic  Implementation of the 2013
cash transfer through mobile telephony STI Act;
platform;  Establishment of the National
 All major towns in the country now Bio-Safety Authority in 2009;
connected through the National Optic  Establishment of the National
Fiber Backbone Infrastructure (NOFBI) Science, Technology and
and Government Common Core Network Innovation Fund;
Achievements (GCCN);  Award scheme for recognition
 Internet subscription rose from 1.6 of outstanding scientists in
million subscribers in 2009 to 8.5 million Kenya;
in 2012;  Construction of new
 Government developed tier-2 laboratories and workshops in
Government Data Center (GDC) all TIVET institutions.
infrastructure to ensure security of public
data;

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 Bandwidth support to government offices


was increased from 80 to 100 MB
broadband Internet;
 Implementation of 2009 Kenya
Communications (Amendment) Act,
2010 Kenya Information and
Communications Regulation.
 Inadequate financing coupled with  Lack of an institutional and
delayed disbursement; legal frame work to implement
 Inadequate human capacity for research automated services including
and development in ICT and the film electronic transactions;
industry;  Uncoordinated and fragmented
 Decentralized ICT coordination leading innovation system with weak
to slow implementation if automated synergies and networking
systems, duplication and implementation among government, research
of ICT innovations; hand training institutions,
 Digital divide between the rural and industry, financial sector and
Issues and professional groups;
urban areas which limits public
challenges,
awareness of the advantages and  Lack of a harmonized National
2nd MTP
opportunities of ICT; Research Policy, agendas and
 Lack of harmonized data management priorities;
system;  Inadequate funding for
 Vandalism of ICT infrastructure; research;
 Lack of or inadequate supply of  Absence of skills inventory and
affordable and uninterrupted power inadequate alignment of the
supply; planning of human resource to
 Sophistication of cyber attacks and development needs;
crimes.  Weak STI culture among the
population

 The Delivery Secretariat, the coordinator, enforcer and advocate for the implementation of
Vision 2030, released a report on the highlights of Vision 2030 achievements in 2013. The
report contained an update on the progress of science and technology in Kenya, once again
showing the government’s resolution to promote S&T. It stated that “the draft (of the)
Science, Technology and Innovation (STI) and Information Bill” has been finalized and is
ready to be presented to the Cabinet while a Research Fund has been established under the
National Council for Science and Technology” and that “1% of the annual budget shall be
factored towards research and innovation” (GoK 2013b). The National Bio-Safety
Authority, the National Science, Technology and Innovation Fund, and an award scheme
for recognition of outstanding scientists in Kenya have been some of the flagship
accomplishments of the first medium-term plan.

Flagship Projects
 A wide range of projects are carried out under the purview of the Vision 2030, with a
portfolio of flagship projects to set the pace and “take the lead in generating rapid and
widely-shared growth” (GoK 2013a). For the duration of the second medium-term plan
(2013-2017), the Government of Kenya has announced several flagship projects under the

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motto of “Harnessing Science, Technology and Innovation for Regional and Global
Competitiveness”:
Science, Technology, Engineering and Mathematics (STEM) program;
Coordination of the Technology, Innovation and Commercialization program;
Country Technology and Innovations Delivery Services program;
Nano-sciences, material science and new production technologies program;
Biotechnology and biosciences program;
Telecommunications, electronics and computers technologies program;
Natural products program
 These flagship programs focus on specific issues in the broad spectrum of science,
technology and innovation, but it does not mean that other aspects of S&T do not have
relevance to Vision 2030. Whereas plans for STI as outlined above deal more closely with
what we would refer to as ‘science and technology policy’, goals of Vision 2030 deals more
extensively with various sectors of the Kenyan economy and society, many of which will
rely greatly on applied sciences and engineering for their achievements.

Table 15: Vision 2030 Flagship Projects

Sector Aims Flagship Projects


Expansion of railways and roads
A country firmly interconnected through
programs; Development of the Lamu-
a network of roads, railways, ports, and
Infrastructure Southern Sudan-Ethiopia Corridor;
airports; Buildings and other public
Research in appropriate building
works.
technology.
Generate more energy at lower cost and
increase efficiency in energy
Increase electricity availability by
consumption; implement strong
5,500MW by 2017; Increase capacity of
regulatory framework, encourage private
diesel plants, hydropower, geothermal
Energy generators of power, and separate
resources, wind power, coal, go-
generation from distribution; generate
generation and liquified/compressed
new sources of energy through
natural gas.
exploitation of geothermal power, coal,
renewable energy resources.
ICT for expanding human skills and
introducing a system of producing,
distributing and utilizing information and Expansion of Fibre Optic Networks to
knowledge; Improve quality and cover hospitals, schools and police
Information and
reliability of government communication stations; Set up national ICT Centers of
Communication
system —informatization of IDs and Excellence; Promote local ICT software
Technology
passports, public examination results and development; Apply ICT for agriculture
candidate selection; Online submission of and governance.
tax returns; electronic reporting of
corruption.

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Sector Aims Flagship Projects


Invest in training, research and
development for basic manufactured
Creation of SME parks, industrial parks;
goods for the larger eastern and central
Development of industrial and
Africa; restructuring local industries that
Industrialization and manufacturing clusters; Development of
use local raw materials but lack a
Manufacturing iron and steel mill; Establish the Kenya
competitive edge (eg. sugar and paper);
Industrial Research and Development
add value to imported good that could be
Institute (KIRDI).
re-exported through last step of value
addition (eg. metals and plastics).
Adopt climate-smart agriculture such as
harnessing farm waste as source of
organic fertilizer and use bio-fertilizers
Fertilizer cost reduction program;
Agriculture that do not contribute to harmful
Establish Disease Free Zones.
emissions; use better weather forecasting
technology and early warning systems;
grow resilient food crops.
Water and sanitation: conserve water
Rehabilitation and protection of water
resources and start new ways f harvesting
towers; Water resources and
and using rain and groundwater for both
management program; Trans-boundary
Water and Sanitation potable water and irrigation; rehabilitate
waters; Urban and rural water supply
the hydro-meteorological data gathering
program; Irrigation and drainage
network; construct multi-purpose dams
infrastructure; Land reclamation.
and canals.
Lower the incidence of HIV/AIDS,
malaria and tuberculosis and lower infant
mortality; provision of robust health
Establish e-Health hubs; Locally derived
networks and improve the quality of
natural health products; Modernise
health service delivery.
Kenyatta National Hospital; Modernise
Health Environment: increase forest cover and
Moi Teaching and Referral Hospital;
lessen environment-related diseases;
Country-side scale up of community
lessen pollution and improve waste
health high impact interventions;
management systems; enhance disaster
preparedness; secure wildlife corridors
and migratory routes.
Increase forest cover and lessen
Strengthen environmental governance;
environment-related diseases; lessen
Waste management and pollution
pollution and improve waste management
Environment control; Rehabilitation of urban rivers;
systems; enhance disaster preparedness;
Forest and wildlife conservation and
secure wildlife corridors and migratory
management;
routes.

Development of Lamu, Isiolo and Lake


Turkana Resort cities; Development of
Increase tourism arrivals and earnings, coastal beach ecosystem management;
Tourism
and promote domestic tourism. Premium and under-used parks
initiatives; Eden Cradle of Mankind
Project;

Facilitate process of land administration,


Land Reform, Implementation of strategic
computerization of land registries, and
Urbanization and development and investment plans in six
establishment of spatial data
Housing metropolitan regions;
infrastructure to track land-use patterns.

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Sector Aims Flagship Projects

improve the practice of community Forensic laboratory; installation of


Security policing; adopting ICT in crime detection CCTV cameras in major cities; Establish
and prevention national security data center.

 This brief list of the major sectors and the respective flagship projects mentioned in Vision
2030 demonstrates that science, technology and engineering have a large role to play in the
attainment of the goals of the national development strategy.
 The list above is not exhaustive. For instance, the infrastructure sector will need to be
addressed urgently because it will form the foundation for other sectors, including stable
communication systems, seamless operations of healthcare facilities, and so on. In addition,
infrastructure will require constant re-construction and maintenance, which make critical
domestic capacity manage the nation’s infrastructure. Reliable and efficient infrastructure
is important for growth. Only by achieving technological independence will Kenya be to
achieve sustainable growth in all other sectors.
 The training of domestic scientists and engineers who will lead these flagship projects is
the most sustainable way to achieve technological independence. Although this will require
some initial investment, producing highly-skilled human resources at home will enable
Kenya to decrease reliance on donors and foreign contractors. Educating scientists and
engineers requires a well-concerted system of S&T policy, education policy and curriculum,
administrators, faculty and students, equipment and facilities, but most of all, a clear vision
of the purpose of the education.

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Chapter 3. Project Rationale

Why Kenya Advanced Institute of S&T?


 The most fundamental question to ask for this feasibility study is why Kenya needs Kenya
Advanced Institute of S&T. This question can be approached by answering two
component questions: (1) why Kenya needs a new initiative in S&T; (2) why this would
require the establishment of a new higher education institution.

S&T for Fast-Track Modernization


 It is now a truism that S&T is essential to the development of a nation. A number of
countries in the world invest their resources in S&T for strengthening the national
security, improving public health, and creating new jobs.

 A large literature dating back to the landmark report, Science, the Endless Frontier, by the
then head of the U.S. Office of Scientific Research & Development, Vannevar Bush, links
governmental investment in basic science to technological innovations and ultimately to
national prosperity and social well-being (Bush 1945). Economists and technology
management scholars have also noted the critical role of technology in growth and
development, as epitomized in endogenous growth theory (Aghion & Howitt 1998, Romer
1986 & 1990).

 The question to ask is thus not whether S&T is needed, but where it is needed and why.
Therefore, identifying the areas and sectors that can most benefit from an investment in
S&T is one of the most critical tasks for this F/S work.
 In identifying the strategic fields of S&T to maximize its potentials for fast-track
modernization, it is crucial to understand both strengths and weaknesses of Kenya’s current
economy.
GDP per capita in Kenya has shown a steady increase over the last decade. There was
a downturn in 2008 by the global financial crisis coupled with the post-election
violence in Kenya, but the economy has rebounded since, showing growth rates higher
than 5% in 2010-2011. Overall, GDP per capita growth rate in Kenya remains relatively
low, however, equivalent to 5% of the world’s average. As discussed in detail in the
previous chapter, Kenya’s economy is heavily reliant on the services (ICT services and
tourism) and agricultural sectors, whereas the contribution of industries, especially
manufacturing, is low.
For Kenya to achieve faster and sustainable growth, expanding the manufacturing
sector and maximizing exports will play an important role. Data shows that total
country exports are valued at 4.57 billion USD, whereas total country imports are

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almost three-fold, at 14 billion USD. Imports far exceed exports, and Kenya has been
unable to reverse this trade deficit.

Figure 16: Major Exporters and Importers of Kenya

 Despite these shortfalls in terms of economic indicators, Kenya is nevertheless the most
industrialized country in East and Central Africa. This is not to say that Kenya does not
need to invest further in industrialization and promoting its manufacturing sector.
 Rather, in order for it to maintain this position as the regional economic leader, investments
must be made for manufacturing of new value-added products for both export and domestic
consumption to replace imports, while also maintaining and maximizing the competitive
advantage Kenya currently has in terms of agricultural and horticultural exports.
 In other words, although industrialization is a key factor in economic growth, Kenya should
not neglect its agricultural resources — it should aim to catch all birds. This sentiment is
shared with the Kenyan government, which targets growth in all three economic sectors as
in the following table.

Table 16: Real GDP and Sectoral Growth Targets (2013-2017)


(Unit: %)

2012 2013 2014 2015 2016 2017


Overall GDP 4.6 6.1 7.2 8.7 9.1 10.1
Agriculture 3.8 5.1 6.5 6.8 7.1 7.2
Industry 4.5 6.0 7.6 8.6 10.1 10.2
Services 4.8 6.5 7.3 9.4 10.0 10.1
Source: AfDB/OECD/UNDP, African Development Outlook: Kenya (2014)

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 As examined in the previous chapter, Kenya Vision 2030 explicitly acknowledges the utility
of S&T in developing Kenya into a middle-income country, with particular emphasis on the
role of ICT in fast transformation of the economic and social infrastructure suitable to a
middle income country.
 Thus Vision 2030 stipulates that efforts should be made to nurture Kenyans from the
youngest possible age to pursue careers in ST&I and develop capacities and competences
in technology management. Human resource development (HRD) is basically intended to
build a critical mass of human resource capacity to effectively harness and apply ST&I for
solving problems and enhancing human welfare.

Why a New University?


 Given the recent arrivals of new universities in the scene of Kenya’s higher educational
system, one might say that Kenya does not need another university. The F/S Team fully
agrees that Kenya may not need another university of the same kind that exists now.
Rather, it is the core finding of the F/S Team’s work that Kenya needs a “different”
university.
 As stated in the second Medium Plan of Vision 2030, science, technology and innovation
(STI) is the “foundation for national transformation.” Indeed, one of its flagship programs,
as mentioned above, spells out the Kenyan government’s commitment to strengthening
STEM education as follows: “The STEM education and training applies inter-disciplinary
research in learning and cognition, STEM integration, instructor development and
evaluation and assessment to STEM teaching from early childhood through graduate
education (GoK 2013).”
 Thus the establishment of the New Institute shall provide specialized research and training
in various leading‐edge engineering technologies and advanced science fields to help the
country proceed with fast‐track modernization.
 On the other hand ‘the repackage STEM’ project is expected to promote experiential
learning, innovation creativity, and attraction to STEM‐related disciplines through well‐
coordinated programs in education, R&D and training in all aspects of ST&I at all levels
starting from early childhood to secondary level up to university.
 Under the STEM flagship program, the government has expressed its plans to establish
“an advanced research institute in Kenya (that) will provide for specialized training in
various engineering and science fields.” Although there do currently exist establishments
of higher education specialized in the field of S&T in Kenya, for example, Jomo Kenyatta
University, the translation of university research into industrial application has been weak.

Why KAIST?
 Several S&T-centered universities in developing countries were established benchmarking
the Massachusetts Institute of Technology (MIT) that emerged as the topmost institution

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of basic and applied science and engineering from World War II. Well-known cases of
“exported MITs” include the Indian Institute of Technology Kanpur and Iran’s Aryamehr
University of Technology (Leslie & Kargon 2006).

 It should be noted, however, that the gaps in terms of social and economic development
levels between the US and low-income countries pose a challenge to emulating MIT.
Rather, KAIST can provide a much more useful case of benchmarking, given that Kenya
is to utilize S&T for fast-track modernization as South Korea did forty years ago.

 Before providing the historical perspective on the origin and roles of KAIST for South
Korea’s industrialization, the KAIST members of the F/S Team want to make it clear that
the experience of KAIST cannot be replicated but benchmarked.

Historical Perspective
 The history of South Korea and KAIST can shed light on the question of how to establish
an S&T university and how to manage it as a force for industrialization. Due to its
contribution to South Korean development through its endeavors in applied S&T research
and production of highly-skilled scientists and engineers, KAIST is a strategically apt
partner for Kenya. KAIST has initially been established to produce masters and doctoral-
level graduates for strengthening the South Korean R&D sectors for industries, but has
today progressed into a leading institute of research in the world, with internationally-
acknowledged research and faculty in both natural sciences and engineering.
 South Korea has the experience of transforming itself from an agricultural to an industrial
society, and this transformation is greatly owed to investments made in the advancement of
science and technology (Kim 1997, Bae & Park 2013). In 1960, more than 65% of the entire
population earned a living through the agricultural sector, and the GDP per capita hovered
around 80 USD. In addition to rice farming and fishery, the main exports consisted of raw
natural resources, such as iron ore, tungsten, raw silk, anthracite, graphite.
 Following the Korean War (1950-1953), South Korea found itself in a disadvantageous
position because all major industrial infrastructure and resources, such as hydroelectric
plants, chemical plants and carbon sources were located in the North. One of the very first
government projects in the post-war period was to repair and newly install electricity power
plants. As a result, the amount of domestic electricity production was increased from 336
kWh in 1951 to 406,780 kWh in 2009. Another major project was the establishment of
fertilizer plants. Despite being an agrarian economy, South Korea relied entirely on
imported fertilizer. Starting from the first fertilizer plant built in 1955, a total of 5 plants
were built, and operated at full capacity by 1967. Fertilizer imports were cubed by 90% by
1970, and exports exceeded imports by 1971 (Ban 1980).
 The government then strategically planned for radical changes in industrial structure: a shift
from agriculture to labor-intensive light industry (1960s-1970s), then a shift from light
industry to capital-intensive heavy industry (1970s-1980s), and finally from heavy industry
to knowledge-intensive high-tech industry (1980s-1990s) (Amsden 1992, Kim 1999, Hong
2012). GDP per capita increased to 186 USD in 1971, then finally to 26,200 USD in 2013.

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Industrialization for self-sustainability and export-oriented manufacturing, based on


domestic S&T and human resources were key factors in realizing the growth of South
Korean economy.
 KAIST was established in 1971 with the vision of being the source of Korea’s future
generation of highly-trained and qualified scientists and engineers. Its initial mission was
to produce leaders that would contribute to national industrialization and economic
advancement, not elites who would push at the frontier of knowledge.
 From its inception, KAIST was designed to be an independent, graduate-only institution
with a curriculum that was unlike that of other existing universities in South Korea at the
time. It stressed the idea of applied sciences and technology for late industrialization and
economic growth. Hence it emphasized problem-solving skills and hands-on experience
rather than traditional textbook learning.
 All students were required to master the core curriculum that included statistics, quality
control, computer programming, and industrial organization and management — assets that
were deemed necessary for future industrial leaders. Students were also trained very
rigorously so as to produce graduates who could tackle any problem in the ‘real world.’

Key Contributions
 As shown in the following figure, the South Korean economy started to take off almost
simultaneously with the foundation of KAIST. Engineers graduating from KAIST in the
early 1970s were the main human resources underlying South Korea’s Heavy
Industrialization Drive.

Figure 17: KAIST and South Korea's Development Trajectory

 Unlike many other universities in Korea at the time of the creation of KAIST, KAIST was
explicitly mandated to generate highly skilled engineers to support the nation’s
industrialization. Thus, strategic collaboration with various industries was a crucial
component of KAIST. Indeed as specified in “KAIST Law,” training high-quality scientists
and engineers was a vital mission of the institution. Its mission was also to satisfy the needs
of Korean industry and Korean industrial establishment for highly trained and innovative

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specialists, rather than to add to the world’s store of basic knowledge. KAIST encouraged
and offered exchange programs with corporations, where students could gain field
experiences at sponsor firms, and employees could receive training while working full-time.
In this regard, industries were expected to be more closely involved, rather than just provide
financial support.

Current Performance
 KAIST faculty currently accounts for about 15% of the total faculty of science and
engineering in South Korea. And KAIST graduates comprise approximately 70% of all
Samsung engineers in semiconductor industry.
 The chaebol corporations such as Samsung, Hyundai and LG are one of the characteristics
of South Korean economic structure, being the powerhouses of technology and
manufactured goods and services. KAIST has produced the most number of executives at
Samsung compared to all other universities in South Korea.

KAIST 101

SEOUL NATIONAL UNIVERSITY 97

SUNGKYUNKWAN UNIVERSITY 75

YONSEI UNIVERSITY 68

KYUNGPOOK UNIVERSITY 65

HANYANG UNIVERSITY 63

0 20 40 60 80 100 120

Source: KAIST Admissions Office (2014)


Figure 18: Alma Mater of Samsung Executives (as of 2013)

 In terms of academic research, in the span of just 40 years KAIST has caught up with the
best Asian universities that have existed for much longer time.

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Table 17: 2014 QS University Rankings for Top Asian Universities

Seoul Tokyo
Tokyo Kyoto
Field KAIST National Institute of
University University
University Technology

Mechanical Engineering 21 25 10 30 36

Electrical & Electronics


24 19 14 34 25
Engineering
Computer Science 36 42 20 51~100 51~100
Civil Engineering 32 38 4 8 29
Chemical Engineering 21 17 7 8 41
Materials Science 16 31 17 26 20
Mathematics 51~100 51~100 23 29 51~100
Physics 51~100 37 9 21 34
Chemistry 17 16 9 13 20
Total 60 35 32 35 66

Identity of the New Institute


 The role of science and technology in overcoming obstacles to national development and
high quality of life cannot be overstated. In this vein, the planning of the New Institute and
establishing its identity and purposes are a crucial part of the endeavor.
 Once again, the questions that must be asked are: (1) what kind of science and technology
must be promoted; (2) how S&T will be mobilized to promote growth; and (3) how the New
Institute can meet the needs of the society. The first question will be addressed in the later
chapters. While answering the other questions, this chapter also examines several related
issues, ranging from practical to political factors to philosophical foundations that the
borrower, lender and the consortium must take heed.
 The New Institute will be established as a graduate-only university, though further
expansion to undergraduate programs may be considered once the university is firmly
established. This focus on graduate students is mainly because in Kenya there is great
shortfall of skilled engineers and scientists who go through rigorous training in graduate
programs current S&T education, as demonstrated in the later chapter containing the gap
analysis of demand and supply of skilled engineers in Kenya.

Missions of the New Institute


 The mission of the New Institute cannot entirely be unique, for other existing universities
and institutes in the region would also aim for excellence and affirm their role in serving
the needs of society. In a sense, sharing a common vision is inevitable. Yet the New Institute

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should not be redundant in its endeavors, especially in terms of academic excellence. The
only factor that will allow the New Institute to be distinguishable from other universities of
longer histories is to establish and maintain a high standard of quality in research and
education from the very beginning.
 We want to reiterate that the New Institute should not compromise on the quality of faculty
and incoming students, the rigor of academic curricula, and the social relevance of the
research projects carried out. Every single one of these is integral to establishing and
maintaining the New Institute as the center of excellence. Failure to do so would very likely
render it a university redundant in the mix of the existing ones. The New Institute should
represent, as well as demonstrate, excellence and high standards. These qualities will not be
given: a strong motivation and commitment by the government and administrators, as well
as a personal dedication on the part of faculty members and students will be required.
 As a public school, the New Institute will receive political and financial support by the
Kenyan government. Therefore, its mission should be closed tied to the objectives set in the
Vision 2030 medium term plans. Not only is this the most appropriate place for the New
Institute to start in its contribution to national development, but also a good way to gain
further support of the government.
 In order for the New Institute to gain traction and momentum, it must show results within
the first few years of its establishment. The university’s curriculum should be designed to
address this concern. It will thus provide students with academic training that will meet the
needs of the industry and society. This is not just a matter of equipment and facilities and
internships as had been pointed out by the East African students, but a prioritization of fields
and sectors to be tackled by the university.
 Therefore, we recommend that the strategy of selection and concentration should be taken
at least in the first few years rather than trying to establish a fully-fledged S&T university.
the New Institute should aim towards a curriculum that is designed based on informed
selection and dedicated concentration. It should then be able to accommodate a curriculum
that breaks away from the traditional structures of higher education curricula. Tensions
among various stakeholders may arise, but a traditional academic structure will not be what
the New Institute needs.
 The strategic selection of major areas of education is also important in light of competition
with other higher education institutions in the region. While Kenyan universities dominate
the list of top 100 African universities among East African universities as shown below, the
New Institute needs to develop niches in order to compete effectively with other universities
in the East African region.

Table 18: East African Universities on the List of Top 100 African Universities

University Country Rank


University of Dar es Salaam Tanzania 10
University of Nairobi Kenya 19
Makerere University Uganda 21

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Moi University Kenya 52


Addis Ababa University Ethiopia 61
Kenyatta University Kenya 65
Strathmore University Kenya 84
Jomo Kenyatta Univ. of Agriculture & Technology Kenya 97
Source: Africa’s Top 100 Universities, African Economist, 2015

Key Stakeholders
 A number of organizations and entities have interests and stakes in this project to build a
new higher educational institution, as shown in the following figure. Some are potential
employers of future graduates of the New Institute, while others have influences as
regulators to ensure the quality of higher education in S&T.

Figure 19: Key Stakeholders for the Kenya KAIST Project

Kenya Advanced Institute of S&T and Konza Techno City


Why Konza?
 Konza Technology City (KTC) is a key flagship project of Kenya Vision 2030 aimed at
positioning Kenya as a leading ICT nation in Africa by leveraging Kenya’s IT enabled
sector (ITES). It also aims to be a global technology hub, focused on four economic

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sectors that will advance technology spending and technology growth in Kenya:
Education, Life sciences, Telecommunications, and ITO/BPO.

 At least three rationales for Konza as a strategic site for the New Institute can be made.
(i) Symbolic Value: KTC is envisioned as a green, smart, inclusive and vibrant African
Silicon Savannah. This association of KTC with “technology, future, green, smart,
sustainability” leads it to be potentially ideal place for an advanced S&T institution.
(ii) Strategic Utility: Based on a Public-Private Partnership (PPP) approach, KTC is
supposed to promote close collaboration with private companies, especially ICT firms.
The availability of high-tech companies makes KTC as the testbed of synergistic
collaboration of academic and industrial entities.
(iii) Locational Advantage: KTC is located along the A109 Highway which connects
Kenya with the neighboring countries. Located 60 km from Nairobi and 400 km from
Mombasa, KTC is positioned as a major gateway from the coastal regions to Nairobi. The
state-owned Kenya Railways Corporation is currently overhauling the railway between
Nairobi and Mombasa through the Konza station. When this upgrading is completed,
transit time from Konza to Nairobi Central Business district will be about 40 minutes.
 In particular, according to Konza Technopolis Development Authority (KOTDA) in charge
of overall management and supervision of KTC development, the University Band within
KTC is envisioned as a “confluence of superb teaching, research, scholarship, creative
works and service, a special place where innovative groups develop and apply new
technology, and a place where higher education and industry come together” (KOTDA
2015).

Current Status of the Konza Techno City Project


 The Master Plan for Konza envisions Konza as a mixed-use, high density walkable city
accommodating a diversity of programs and districts. The master plan follows a “stich”
framework.

Table 19: Konza Master Plan Description

The master plan follows a “stitch” framework, composed of a mixed use “bar” that runs east-
west off Mombasa Highway and is intersected by a series of program “bands” that run north-
south. These bands include a university, residential, science and tech, and an office band.

The stitch master plan also contains a series of neighborhood parks, located throughout the city
with varied orientations. Most parks are connected to the green boulevard, a 60 meter parkscape
and public transit corridor.

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The development of the Konza master plan will be monitored by the Konza Technopolis
Development Authority. The authority has entered into a 99-year lease with the Central
Government of Kenya and will have the authority to sublease parcels to developers, finance the
build-out of the public infrastructure, and package incentives to attract investors and tenants.
(Source: Master Plan, Konza Techno City Website, www.konzacity.go.ke)

Figure 20: Konza Master Plan Land Use

 According to its Master Plan, Konza is planned to be developed in phases, with an


approximate daytime population of 35,700 people including 16,675 employees and 6,500
students. 5,700 employees and students are expected to commute from outside Konza.
Additional future development of the city is anticipated to reach a population of 230,000
people during the day and 180,000 people at night (KOTDA 2010).
 Currently KOTDA projects the City to be: 5,000~10,000 residents for Phase 1A (running
to 2018), 30,000 residents including 6,500 students and over 20,000 jobs for Phase 1
(running to 2020), ultimately building out to 200,000 residents and contributing 10%
annually to GDP growth by 2030.

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(MDP: Master Delivery Partner)


Figure 21: Konza Techno City Phase 1 Targeting Knowledge Workers

 Some of the milestones achieved towards the implementation of the KTC Project include
(MIC 2014):
Engagement of International Finance Corporation (IFC) as the Transaction Advisor to
oversee the planning of the project
Completion of various feasibility studies
Approval of the Local Physical Development Plan (25 February, 2013)
Creation of the 10 KM buffer zone around the City
Drilling and equipping of seven boreholes
Finalization of the detailed implementation plan and strategy by Master Delivery
Partner 1 (MDP1) (in February, 2013)
Establishment of Konza Technopolis Development Authority (KOTDA) and
appointment of a Board of Directors
Submission of the Draft KOTDA Bill to the Attorney General to expand the mandate
of the Authority
Approval of design drawings for the construction of an iconic Sales Pavilion by the
Directorate of Public Works

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Approval of the Strategic Environmental Assessment (SEA) by National Environment


Management Authority (NEMA) (February 2014)
 KOTDA has signed a US$25 million contract with Tetra Tech Inc.(USA), who will oversee
the development of Phase 1 to world class smart city building standards. Tetra Tech Inc. of
Denver, Colorado (USA) is a leading firm in the industry specialized in master plan‐level
design and financing for sustainable options to city‐ and project‐scale construction
management.

 Phase I, initially planned for 2014~18, is now extended to 2020. Thus, the programming
status of the following figure is adjusted with two extra years (KOTDA 2015).

Figure 22: Konza Techno City Programming Status

 KOTDA has just selected MDP 2, which is a consortium of nine firms from the USA,
Germany, Netherlands, UAE and Kenya. Tetra Tech, Inc., a Denver, Colorado, based
engineering firm is the lead firm.

Potential Risks
 Despite apparent potentials and great publicities of KTC, there remain some concerns about
its prospects. The F/S Team thus recommends that the Kenya Advanced Institute of S&T
Project be tied to the timely progress of the Konza Techno City Project and a full review of
the risks and other problems be conducted before the final decision to launch the New
Institute in Konza. Some of the risks that can be anticipated at present are listed below.

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 As KTC is based on a PPP approach, its success and sustainability hinges on adequate
amount of private investment. This in turn depends on healthy economic conditions,
especially sustained growth, so as to allow global and domestic companies to make more
aggressive investment. Due to the continuing worldwide recession since the late 2000s,
however, overall economic prospects are hard to be projected to be positive.
 KTC’s locational approach may become its curse if the scheduled transportation work is
not completed in a timely fashion. The F/S Team visited it twice, and it took longer than
one hour due to the poor conditions of the road as well as heavy traffic between downtown
Nairobi and the Jomo Kenyatta International Airport.
 Konza City falls within the jurisdictions of three counties – Machakos, Makueni, and Ol
kejuado, necessitating cross-county administrative collaboration. In the course of KTC
development, certain issues including infrastructure construction cross-cutting multiple
counties may cause disagreements among local governments as well as between them and
the central government.

Figure 23: Konza Blueprint

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Figure 24: Konza Construction Site (as of July 2015)

 KOTDA also provides the risk assessment of its own organization as follows (KOTDA
2013b).
Table 20: KOTDA Risk Assessment

Short-term Risk Factors


Passing KOTDA Statute in Parliament:
A special law to facilitate KOTDA’s activities must go through the parliamentary approvael
process.
Hiring high-quality KOTDA staff:
As the development of Konza involves a wide range of skilled work, KOTDA must be able
to recruit highly talented staff to support its activities.
Funding for site pavilion and other preliminary structure:
The current site has no stable building to house KOTDA functions. A new pavilion needs
to be set up on the site.
Contracting a qualified MDP2 team:
The second Master Delivery Partner must be recruited to plan for the second phase .
Securing water allocation from Thwake Dam:
Konza needs to secure water supply from the river with a new dam to be built soon.
Medium-term Risk Factors
Providing off-site infrastructure:
Not only the infrastructure within the site but off-site infrastructure must be built in a timely
manner.
Initiating procurement process for PPPs:
As Konza development relies on the public-private partnership, it is crucial to secure private
interest and investment.
Providing non-PPP on-site infrastructure:
Some infrastructure must be directly supplied by GoK.
Securing anchor tenants using defined evaluation criteria and recruitment strategies:
This is perhaps the biggest challenge. The tenants of Konza city must be qualified for the
goal and vision of this new innovation-driven city.

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Chapter 4. Governance

Legal Framework
Special Law vs. Special Status
 There exist two public entities relevant to the establishment of the legal framework for the
New Institute establishment. One is the Commission for University Education (CUE),
which is the regulator of all matters regarding the foundation and management of higher
educational institutions, whether public or private. It was created by the Universities Act,
No. 42 of 2012, as the successor to the Commission for Higher Education that was
established in 1985. The other is the Engineers Board of Kenya (EBK), as it oversees the
accreditation of engineering education. It is a statutory body established under the Engineers
Act (2011) and a successor to the Engineers Registration Board (1969).
 One of the primary functions of CUE is accreditation of universities. Accreditation means
the “public acceptance and confirmation evidenced by award of a Charter, which a
university meets and continues to meet the standards of academic excellence set by the
Commission” (CUE 2013).
 The best form of the legal framework for the New Institute under Kenya’s current legal
system governing university creation and management is to establish it as “specialized
degree-awarding or research institution” per Universities Act 2012 Clause 24 (1a). Of
particular note is the expression of “strategic national importance” attached to this clause.
As Kenya Vision 2030 clearly states the necessity of Kenya Advanced Institute of Science
and Technology, the New Institute is uniquely positioned to claim for such importance.
 The F/S Consortium initially made strong recommendation that a special law be enacted to
ensure institutional autonomy of the New Institute. This was largely because such a law
would maximize the probability of the New Institute to become a center of excellence within
the shortest span of time, as demonstrated in Korea’s KAIST experience. With this special
law, the New Institute would be founded upon a legal framework fundamentally distinct
from that governing existing Kenyan universities so that it can attempt innovative
approaches unconstrained by existing conventions.
 If a special law were to be enacted, it would will specify that:
The New Institute is eligible to offer the master and Ph.D. programs as other
universities of Kenya.
The New Institute is financially supported by the Kenya government. Stable income
must be provided by the government funding for basic institute operations such as
salaries of faculty and staff, scholarship for students, operational cost, and maintenance
cost for buildings, etc.
Faculty and students are recruited via the school’s own procedure.

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Students will be supported financially to help them not to work for tuition and living
expense. They are provided with dormitory facilities on the campus.
Faculty will be provided higher-than-average salaries, research fund and special
training opportunities to ensure privileged positions and pride as members of the New
Institute.
A foreign university can be a mentoring university of the New Institute.
The period of education at the New Institute is equivalent to the requirement of three-
year industry experience for the professional engineer status. (This means that if a
student entering the New Institute graduates after two years of master’s program, he or
she will only need to accumulate one more year of industrial experience in order to take
the exam for the professional engineer status.)

Source: CUE (2014)


Figure 25: Logical Framework of University Accreditation

 However, towards the end of the F/S work, MOEST as well as CUE expressed the concern
with setting up the New Institute under a separate law for the following reasons.
First, the proposal to create the New Institute under a separate law is very likely to be
viewed as a step backward by government officials and other stakeholders. Before the
creation of the Universities Act 2012 Kenyan universities were set up under their own
separate acts, resulting in inconsistencies and imbalances in quality. The Universities
Act 2012 was the nationwide attempt to put all universities under the same legal
framework for quality control. Therefore, proposing to set up a new university under

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its own law is very much likely to be interpreted as an insensible attempt to reverse the
new law.
Second, even if it is possible to set up a new university with its own law, it would take
much longer time than utilizing the specialized degree awarding institution clause,
which will risk the loss of the momentum for the project.
 Given such conditions, the best legal framework to guarantee institutional autonomy of the
New Institute appears to be the obtainment of the special legal status as the specialized
degree-awarding institute.
 It is also important to note that named as an “institute” rather than a “university,” the New
Institute will enjoy a special status as stipulated in the aforementioned clause for the
specialized degree awarding institution.
 During the F/S Team’s Fourth Field Trip, CUE verified that the Kenya Advanced Institute
of Science & Technology could be established under the aforementioned clause of
Universities Act 2012 as shown in Appendix B1.

Special Benefits for Students (Industrial Experience Equivalence)


 In order to enhance the special status of the New Institution, the F/S Team consulted with
EBK for special incentives that could be provided for students. During the Complementary
Field Trip, EBK agreed that the length of education at the New Institute could be considered
to be counted towards the three-year industrial experience requirement for the professional
engineer status as shown in the Complementary Field Trip Aide Memoire in Appendix A3.
 The magnitude of this special treatment cannot be underestimated, for it is very hard for
graduate engineers to accumulate industrial experience before applying for the examination
required for professional engineer qualification.
In Kenya, engineers are registered in different categories, which include graduate
engineers, professional engineers, and consulting engineers.
For the status of the graduate engineer, one must hold a basic undergraduate degree in
engineering program approved by EBK. Thereafter, one works under the supervision
of a professional engineer to gain industry experience lasting three years at minimum.
In order to become a professional engineer, a graduate engineer has to sit for
professional interview/examination after accumulating industry experience of three
years. This interview/examination is intended to check if the graduate engineer has
achieved a desired level of experience and professional competence.
Since there are not many opportunities readily available for the build-up of industrial
experience, graduate engineers are under great stress for competition for scarce changes
for industrial experience.

University Governance

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Governance Structures of S&T Universities in Korea


Korean S&T-centered universities largely follow the governance structure of American
universities with the President being both the titular head and CEO of the university. The
following governance structures from four Korean S&T-centered universities are all based
on strong presidential leadership and the board of trustee’s supervision in university
governance.
Table 21: Governance Structures of S&T Universities in Korea

KAIST

POSTECH

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GIST

DGIST

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UNIST

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Table 22: Governance Structures of Other S&T Universities

MIT

Swiss Federal Institute of Technology in Zurich (ETH Zurich)

Technical University of Munich (TUM)

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Hong Kong University of Science & Technology (HKUST)

Suggested Governance Structure for the New Institute


 The following figure depicts the F/S Team’s suggestion for the organizational structure of
the New Institute based on the governance structures of other prominent S&T-centered
universities in Korea and abroad.

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Figure 26: Suggestion for the Governance Structure for the New Institute

Board of Trustees
 Based on the basic law for the New Institute, the board of trustees will exercise full
responsibility for the New Institute and will be the ultimate authority for the New
Institute.
 The membership of the board will resolve important matters of the New Institute
including setting operational schedule, deciding financial policies, appointing and
dismissing major officials, and manipulating regulations and articles. It will also approve
degree programs recommended by the faculty.
 The total number of the BOT members will be up to 10 trustees. The composition of BOT
will be:
o President of the New Institute,
o Representative of MOEST,
o Representative of The National Treasury,
o Representative designated by a foreign funding agency if any,
o Two or three foreign members well acquainted with Kenya,

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o Remaining members recruited from academic or industrial societies in Kenya.

 The chairman of the board of trustees is elected from among the trustees (except the
President of the New Institute) by the board itself and approved by a relevant government
body (either MOEST or CUE). And the board members other than ex officio members are
chosen by the board itself and will be approved by the same government body approving
the board chairman. Although the chairman and the trustees from the government are
approved by the government, the board of trustees must be self-perpetuating and
independent from the government. Trustees are responsible for determining the major
policy of the New Institute and financial plans.

 Foreign trustees, if any, must understand the Kenya educational situation, economic and
industrial circumstance and the trend of technology.
 Three-year appointments of trustees are recommended with possibility of successive
appointments.

Auditor
 The Auditor of the New Institute is elected by the board of trustees with the approval of
MOEST. He or she may attend the board meeting and has the right to speak but not to vote.
The scope of the Auditor’s work covers:
o Auditing the assets of the New Institute,
o Inspecting the business performance of the institute
o Reporting to the board of trustees and MOEST about irregular acts of administration
o Stating the opinion to the board of trustees
 The auditor is elected by the board of trustees with the approval of MOEST. The term of
the auditor is recommended for two years and a successive term may be allowed.

President & Vice Presidents


 As the head of the university administration, the President of the New Institute is the chief
executive officer of the institute and responsible for the administration of all academic and
financial matters. He or she represents the New Institute for external activities and interfaces
with the government. The President is expected to be a person with academic respect,
administrative ability and spiritual devotion to Kenya.
 The President will be appointed by the BOT recommendation and approval of MOEST. He
or she will be an ex officio member of the board. It should be noted that the Presidency is
not simply an honorary position but the most demanding position. It is strongly
recommended to appoint the President among the respected scientists or engineers who has
thorough understanding of academic matters and administrative skill.

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 The scope of the President’s duty includes:


o Selecting faculty and administrative staff,
o Admitting students,
o Preparing the institute schedule and calendar,
o Recording all academic activities of faculty and students,
o Administrating research activities,
o Submitting all budgets and plans to the government,
o Maintaining public relations to industries and academia, and
o Operating the institute according to the budget plan and preparing the long term
development plans
 The President may appoint up to three Vice Presidents to assist academic affairs, research
activities and institutional operation. It is recommended to choose Vice Presidents from
senior faculty. Their responsibilities include:
o Admitting students
o Preparing schedule and the institute calendar
o Attend the board of trustees meeting to report the business matters and opinions in the
absence of the President
o Representing the President in the absence of the President.
 This proposed structure of top leadership of the New Institute is substantially different from
that of the current Kenyan universities shown below. A key difference is that the President
of the New Institute is both titular head and the chief executive of the university. The
purpose of this proposal for strong presidential leadership is to concentrate the power of
academic and administrative decisions on the President so that he or she could lead the
university in more autonomous and efficient ways.

Table 23: University Administrative Roles in Kenya

Title Roles
Chancellor  Shall be the titular head of the University and shall, in the name of
the University, confer degrees and grant diplomas, certificates and
other awards of the University;
 May from time to time, recommend to the Cabinet Secretary in the
case of a public university and the Board of Trustees in the case of
a private university, a visitation of the University;
 May from time to time give advice to the Council which then
Chancellor considers necessary for the betterment of the
University;
 Shall enjoy powers and privileges and perform such other
functions as may be provided in the Charter.

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Vice  Shall be the chief executive of the university;


Chancellor  Shall be the academic and administrative head of the university;
 Shall have the overall responsibility for the direction, organization,
administration and programmes of the university;
 Shall have such responsibilities and duties as may be provided for
in the Charter.
Source: Universities Act 2012

Advisory Council & External Advisory Committee


 The Advisory Council shall be instituted to assist the BOT and the President. Its members
will be chosen from academic and industrial circles both in Kenya and abroad. They will
advise the trustees of academic and financial matters to help the board making decisions on
strategic policies for the New Institute.
 The President should appoint an External Advisory Committee to review the policy and
activities of the New Institute. The members of the committee must be chosen from well-
known universities and major industry sectors, both in Kenya and abroad.
 The committee will advise the major issues in academic procedures and the technical
fields covered by the New Institute research activities. The committee will also help the
President and faculty in future planning.

Faculty Council
 The Faculty Council provides a direct channel for faculty to participate in the top
management. The Council is composed of Vice Presidents and department chairpersons
from administrative staff and several tenured Professors and Associate Professors elected
by the faculty. The Council must meet regularly or by the request of Council itself or the
President. The chairperson will be chosen among the council members elected by the
faculty. The Council may operate subcommittee to handle specific matters.

 The Council’s roles include: review of the long term plan of the institute, setting up or
closing a department or academic organization, modification of the institute decrees or
articles, and important issues suggested by the majority of the council or the President.

Academic Organizations
 (Academic Programs) Each academic program will have a chairperson in charge of handling
all academic and administrational matters within the program. The President appoints
chairpersons among tenured faculty members of each program. The chairperson may
operate several committees for issues such as selection of new students, dissertation review,
curriculum change, and new faculty recruitment.

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 (Academic Affairs) The Office of Academic Affairs handles matters related with courses
offered by the departments, degree programs of Master and and PhD, curriculum
management, academic records of students, and personnel matters of faculty. The Dean of
Academic Affairs, appointed by the President among the tenured professors, heads this
office. When the position of the Vice President for academic affairs is vacant, the dean of
academic affairs will be the acting Vice President for academic affairs.
 (Student Affairs) The Office of Student Affairs handles matters related with: scholarship,
awards and punishment of Students, cultural activities, campus life, and employment for
graduating students. The Dean of Student Affairs, appointed by the President among the
tenured professors, heads this office.
 (Research Affairs) The Office of Research Affairs handles matters related with research
contracts with government and industry, management of research funds, and patents. The
Dean of Research Affairs, appointed by the President among the tenured professors, heads
this office. When the position of the Vice President for research and industries is vacant, the
Dean of Research Affairs becomes the acting Vice President for Research and Industries.
The Dean of Research affairs should set up an incentive system for those faculty members
pursuing research projects, regardless of basic or applied. One of the incentives would be
lowering teaching load for the primary investigator of a large-scale research project.
 (Admissions) The Office of Admissions handles matters related with the recruitment and
selection of new students. The Dean of Admissions, appointed by the President among the
tenured professors, heads this office.
 (General Affairs) The Office of General Affairs handles matters related with salary and
welfare, personnel matters of staff, and campus maintenance. The Head Officer of this
office is appointed by the President among the senior staff.
 (Finance) The Office of Finance handles the budget, accounting, and property management.
The Head Officer of this office is appointed by the President among the senior staff.
 (International Affairs) The International Office handles the matters on the international
exchange of faculty and students, and international events and ceremonies. The Head
Officer of this office is appointed by the President among the tenured professors.
 (Industrial Collaboration) The Office of Industrial Cooperation handles the matters of
academia-Industry joint research, academia-Industry research forum, and the internship
programs for students. The Head Officer of this office is appointed by the President among
the senior staff.
 (Common E/F Office) In order to avoid duplicate expenditure of budget, expensive
laboratory equipment and tools must be shared by all departments and maintained by the
center for common equipment.
 (Research Centers) the New Institute may establish research centers to give administrational
support to research project teams of faculty members. The Vice President for Academic
Affairs is in charge of the organization and overall management of the research centers. The

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research centers may hire post-doc researchers and staffs within the available budget of the
project funds.
 (Library) The library of the New Institute must provide books, periodicals, reports and
newspapers for faculty members, students and staff. It must join consortiums of university
libraries so that all members of the New Institute have access to materials that are not
available in campus.
 (Computing) Another main facility for all campus is the computer center, providing
management of campus intranet/internet service, electronic mailing, education for computer
skills, and high speed computing power.

Academic Policy
 Among the many factors that determine the excellence of educational institutions and the
potential of future development, the level of newly admitted students is as important as
excellent academic/research performance after admission.
 It is a fundamental factor determining the level of education and educational
achievements.

Degree Requirements
 The New Institute is an institute offering academic degrees of Master and Ph.D. in science
and engineering fields. As it will eventually have both the Master and Ph.D. programs, it is
recommended that it postpone the establishment of its Ph.D. program, until the first
graduation of Master program students.
 Requirements for the master degree are: (i) 33 credits or more including 21 credits of
course work plus research credits and, if any, additional requirements of individual
departments, and (ii) successful submission of the Master Thesis.
 Requirement for the PhD degree are: (i) 60 credits or more including 30 credits of course
work plus 30 credits of research credit and, if any, additional requirements of individual
departments, and (ii) successful submission of the Ph.D. Thesis.

Admission Policy
 The quality of admitted students in the first three years is an important factor determining
the perception (brand value) of the newly established school. And considering so much
effort needed to change an established perception, the initial admission policy is important
above all. The importance of admission policy is more emphasized particularly when the
school aims to be the best graduate school in the country and further more support gifted
students around the country as the best engineering university in East Africa like the New
Institute.

 There can be ways to select or combine the methods of admission according to the
circumstances; most important consideration should focus on emphasizing the fairness and
transparency of the admission. It is important to build recognition starting from the

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beginning that admission is very competitive, and graduation is also difficult because of the
intensive education. Particularly for students from other countries in the East Africa, effort
should be made not to have any disadvantages compared to Kenyan students such as
assigning quota for each country. This will be an important point for the New Institute to
become the best educational institute in East Africa, and further more in the whole of Africa.

Admission Process
 (Timeline) The New Institute should also start admission ahead of other universities in
Kenya and East Africa so that top applicants can first consider applying to the New Institute.
 (Method of Screening) While the determination of the screening method for the New
Institute resides in the Office of Admissions, the following methods are generally
recommended:
o Document review: Applicants are selected for written examination and interviews
based on the level of university in undergraduate program and grades from
undergraduate program.
o Written exam and oral interview in major: The written exam and oral interview are
conducted to check the undergraduate level of knowledge (3 to 4 courses in the major
field) by each program. The exam and interview may be conducted simultaneously or
sequentially. In case that they are sequentially conducted, the number of interviewees
be at least twice the size of final selected students. Contents of the written exam
should reflect core major courses that can be applied in common to all other East
African and Kenyan applicants. The overall direction of the exam should be notified
to universities and applicants sufficiently before the test. This will allow the New
Institute to lead the direction of curriculum in Kenya and other East African
universities.

Student Benefits and Status


 The New Institute students will be provided with full scholarship and reasonable living
expenses. The New Institute students will also be provided with the dormitory. Both
residence and meal are recommended to be offered for free.
 The New Institute students have the chances for Research Assistantship (RA) and Teaching
Assistantship (TA) based on the level of academic achievement. The New Institute students
will also have the chance to study in Korea KAIST based on the level of academic
achievement.
 The time of study at the New Institute will be considered as equivalent to the requirement
of three-year industry experience for the professional engineer status.

Faculty

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 (Composition & Duty) The faculty would be composed primarily of Professors, Associate
Professors, and Assistant Professors. It will also include visiting professors, adjunct
professors, lecturers as part-time or full-time faculty. Visiting professorships are suitable
for foreign scholars to serve at the institute for limited periods on a temporary basis. Adjunct
professorships are useful to utilize the qualified scientists or engineers from the industries.
All full-time faculty members are expected to give lectures and carry out research in their
fields of expertise, simultaneously. At least two thirds of the credit courses must be taught
by full-time faculty members to maintain the quality of the lectures and to guide students
with consistency.
 (Promotion & Tenure) To achieve globally compatible faculty level, the New Institute
should adopt reasonable promotion criteria and a higher salary standard than other
universities in Kenya. Full-time professors and associate professors are recommended to
have tenure. The tenure policy should be carefully examined and established to ensure the
excellence of faculty. Among the full-time faculty members, the tenured group that consists
of all professors and some associate professors should not exceed 50%. The tenure
screening procedure should be a true merit system based on academic excellence and
research achievement. Those who fail to be tenured have to leave the New Institute but will
spread to other academic institutions or industry to have opportunities to apply what they
have acquired at the New Institute. Faculty members hired without tenure must go through
the screening procedure for tenure within seven or eight years of their first appointment.
The promotion & tenure policy should be examined to also guarantee the stability of job
security and sufficient faculty turnover to maintain high quality.
 (Utilization of Industry Experts) Open faculty positions to experts in industry, either full-
time or part-time. By providing teaching chances to the industry personnel, the New
Institute can promote interaction with other research organizations and universities. Some
experts may be appointed as full-time, or even as tenure-track, faculty members, as visiting
professors or adjunct professors of appropriate ranks. Visiting professors stay full-time for
period ranging from several months to a couple of years. Adjunct professors are part-time,
commuting from their work to campus according their weekly lecture schedule. It is
desirable for individual academic programs to have faculty members from industry as well
as experts of research institutes.
 (Collaboration with KAIST) At the initial stage some current and retired faculty members
from Korea may work for the New Institute while Kenyan faculty members will take over
progressively. Visiting faculty members invited from foreign countries may be counted as
full-time members regarding this matter. It will thus be advantageous to sign Memorandum
of Understanding (MoU) between the Governments of Kenya and Korea, and also MoU
between the New Institute and Korea KAIST.
 (Excellence) It is recommended that the full-time faculty members to teach no more than 6
credit hours per week in average in order to allocate the rest of their time mainly for the
preparation of lectures and research work. The teaching loads of the part-time members will
vary from 3 to 9 credit hours per week according to their contracts. It is a duty of the dean
of academic affairs to settle with department chairpersons in sharing teaching loads of such
courses.

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 (Recruitment & Retention) Screening procedure for faculty recruitment should include peer
reviews of the academic communities, domestic and international. The faculty position
should not be limited to only Kenyans. Candidates from Asia, Europe, and the US as well
as outstanding doctors from East African countries should be able to apply for the position,
and the policy that strongly encourages this idea should be implemented. It is recommended
that in the initial phase, the candidates of tenured faculty are recruited mostly from Kenyan
scholars abroad.

 (Incentives) The New Institute should provide relatively better treatment to faculty
members so that Kenyan PhDs living in developed countries would favor the position over
other opportunities. It should provide excellent work and living environment, competitive
salary, and research funds to attract great faculty members. This includes faculty housing
for faculty members and their dependents so that they can focus on both education and
research without being concerned of loving conditions. The work environment shall
encourage in-depth discussion and creative thinking, while appropriate research funds shall
be provided at least at the initial stage.

Special Note on the Recruitment of Top-rate Faculty and Students


 Recruitment of best talents is key to the successful operation of the New Institute. Since the
higher education sector is becoming increasingly competitive in its race for best talents both
in Kenya and abroad, it is important to build a well-designed incentive mechanism to attract
top talents as faculty and students of the New Institute.
 Faculty Recruitment
Competitive salaries are one of the most basic incentives to attract highly qualified
people into the faculty. The New Institute should be able to offer highly competitive
salaries for its faculty of all ranks. Over the span of the five years, the average faculty
salaries of Kenyan public universities have doubled as shown in Chapter 8, now
reaching about USD 32,000. The proposed average salary for the New Institute, USD
47,500, can then be considered as the lower minimum.
Another element of the incentive scheme for faculty is the start-up package. This is of
great use particularly for faculty members of S&T disciplines, as in these disciplines
professors have to set up their own science and engineering labs for both research and
education. Of the very functions of the endowment fund is to support the new faculty
with start-up packages.
In addition to direct pecuniary incentives such as the competitive salaries and start-up
packages, non-pecuniary incentives such as opportunities for collaborating and
networking with advanced research and educational institutes can also be considered.
 Student Recruitment
As with faculty, various incentives need to be in place to attract top-notch students to
the New Institute in Kenya and abroad. The first and foremost incentive is financial
support, which can take various forms such as tuition waiver, stipends, or scholarships.

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As for non-pecuniary incentives, one of the potential incentives that was intensively
discussed with the Engineers’ Board of Kenya (EBK) is to consider the years of
education at the New Institute as equivalent to the industry experience for graduate
engineers.
EBK is a statutory agency established by the Engineers Act 2011 with the
overall mandate of developing and regulating engineering education and
practice in Kenya. It publishes the registrars for three ranks of engineers –
graduate engineers, professional engineers, and consulting engineers. Graduate
engineers coming out of undergraduate programs cannot practice, while the
other two categories are practicing engineers.
Three-year industrial experience is required before taking a licensing exam to
become a professional engineer. It is estimated that Kenya has generated about
15,000 engineers since independence. Currently there are about 7,600 graduate
engineers, 2,000 professional engineers, and 360 consulting engineers.
If the length of education at the New Institute is considered as part of the
industry experience requirement, it will offer a strong incentive for Kenyan
college students majoring in engineering to choose the New Institute for a
graduate study, as it would save both time and money for them to launch
practice.

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Chapter 5. Academic Programs

Analytical Approaches
 As it is an inherently long-term task to build a new higher education institution, the
institution building process must be phased into multiple stages. One of the most
important tasks in the early phase of a new educational institution is to identify initial
academic programs to start with.
 The F/S Team relied on multiple approaches to identify strategic fields of study for initial
academic programs to be set up at the New Institute. The following table summarizes
these approaches in terms of the key features and the results.

Table 24: Summary of Analytical Approaches and Program Selection Results

Approach Key Features Results


Qualitative  Groups STEEP criteria  Core (8 fields)
Approach to two types – Foundation Building
academic and Information Science & Computer
industrial. Engineering,
 Analyzes key public Electrical Engineering,
documents envisioning Mechanical Engineering,
the future of Kenya – Civil Engineering
Vision 2030 & KAM’s Responding to Social Needs
Sectoral Overview. Environmental Engineering,
Bio-medical Engineering
Responding to Industrial Needs
Chemical Engineering
Materials Engineering
 Optional (3 fields)
Industrial Engineering
Management Science & Engineering
Policy Studies
Quantitative  Applies STEEP criteria  Core (3 fields)
Approach to multiple indicators Information Science & Computer
 Utilizes the weights Engineering
derived from the AHP Electrical Engineering
analysis. Mechanical Engineering
 Optional (5 fields)
Biomedical Engineering,
Chemical & Environmental
Engineering,
Agricultural (or Biological Systems)
Engineering,

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Materials Science & Engineering,


Science Policy & Technology
Management
GAP  Analyzes gaps between  Mechanical & Production
Approach the demand and supply Engineering
of engineers  Civil & Structural Engineering
 Electrical & Electronics Engineering
 Agricultural & Biosystem
Engineering
 Chemical & Process Engineering

Trade-offs in Program Selection


 The choice of initial programs for research and education depends on the specific criteria
and considerations for selection among potential areas of study. These criteria and
considerations often dictate different choices, however, due to the trade-offs between
current vs. future demands as well as those between economic and non-economic values.

 (Current vs. Future Needs/Demands) One of the trade-offs in initial program choice is
concerned with the question, how to balance the current and future needs and demands. This
is because the areas of study useful to meet current demands are not necessarily those ones
effective to prepare for future needs. Since Kenya has a predominantly agricultural
economy, fields of study relevant to the current economic demands would be mostly those
related to agricultural research. On the other hand, the long-term goal of transforming
Kenya into a middle-income country necessitates the consideration of fields of study that
may not be directly relevant to the current industrial make-up.

 (Economic vs. Non-Economic Values) Another trade-off in initial program choice lies in
the balance between economic and non-economic considerations. While Kenya Vision 2030
is typically associated with the goal of becoming a middle-income country by 2030, it
should be reminded that two of the three pillars of Kenya Vision 2030 covers the non-
economic areas – social and political. In light of the well-known trade-offs between growth
and environment or between growth and redistribution, targeting only those program areas
seeking to contribute to economic growth may risk social equity and political cohesion and
thus undermine the basis of popular support for S&T in society.

STEEP Framework and Selection Criteria


 The F/S Team relied on the STEEP framework, short for the “Social, Technological,
Economic, Environmental, and Political” framework, to derive selection criteria for initial
program choice. STEEP is one of the most widely used methods of forecasting future
environments in policy and business decision-making (Rescher 1997). Since identifying
strategic areas or fields of study is essentially the task of future forecasting, the STEEP
framework is utilized to classify criteria for program selection.

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 General considerations for each of the five dimensions of the STEEP framework are listed
in the following table, with the modifications to reflect the nature of factors relevant to
academic field or department selection.

Table 25: STEEP Framework for Program Selection

STEEP Criteria Description


Social Relevance Factors related to meeting various social needs and demands (e.g.,
demographics, public health, inequality, lifestyles)
Technological Upgrading Factors related to the enhancement of the quantity and quality of
academic research and technological development (e.g., publications,
patenting activities)
Economic Utility Factors related to long-term industrial growth and economic
development (e.g., industrial profile, sectoral growth rates, job market
conditions)
Environmental Constraint Factors related to material and nonmaterial constraints from the
external environment surrounding the New Institute (e.g., regulations,
cultural traits, competitions from other universities)
Political Constraint Factors related to political and legal environments (e.g., endorsement
of top political leadership, national agenda, institutional constraints)

Qualitative Approach
Major Criteria
 The qualitative approach to selecting fields of study groups STEEP criteria into two:
academic (combining technological and educational criteria) and industrial (combining
sociopolitical and economic criteria).
Academic: Technological + Educational
Industrial: Social + Economic + Political
 This grouping is intentional: it is an attempt to see how the social-political-economic factors
(which are tied to the nation’s industrial development) affect and are affected by the
academic progress. As mentioned in Chapter 3, the main rationale for creating a new S&T-
oriented university in Kenya is predicated upon the assumption (and hope) that the elite
school of academic excellence will stimulate and lead the industrial development of the
nation. Thus, the qualitative analysis in this chapter will focus on these two criteria.
 The overall assessment of the current status of national and industrial needs in Kenya has
been provided in Chapter 2. A number of diverse sources—national and international
reports, statistical data, and institutional information from website—have been exploited to
give a picture of where Kenya stands for its future development.
 This qualitative analysis relies on two public documents of the following:

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Vision 2030: This document provides a holistic and detailed plan for national
development. In other words, it best reflects the strengths and limitations of Kenya as
identified by its government, and the direction in which the government envisions the
future of Kenya to follow. It is also the most fitting document to support the role and
areas of contribution that S&T can make to Kenyan society.
Kenya Association of Manufacturers (KAM): Information provided by the Kenya
Association of Manufacturers will be utilized as a benchmark for understanding the
needs of the local manufacturers. By applying a similar methodology used to extracting
relevant fields of study from Vision 2030, this second part of the qualitative analysis
will provide insight on the actual needs of the industry and fields that will directly
contribute to the economy.

Analysis of National Needs


 (Process) Vision 2030 is an all-encompassing project, with its main objective set on
realizing Kenya into a stable, middle-income, industrialized country by the year 2030. It is
supplemented by Medium Term Plans (MTPs), which are shorter-term plans that cover and
guide development projects over the course of 5 years each.
Upon analyzing Vision 2030 documents, the F/S Team identified 11 major sectors that
the Government of Kenya stresses and invests in largely as part of the national
development policy. By aggregating the short-term and longer-term aims and flagships
projects listed under each sector, the team has identified key relevant science and
engineering fields of study.
The sectors are not necessarily categories that demand investment in S&T. However,
every single sector relies heavily on scientific and technological input. Current S&T
capacity in Kenya is not able to address and satisfy the sectoral aims and the needs of
the flagship projects, which is why Kenya has often relied on foreign investments and
aid, for example, often in the infrastructure sector and more recently, the building of
the Thika highway.
By extracting the fields of study that can contribute to Vision 2030 directly from the
sectors and flagship projects outlined in the documents, a list of departments are
recommended at the end of the subsection. Because these departments were seen as
those relevant to the Vision 2030, they can be regarded as a direct response to the needs
at the national level.
 (Results)

 Infrastructure Sector
Aims: A country firmly interconnected through a network of roads, railways, ports,
and airports
Needs: Expansion of railways and roads programs; Development of the Lamu-
Southern Sudan-Ethiopia Corridor

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Relevant Departments: Architectural Engineering, Civil Engineering, Electrical


Engineering, Environmental Engineering, Industrial Engineering, Material
Engineering, Mechanical Engineering.

 Energy
Aims: Generate more energy at lower cost and increase efficiency in energy
consumption; Implement strong regulatory framework, encourage private generators
of power, and separate generation from distribution; Generate new sources of energy
through exploitation of geothermal power, coal, renewable energy resources
Needs: Increase electricity availability by 5,500MW by 2017, Increase capacity of
diesel plants, hydropower, geothermal resources, wind power, coal, co-generation and
liquefied/compressed natural gas
Relevant Departments: Architectural Engineering, Civil Engineering, Electrical
Engineering, Industrial Engineering, Material Engineering, Mechanical Engineering,
Architecture, Environmental Engineering

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1. Academic: Technological + Educational Domain of Choice: Fields of Study (FOS)


Criteria
2. Industrial: Social + Economic + Political from Frascati Manual

Government Perspective: Industry Perspective:


Sources
Vision 2030 KAM Sectoral Overview
11 sectors 12 sectors
Infrastructure Construction and Mining
Energy Chemicals
ICT Energy, Electrical and Electronics
Industrialization Food, Beverages and Tobacco
Agriculture Leather Products and Footwear
Sectors Water/Sanitation Metals
Identified Health Motor Vehicles and Components
Tourism Paper and Paperboards
Environment Pharmaceuticals and Medical
Urbanization Equipment
Security Plastics and Rubber
Textiles and Apparel
Timber. Wood and Furniture

6 + 2 fields (alphabetical order) 5 + 2 fields (alphabetical order_


Civil Engineering Chemical Engineering
Environmental Engineering Environmental Engineering
Biomedical Engineering Electrical Engineering
Electrical Engineering Material Engineering
Fields Mechanical Engineering Mechanical Engineering
Identified Information Science +
+ Industrial Engineering
Industrial Engineering Management Science and
Management Science and Engineering Engineering

8 + 3 fields Nature of Contribution


Information Science and
Computer Engineering
Electrical Engineering Foundation Building
Mechanical Engineering
Civil Engineering
Environmental Engineering
Results Responding to Social Needs
Bio-medical Engineering
Chemical Engineering
Responding to Industrial Needs
Material Engineering
Industrial Engineering
Management Science and
Optimization and Planning
Engineering
Policy Studies

Figure 27: Flow of Qualitative Analysis for Program Selection

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 Information and Communication Technology


Aims: ICT for expanding human skills and introducing a system of producing,
distributing and utilizing information and knowledge; Improve quality and reliability
of government communication system by informatization of IDs and passports, public
examination results and candidate selection; Introduce online submission of tax returns,
Establish electronic reporting of corruption
Needs: Expansion of fiber optic networks to cover hospitals, schools and police
stations; Set up national ICT Centers of Excellence; Promote local ICT software
development; Apply ICT for agriculture and governance
Relevant Departments: Computer Engineering, Electrical Engineering, Information
Sciences, Management Science and Engineering, Civil Engineering
 Industrialization and Manufacturing
Aims: Invest in training, research and development for basic manufactured goods for
the larger eastern and central Africa; Restructuring local industries that use local raw
materials but lack a competitive edge (e.g. sugar and paper); Add value to imported
good that could be re-exported through last step of value addition (e.g. metals and
plastics)
Needs: Creation of SME parks, industrial parks; Development of industrial and
manufacturing clusters; Development of iron and steel mills; Establish the Kenya
Industrial Research and Development Institute (KIRDI)
Relevant Departments: Architectural Engineering, Civil Engineering, Environmental
Engineering, Industrial Engineering, Information Science and Computer Engineering,
Management Science and Engineering, Materials Engineering, Mechanical
Engineering, Architecture
 Agriculture
Aims: Adopt climate-smart agriculture such as harnessing farm waste as source of
organic fertilizer and use bio-fertilizers that do not contribute to harmful emissions;
Use better weather forecasting technology and early warning systems; Grow resilient
food crops
Needs: Fertilizer cost reduction program; Establish Disease Free Zones
Relevant Departments: Agricultural Engineering, Biological Engineering, Chemical
Engineering, Biology, Chemistry, Environmental Engineering, Earth Sciences, Life
Sciences, Plant Sciences

 Water and Sanitation


Aims: Conserve water resources and start new ways of harvesting and using rain and
groundwater for both potable water and irrigation; Rehabilitate the hydro-
meteorological data-gathering network; Construct multi-purpose dams and canals

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Needs: Rehabilitation and protection of water towers; Water resources and


management program; Trans-boundary waters program; Urban and rural water supply
program; Irrigation and drainage infrastructure; Land reclamation
Relevant Departments: Architectural Engineering, Civil Engineering, Biological
Engineering, Environmental Engineering, Mechanical Engineering, Architecture,
Biology, Chemistry, Earth Sciences, Geological Sciences

 Health
Aims: Lower the incidence of HIV/AIDS, malaria and tuberculosis and lower infant
mortality; Provision of robust health networks and improve the quality of health service
delivery
Needs: National Flagship Projects: Establish e-Health hubs; Research in locally
derived natural health products; Modernize Kenyatta National Hospital; Modernize
Moi Teaching and Referral Hospital; Country-side scale up of community health high
impact interventions
Relevant Departments: Biological Engineering, Biomedical Engineering, Computer
Engineering, Industrial Engineering, Pharmacology
 Environment
Aims: Increase forest cover and lessen environment-related diseases; Lessen pollution
and improve waste management systems; Enhance disaster preparedness; Secure
wildlife corridors and migratory routes
Needs: Strengthen environmental governance; Waste management and pollution
control; Rehabilitation of urban rivers; Forest and wildlife conservation and
management
Relevant Departments: Environmental Engineering, Civil Engineering, Biological
Engineering, Biology, Earth Sciences, Geological Sciences, Plant Sciences

 Tourism
Aims: Increase tourism arrivals and earnings, and promote domestic tourism
Needs: Development of Lamu, Isiolo and Lake Turkana Resort cities; Development of
coastal beach ecosystem management; Premium and under-used parks initiatives; Eden
Cradle of Mankind Project
Relevant Departments: Architectural Engineering, Civil Engineering, Environmental
Engineering, Management Science and Engineering, Architecture

 Land Reform, Urbanization and Housing


Aims: Facilitate process of land administration, computerization of land registries, and
establishment of spatial data infrastructure to track land-use patterns
Needs: Implementation of strategic development and investment plans in six
metropolitan regions; Research in appropriate building technology

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Relevant Departments: Architectural Engineering, Civil Engineering, Environmental


Engineering, Management Science and Engineering, Architecture, Zoological Science

 Security
Aims: Improve the practice of community policing; Adopting ICT in crime detection
and prevention
Needs: Forensic laboratory; Installation of CCTV cameras in major cities; Establish
national security data center
Relevant Departments: Architectural Engineering, Biological Engineering, Civil
Engineering, Computer Engineering, Electrical Engineering, Information Sciences

 (Suggestions) The departments that have high relevance to the objectives and flagship
projects of each sector of Vision 2030 were identified as above, and based on the frequency
at which each department was seen to be relevant, the following list of departments were
drawn. In other words, the following 6 departments are those that have the highest resonance
to Kenya’s national development policy:
Civil Engineering (includes architecture and architectural engineering)/ Environmental
Engineering/ Biomedical Engineering (includes biological sciences, biotechnology,
and pharmacology)/ Electrical Engineering/ Mechanical Engineering (includes Power
Energy)/ Information Sciences and Computer Engineering
In addition to these 6 departments, there are 2 departments that would benefit the
national STI system in the long run, but were not part of the 33 departments or the
Frascati Manual. These departments deal with a wide range of systems and sectors, and
highly value optimization of operation. In this vein, these departments will become
important assets to industry and manufacturing. In other words, the following 2
departments are of less urgency to the attainment of national development goals, but
will be required in attaining greater efficiency and productivity in the future: Industrial
Engineering/ Management Science and Engineering

Analysis of Industrial Needs


 (Process) In order to assess the needs in the industrial sector and the role that S&T could
play in promoting specifically the economy, it is important to consider the views of the
industrial and manufacturing stakeholders as well. To do this, the F/S Team examined the
12 sectors provided by KAM. The same method for analyzing the aims and flagship projects
of Vision 2030 was employed for analyzing the KAM data, and for suggesting the list of
departments.
 (Results)

 Building, Construction, and Mining Sector

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Current State: Building and construction industry is well equipped and flourishing in
Kenya, and the industry is on an upward trend; The Kenya Urban Transport
Infrastructure Program has also contributed to this trend with its plans for re-
habilitation and reconstruction of roads and bridges; The industry’s contribution to
GDP was 4.4% in 2009, with a growth rate of 14.1%, and employed a total of 94,000
people
Needs: Mining industry comprises mainly of production of non-metals and gemstones,
but makes negligible contribution to the economy
Relevant Departments: Architectural Engineering, Civil Engineering, Earth Sciences,
Electrical Engineering, Environmental Engineering, Geological Sciences, Materials
Engineering, Mechanical Engineering, Architecture

 Chemicals
Current State: Chemicals account for approximately 6% of GDP and exports have
been increasing in recent years; Chemicals industry includes products such as
pesticides, fertilizers, paints, plastics, refrigeration, home use, and so on; The chemical
and allied sectors employ approximately 12,000 people (5% of manufacturing). Its
imports are valued at over Ksh 100 million and exports at Ksh 6 billion
Needs: The industry requires understanding of chemical profiles of where they are used
and how chemical waste must be managed and disposed of in an environmentally
responsible manner; Competition from cheaper imported products
Relevant Departments: Chemical Engineering, Chemistry, Environmental
Engineering

 Energy, Electrical and Electronics


Current State: A number of firms in the assembly, testing, repair and maintenance of
electronic goods are in operation and are rapidly increasing their scope of activities to
meet the growing demands of the industry; The industry employs around 100,000
people, including spillover from telecommunications; The products in this sector
include energy generators and a variety of electrical machinery and equipment, such as
mechanical appliances, sound recorders and reproducers, television, image recorder
Needs: Energy security is low meaning that the facilities and firms that produces
energy are mostly internationally owned; Private sector has not made major
investments; Energy distribution network remains weak; Emerging external issues that
affect members in this sector are the influx of counterfeit and substandard products;
The sector faces the challenge of getting highly skilled IT and engineering technical
people
Relevant Departments: Electrical Engineering, Mechanical Engineering, Civil
Engineering

 Food, Beverages and Tobacco

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Current State: These three industries are the largest component of manufacturing
industry, comprising of over 1,200 businesses, ranging from small family businesses
to multinational companies; It amounts to over 30% of total manufacturing production,
and provided over 350,000 jobs in 2013. 60% of food processers are SMEs
Needs: Inadequate supplies of raw materials pose threat to production; Raw material
handling costs are high which results in high production costs; Government is
considered to be slow in developing and implementing policies; Industry suffers from
traditional technology and skills that are now obsolete
Relevant Departments: Agriculture, Agricultural Engineering, Chemical
Engineering, Environmental Engineering, Plant Sciences

 Leather Products and Footwear


Current State: The country has in recent years produced over two million hides (cattle,
camel) and around four million skins (goats, sheep), and the government estimates that
value addition could more than double the current earnings to Ksh 9 billion; In 2010,
production of leather and footwear showed growth of 36.5%, driven by the production
of leather shoes, which shot up by 46.5 per cent in 2009. Kenya’s hides, skins and
leather industry contribute around 4% of the agricultural GDP and 1.5% of the
country’s overall GDP
Needs: Scarcity of rawhides and skins which does not allow many tanneries to operate
at their full capacity; Influx of counterfeit and second hand products pose unfair
competition
Relevant Departments: Chemical Engineering

 Metals
Current State: Kenya has a basic metal sector, producing a variety of downstream
products from local and imported steel scrap, steel billets and hot rolled coils. The
industry is heavily dependent on imported raw materials; A diversified network of
downstream industries have emerged, which include motor vehicle and auto-ancillary,
a range of fasteners, reinforcement bars for construction, furniture, agricultural tools,
kitchenware, drums and containers, wheelbarrows, structural and fabrication, electrical
panels, and supply of raw material to the informal sector; The country has a total of
258 registered steel and metal manufacturers who export an average 122,000 metric
tonnes of metal and steel products valued at over KSh 4 billion annually; It employs
over 20,000 people.
Needs: Most of the inputs are imported, leading to increased costs; Shortage of scrap
metal is a problem; Stiff competition from imports which tend to be cheaper poses a
threat to the industry; High infrastructural costs such as electricity or inadequate road
systems pose big problem.
Relevant Departments: Earth Sciences, Environmental Engineering, Geological
Sciences, Materials Engineering, Mechanical Engineering

 Motor Vehicles and Components

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Current State: Products such as tires, tubes, batteries, springs, radiators, brakes pads,
cables, rubber components and filters are produced locally while a number of firms
fabricate bodies for commercial vehicles; According to data from the three motor
vehicle assemblers, the number of locally assembled vehicles stood at 6,681 in 2007.
The economic contributions of the entire motor vehicle assembly and components
sector to the economy’s GDP have for a long time remained at an average of 0.2%;
Formal employment in the motor vehicle assembly sector stood at 2,813 in 2008.
Needs: Second hand vehicles pose stiff competition; Non-recognition of certificate of
origin under East African Rules of Origin; Small and informal sector businesses grossly
lack essential equipment and knowledge for manufacture of various motor vehicle
components
Relevant Departments: Electrical Engineering, Mechanical Engineering

 Paper and Paperboard


Current State: Paper and paperboard in Kenya is expected to grow by approximately
4.4% annually up to the year 2020; It is important to note that Kenya’s paper and
paperboard industry is one of the biggest in Africa and the most important among the
Common Market for East and Southern Africa States (COMESA); The sector employs
over 15,000 people in the paper and paper products and printing and publishing
industries with a turnover of KSh 15 billion.
Needs: Paper mills often pose threat to environments; Electricity cost is too high which
results in higher production costs; Due to worldwide economic downturn, EAC
regional market is shrinking.
Relevant Departments: Environmental Engineering, Material Engineering, Plant
Sciences

 Pharmaceuticals and Medical Equipment


Current State: Kenya is currently the largest producer of pharmaceutical products in
the Common Market for Eastern and Southern Africa (COMESA) region, supplying
about 50% of the region’s market; The country’s pharmaceutical and consumer health
market is estimated to be worth an estimated $160 million each year; The country is
highly reliant on medical devices produced abroad, resulting in a negative trade balance
of Ksh 3.75 billion. The sector employs approximately 4000 people.
Needs: Local pharmaceutical producers cannot, at present, participate in donor funded
procurement because of the technical standards laid down by donors; Influx of
counterfeit goods poses threat to domestic industries; Imported inputs are zero rated
while duty is payable on local inputs
Relevant Departments: Biomedical Engineering, Biological Engineering,
Biology/Life Sciences, Chemical Engineering, Electrical Engineering, Materials
Engineering, Mechanical Engineering, Pharmacology
 Plastics and Rubber

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Current State: The plastics industry in Kenya is well developed and produces goods
made of polyvinyl chloride (PVC), polythylene, polystyrene, and polypropylene; The
plastics and rubber sector registered a production turnover of Ksh 18.8 billion in 2004,
which was 5.6% of the production turnover of the manufacturing sector in Kenya;
Estimates show that the industry was worth Ksh 5.8 billion as at July 2007. The remits
to the government an average of Ksh 1.5 billion annually through direct and indirect
taxes, and rates; The sector employs over 9,000 people directly with an average wage
bill of approximately ksh 3 billion annually, and 40,000 people in directly
Needs: The industry is highly dependence on imported raw materials; Electricity cost
is high which results in higher cost of production; Because of the industry’s inherent
nature, environmental issues are always problematic in the development process
Relevant Departments: Chemical Engineering, Environmental Engineering, Material
Engineering

 Textiles and Apparel


Current State: The textile industry has made a sizeable contribution to income
generation in rural areas by providing a market for cotton; The cotton sub-sector also
has significant linkages manufacturers of soaps and detergents, animal feeds,
chemicals, fats and oils; Production of cardigans and toweling materials production
increased by 7.4 and 7.0 per cent respectively in 2009
Needs: High cost of electricity which is 35% of cost of fabric production; The influx
of cheap imports from Asia, which pose unfair competition to local producers; Sourcing
of raw material also poses a major problem to local producers because it results in
delays in the delivery of products to the markets
Relevant Departments: Chemical Engineering, Material Engineering

 Timber, Wood, and Furniture


Current State: The main products produced in this sector include poles, chip boards
and block boards, fiber boards, plywood, doors, hard boards, creosote transmission
poles, flooring tiles, particle boards, furniture (both office and domestic) and roof
trusses; The sector contributes about 5% of the country’s GDP and it is estimated that
over 14,000 are employed in this sector, with an additional of over 30,000 employed
indirectly. It is estimated that the whole sector contributes about Ksh 11 billion of
revenue to the government annually; Kenya exports various wood products to different
counties, mostly in Africa. The domestic market consumes about 60% of the sector’s
production while the export market takes up the remaining 40%.
Needs: Environmental degradation due to cutting down of trees and wastes from
production is a problem; There is no land available for private industries to plant and
harvest trees.
Relevant Departments: Environmental Engineering, Material Engineering, Plant
Sciences

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 (Suggestions) The departments that have high relevance to the descriptions of and
challenges outlined by KAM were identified as above, and based on the frequency at which
each department was seen to be relevant, the following list of departments were drawn. In
other words, the following 5 departments are those that have the highest resonance to the
sectors and challenges of the 12 major manufacturing sectors of Kenya:
Environmental Engineering (in addition to earth sciences and geological sciences)/
Chemical Engineering/ Mechanical Engineering/ Electrical Engineering/ Materials
Engineering
In addition to these 5 departments, the same 2 departments that were suggested in
addition also apply to the manufacturing sectors, if not more. These three departments
are highly industry- and manufacturing-oriented in nature, and education, research and
application of research results in these three departments will have significant effect on
industry and manufacturing: Industrial Engineering, Management Science and
Engineering

Combining the Two Results


 Upon extracting relevant fields from Vision 2030 aims and flagship projects, and
descriptions and limitations in the sectors provided by the Kenya Association of
Manufacturers, a total of 8 fields of study were identified as having high relevance to the
current state of development and needs of Kenyan society and industry, presented below in
alphabetical order:
Biomedical Engineering (in addition to biological sciences and biotechnology, and
pharmacology)/ Chemical Engineering/ Civil Engineering (in addition to architecture
and architectural engineering)/ Electrical Engineering/ Environmental Engineering (in
addition to Earth Sciences and Geological Sciences)/ Information science and
Computer engineering/ Materials Engineering/ Mechanical Engineering
 Two more fields regarded by the team as relevant to the issues raised by the Vision 2030
and KAM, but do not fall under the fields of study (FOS) as categorized by the Frascati
Manual of the OECD are:
Industrial Engineering/ Management Science and Engineering

 A fourth field of study that has strong implications for effective management and planning
of S&T at a national level is recommended by the F/S team in addition:
Policy studies: Policy studies is an interdisciplinary field that is not specific to a given
sector, but one that will be integral to effective coordination and evaluation of national
policies and various projects. Further justification and elaboration on possible
curriculum under a department of policy studies will be provided in the next chapter.

 A total of 8 fields of study with 3 optional considerations have been identified as having the
most relevance based on these three criteria. The analysis itself did not weigh any of the

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sectors or fields in order to avoid bias. However, informed judgment has been exercised to
divide the total 11 fields into different categories, referred here to as “nature of
contribution.”
Foundation-building FOS: Information Science and Computer Engineering/ Electrical
Engineering/ Mechanical Engineering/ Civil Engineering
FOS Responsive to Social Needs (less immediate economic returns): Environmental
Engineering/ Bio-medical Engineering
FOS Responsive to Industrial Needs (more immediate economic returns): Chemical
Engineering/ Material Engineering
Optional FOS (optimization, planning, and policies): Industrial Engineering/
Management Science and Engineering/ Science and Technology Policy

Quantitative Approach
5.3.3. Selection Criteria and Sub-Criteria
 The quantitative approach to academic program selection is essentially the work of
conversion of the STEEP criteria to proper indicators capturing each dimension. For
quantitative analysis, the STEEP criteria are further developed into sub-criteria as follows.

Program
Selection

Social Technological Economic Environmental Political


Relevance Upgrading Utility Constraints Support

EC1:
S1: Quality of T1: Academic EV1: Cultural P1: National
Industrial
Life Excellence Affinity Agenda
Contribution

T2: EC2: Job


S2: Public EV2: Field P2: Flagship
Technological Market
Health Redundancy Program
Excellence Demands

Figure 28: Program Selection Criteria and Sub-Criteria

 ”Social Relevance” is a question of whether the proposed program addresses social needs
and demands arising from various social conditions such as demography, health, poverty,
or lifestyle issues. This criterion is further divided into S1 (Quality of Life) and S2 (Public
Health) capturing the likelihood of the program to enhance the quality of life and improve
public health.

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 “Technological Upgrading” refers to the likelihood of a given program to contribute to


scientific and technical performance as reflected in two sub-criteria, T1 (Academic
Excellence) and T2 (Technological Excellence). Standard indicators for those sub-criteria
are the number of scientific publications and the number of patents.
 “Economic Utility” relates to economic concerns such as the likelihood of contribution to
long-term growth, industrial needs as well as workforce conditions. EC1 (Industrial
Contribution) captures how much a proposed field is going to contribute to modern
industrial growth. EC2 (Job Market Demands), takes into account the demands for
graduates with the skills provided by the proposed field.
 “Environmental Constraint” is concerned with the overall social, cultural, institutional
environments surrounding an academic institution. EV1 (Cultural Affinity) is the question
of whether a proposed department is generally aligned with the culture of Kenya and East
Africa. EV2 (Field Redundancy) checks whether a proposed department is already offered
in other universities so as to avoid the unnecessary duplication of programs and to locate
academic niches that are hard to be replicated by other competing institutions.

 “Political Support” relates to the question of political sustainability of the New Institute in
light of leadership agenda and long-term national plans. P1 (National Agenda) captures
the former as reflected in top-level government documents such as Vision 2030 and the
2010 New Constitution. P2 (Flagship Program) captures the long-term programs and
projects that the nation is embarking on as mentioned in various planning documents.

5.3.4. Analytical Hierarchical Process (AHP) Analysis


 Since the aforementioned criteria and sub-criteria differ by implications and impacts, the
F/S Team conducted the Analytical Hierarchical Process (AHP) analysis to assess the
absolute and relative importance of the selection criteria and sub-criteria. To this end, a
survey of expert and stakeholder selection criteria was performed in two waves. The first
wave targeted experts from the Kenyan diaspora whose list is available in Appendix B1.
The second wave was for experts and stakeholders residing in Kenya that took place
during the Sub-field Selection Workshop of the Complementary Trip.

 As shown in the following figures, there exists notable differences between domestic and
foreign respondents. Domestic respondents tended to consider political support and
environmental constraints more important, compared to those staying abroad. In contrast,
the latter were more supportive of economic utility and technological upgrading in relative
comparisons of selection criteria.

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4.93 4.80
5.00 4.60
4.40 4.40
4.50 3.90
4.00 3.60 3.53 3.60 3.73
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
Social Technological Economic Environmental Political

Domestic Abroad

Figure 29: Results for Absolute Importance of Program Selection Criteria

Technological over Environmental


Political over Social
Social over Environmental
Technological over Economic
Social over Economic
Technological over Social
Environmental over Economic
Social over Political
Political over Technological
Technological over Political
Economic over Social
Environmental over Technological
Social over Technological
Environmental over Social
Political over Environmental
Economic over Technological
Political over Economic
Environmental over Political
Economic over Political
Economic over Environmental
0 0.5 1 1.5 2 2.5 3 3.5

Domestic Abroad

Figure 30: Results for Relative Importance of Program Selection Criteria

Table 26: Differences in Views of Kenyan Experts & Stakeholders In and Outside of Kenya

Experts/Stakeholders Domestic Abroad (Domestic-


Abroad)/Abroad
Environmental over Technological 1.00 0.36 1.80
Political over Technological 1.58 0.57 1.77
Political over Economic 1.75 0.67 1.62

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Economic over Social 2.82 3.20 -0.12


Technological over Political 2.83 3.29 -0.14
Economic over Political 2.50 3.00 -0.17

Domain of Choice
 In order to apply a quantitative method for the choice of strategic areas of research and
education, it is necessary to draw a domain of choice. For this, the F/S Team relied on the
well-known international standard classification known as the Fields of Science &
Technology (FOS) classification of OECD’s Frascati Manual. It should be noted that
departments and fields of study are not exactly mapped to each other on a one-to-one basis.

Table 27: Domain of Choice for Strategic Fields of Study (OECD Frascati Manual FOS)

Departments Primary FOS Secondary FOS


Engineering (17 Departments)
Aeronautical &
Mechanical Engineering Electrical Engineering
Aerospace Engineering
Architectural Engineering Civil Engineering Mechanical Engineering
Biological Engineering Biological Sciences Industrial Biotechnology
Biomedical Engineering Medical Engineering Medical Biotechnology
Chemical Engineering Chemical Engineering Chemical Sciences
Civil Engineering Civil Engineering Mechanical Engineering
Computer & Information
Computer Engineering Electrical Engineering
Sciences
Design Engineering Civil Engineering Mechanical Engineering
Electrical Engineering Electrical Engineering Computer & Information Sciences
Environmental
Environmental Engineering Environmental Biotechnology
Engineering
Industrial Engineering Industrial Biotechnology Economics & Business
Computer & Information
Information Sciences Electrical Engineering
Sciences
Management Science &
Economics & Business Other Engineering & Technologies
Engineering
Manufacturing
Mechanical Engineering Materials Engineering
Engineering
Materials Engineering Materials Engineering Nano-technology
Mechanical Engineering Mechanical Engineering Physical Sciences
Nuclear Science &
Physical Sciences Chemical Engineering
Engineering
Natural Sciences (16 Departments)
Architecture Civil Engineering Environmental Engineering
Earth & Related Environmental
Archaeology History & Archaeology
Sciences

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Earth & Related Environmental


Astronomy Electrical Engineering
Sciences
Biology Biological Sciences Medical Biotechnology
Brain & Cognitive
Biological Sciences Medical Engineering
Sciences
Chemistry Chemical Sciences Chemical Engineering
Earth & Related Environmental
Earth Sciences Environmental Engineering
Sciences
Earth & Related Environmental
Geological Sciences Environmental Engineering
Sciences
Life Sciences Biological Sciences Medical Engineering
Mathematics Mathematics Physical Sciences
Pharmacology Basic Medicine Other Medical Sciences
Physics Physical Sciences Mathematics
Agriculture, Forestry, and
Plant Sciences Agricultural Biotechnology
Fisheries
Sports Science Health Sciences Other Medical Sciences
Statistics Mathematics Computer & Information Sciences
Zoological Science Animal and Dairy Science Veterinary Science

Results
 Due to the data limitation and complexity of analysis, the results from the quantitative
analysis should be regarded as preliminary rather than final. For the same reason, only the
results from the quantitative analysis is presented below. The details of the analytical
process are relegated to Appendix C.
 Core Departments (without order)
Information Science and Computer Engineering (or Computer Science and
Engineering): Largely deals with the software part of ICT; Has great potential for
Kenyan industry and society as computer science and engineering is at the center of
convergence with virtually any fields and areas.
Electrical Engineering: Deals with the hardware part of ICT; Relates to electronics and
control/systems engineering that are crucial for modern industrial development; Also
covers part of low-power low-voltage electric design. (Although high-power electrical
systems were included in Electrical Engineering, now almost all Departments of
Electrical Engineering around the world focus on electronics and low-power electric
systems.)
Mechanical Engineering: Deals with the design and maintenance of mechanical
systems as well as the production and operation machinery and tools; Also covers part
of electric power engineering (electricity generation and transmission equipment),

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which is expected to address Kenya’s need for efficient power distribution and energy
demands.
 Optional Departments (without order)
Biomedical Engineering: Combines Biomedical Engineering and a part of Medicine;
Focuses on digital health systems to support medical doctors and patients; Has great
potential to take advantage of Kenya’s strong position on international collaboration
for medical science.
Chemical and Environmental Engineering: Deals with the engineering of chemicals
and processes of converting them into valuable materials; Also includes technologies
for the management and control of environmental pollution and ecological degradation;
Can focus more traditional form of chemical engineering such as chemical plants to
meet industrial needs.
Agricultural Engineering (or Biological Systems Engineering): Combines ICT with
parts of agriculture, genomics, and other life sciences; Can take advantage of Kenya’s
strong position in agricultural science in the international community
Materials Science and Engineering: Deals with the discovery of new materials and the
design, synthesis, or structuring of various materials (minerals, bio-materials, magnetic
materials, etc.); May include nano-technology though it would require expensive
facilities.
Science Policy and Technology Management: Combines social sciences and
management; Is critical for the strategic planning of national programs in science,
technology, and innovation; Can be launched without much cost as it does not require
expensive equipment/facilities.

5.4. GAP Approach


 Another way to determine initial programs of study at the New Institute is to examine the
gaps in the demand and supply of highly skilled engineers. African Development Bank in
its Country Strategy Paper for Kenya has noted that “with an estimated gap of about
30,000 engineers, 90,000 technicians and 400,000 artisans, the shortage of mid-level
technicians and artisans is hampering the country’s economic growth prospects. The
Kenya Engineers Registration Board estimated the ratio of engineers, technicians and
artisans required by the country to achieve middle-income status at 1:12:60. However,
Kenya’s ratio was estimated at only 1:3:13” (AfDB 2014).

 The F/S Team utilized the recently completed report commissioned by the Engineers
Board of Kenya (EBK) that it obtained during the Complementary Trip. This report
contains the projections of demand and supply for 11 categories of skilled engineers at the
five-year intervals running between 2012 and 2030 (EBK 2014).
 Detailed information on this study is described below:

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(Data): The study is based on several surveys. The first survey covers six public
universities – University of Nairobi (UoN), Moi University, Egerton University, Jomo
Kenyatta University of Agriculture & Technology (JKUAT), Kenyatta University, and
University of East Africa Baraton). The first four universities offer engineering
programs accredited by EBK. The next surveys drew upon “purposive” samples for
government ministries, private sector companies, and state corporations/parastatals. It
sampled 9 government ministries, 30 organizations from the Kenya Association of
Manufacturers (KAM), and 16 out of 119 state corporations/parastatals employing
engineers.
(Questionnaire) The survey questionnaire for public universities was designed to obtain
detailed information about student enrollment and graduates, funding of engineering
programs, industry interactions, staffing and facilities requirements, problems and
future plans. In cases where future engineering manpower supply were not provided,
projections were made based on the 5% economic growth rate projections of the years
2012~2017 and 7.5% of the years of 2018~2030.
(Interviews) Interviews were also conducted with the Deans of engineering faculties to
obtain their opinions and views regarding engineering education.

Table 28: Total Demand and Supply of Engineers in Kenya (2012~2030, by Discipline)

2012 2017 2022 2027 2030 Total


Total Supply of Engineers
Electrical & Electronics 1183 1244 1336 1436 1499 6698
Mechanical & Production 604 634 683 734 767 3422
Civil & Structural 691 726 781 840 878 3916
Agricultural 321 337 362 389 406 1815
Textile 81 85 92 99 104 461
Mechatronics 148 156 168 180 188 840
Chemical & Process 229 240 258 277 290 1294
Computer & Software 318 334 359 386 404 1801
Soil, Water & Environment 344 362 389 418 437 1950
Instrumentation & Control 167 176 189 204 212 948
Energy Engineering 77 81 86 93 97 434
GEGIS 259 525 564 606 634 2588
Biomechanical 100 105 113 121 127 566
Mining & Mineral Processing 20 21 23 25 26 115
Manufacturing 251 263 284 306 320 1424
Total Demand for Engineers
Electrical & Electronics 1501 1584 1903 2348 2331 9667
Mechanical & Production 1488 1395 1606 1845 2075 8409
Civil & Structural 985 1062 1287 1511 1992 6837
Agricultural 508 741 928 1085 1187 4449
Textile 16 22 49 53 54 194
Mechatronics 15 18 20 22 27 102
Chemical & Process 326 320 327 360 370 1703
Computer & Software 6 6 26 26 26 90

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Soil, Water & Environment 33 37 45 60 61 236


Instrumentation & Control 38 35 37 63 71 244
Energy Engineering 26 26 26 38 51 167
Marine Engineers 1 46 84 178 258 567
Transport Engineer 5 9 15 17 46
Project & Design 9 11 11 11 11 53
Refrigeration Engineer 7 7 14 28 12 68
Paper Engineer 74 74 107 160 186 601
Aeronautical Engineer 13 18 22 29 36 118
Terminal Engineer 37 45 50 56 188
Source: EBK (2014)

 The F/S Team calculated the demand-supply gaps as in the following two tables. These
gaps are also expressed in relative terms – as a proportion of the supply in case of
engineers with supply shortage and as a proportion of the demand in case of engineers
with excess demand.

 Five categories of engineers are projected to experience supply shortage – Mechanical &
Production Engineers, Civil & Structural Engineers, Electrical & Electronics Engineers,
Agricultural & Biosystem Engineers, Chemical & Process Engineers (in the order of
absolute magnitude). In relative terms, Agricultural & Biosystem Engineers and
Mechanical & Production Engineers turn out to be the categories to experience the largest
supply shortage.

 Among the engineering categories projected to have excess demand, Computer &
Software Engineering stands out because it does not sound intuitive given its high-tech
image and future orientation. The EBK report also finds this result perplexing, adding the
following comment. “Projection for the supply of computer and software engineers appear
to outstrip that of demand.

 However, this does not mean that the industry does not require computer & software
engineers, but rather that the graduates are employed under different names which was not
captured by the name ‘engineer’ by the sample size. Also, with vision 2030 flagship
projects such as the Konza Techno City, and the Kenyan economy increasingly becoming
digital, demand for computer and software engineers is likely to increase substantially
(EBK 2014, p.43).”

 In summary, strategic fields that the New Institute needs to target based on the gap
analysis turn out to be the following six: Mechanical & Production Engineering, Electrical
& Electronics Engineering, Computer & Software Engineering, Civil & Structural
Engineering, Chemical & Process Engineering, and Agricultural & Biosystem
Engineering.
 However, an important caveat is in order. As the survey is based on projections, the
accuracy and precision of this demand-supply gap analysis are not fully guaranteed. Some
unforeseen social events and other macroeconomic trends may render the current
projections to be off the mark. It is thus important to use the current projections as
referential information and update them in proper manners when such needs arise.

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Table 29: Fields of Engineering with Supply Shortage

Year 2012 2017 2022 2027 2030


Electrical & Electronics Engineers
Supply 1183 1244 1336 1435 1499
Demand 1501 1584 1903 2348 2331
Gap -318 -340 -567 -913 -832
Gap/Supply* -26.9% -27.3% -42.4% -63.6% -55.5%
Mechanical & Production Engineers
Supply 604 633 683 734 767
Demand 1488 1395 1606 1845 2075
Gap -884 -762 -923 -1111 -1308
Gap/Supply -146.4% -120.4% -135.1% -151.4% -170.5%
Civil & Structural Engineers
Supply 691 727 781 841 877
Demand 985 1062 1287 1511 1992
Gap -294 -335 -506 -670 -1115
Gap/Supply -42.5% -46.1% -64.8% -79.7% -127.1%
Agricultural & Biosystem Engineers
Supply 321 336 362 390 407
Demand 508 741 928 1085 1187
Gap -187 -405 -566 -695 -780
Gap/Supply -58.3% -120.5% -156.4% -178.2% -191.6%
Chemical & Process Engineers
Supply 229 240 258 277 290
Demand 326 320 327 360 370
Gap -97 -80 -69 -83 -80
Gap/Supply -42.4% -33.3% -26.7% -30.0% -27.6%
* Gap between supply and demand expressed as percentage of supply, Source: EBK (2014)

Table 30: Fields of Engineering with Excess Supply

Year 2012 2017 2022 2027 2030


Textile Engineers
Supply 81 85 92 99 104
Demand 16 22 49 53 54
Gap 65 63 43 46 50
Gap/Demand* 406.3% 286.4% 87.8% 86.8% 92.6%
Mechatronics Engineers
Supply 148 156 168 180 188
Demand 15 15 20 22 27
Gap 133 141 148 158 161
Gap/Demand 886.7% 940.0% 740.0% 718.2% 596.3%
Computer & Software Engineers

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Supply 318 334 350 367 378


Demand 6 6 26 26 26
Gap 312 328 324 341 352
Gap/Demand 5200.0% 5466.7% 1246.2% 1311.5% 1353.8%
Soil, Water & Environment Engineers
Supply 344 362 389 419 437
Demand 33 37 45 60 61
Gap 311 325 344 359 376
Gap/Demand 942.4% 878.4% 764.4% 598.3% 616.4%
Instrumentation & Control Engineers
Supply 167 176 189 204 212
Demand 38 35 37 63 71
Gap 129 141 152 141 141
Gap/Demand 339.5% 402.9% 410.8% 223.8% 198.6%
Energy Engineers
Supply 77 81 86 93 97
Demand 26 26 26 38 57
Gap 51 55 60 55 40
Gap/Demand 196.2% 211.5% 230.8% 144.7% 70.2%
* Gap between supply and demand expressed as a percentage of demand, Source: EBK
(2014)

8,821
9,000 7,882
8,000
6,546 6,389
7,000 6,114
5,687
6,000 5,2895,444
4,7935,046
5,000
4,000
3,000
2,000
1,000
0
2012 2017 2022 2017 2030

Supply Demand

Figure 31: Total Demand and Supply of Engineers in Kenya (All Engineers)

Stakeholders’ View
 The stakeholders of the Kenya Advanced Institute of S&T Project are comprised of
people from diverse sectors. At the Sub-Field Selection Workshop (July 2015, Nairobi),
the following comments were gathered.

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Table 31: Stakeholder View on Strategic Fields

Comments on Sub-Field Selection


Security within the region as this is likely to affect the attraction of highly qualified lecturers
and students
Technology transfer, commercialization of research findings, funding of university research and
development (sub-criterion for technological upgrading); foreign direct investments (sub-
criterion for economic utility)
Strengthening of technical education: workshops and laboratories.
Acceptability with the environment
1) Distribution of the population in terms of specialization, ie. Social science, pure/applied
science, ICT, engineering, etc. 2) The major employer: public service, agriculture, industry, etc.
3) Available resources (human/material/infrastructure) for various sectors.
Comments on the Kenya KAIST Project
It is a noble idea. The question would be (and is) how will it fit into the other universities
system of Kenya (over 40 public universities of science, technology and agriculture) and soon
to be proposed county universities.
This is a timely initiative that stands to benefit both Kenya and Korea as in the concept of 'pay-
it-forward'. Kenya can learn from Korea's best practices on how the model worked for them.
Location of the institute should be out of the city of Nairobi because of congestion.
The trend in Kenya has been to start up specialized institutions, which later focus wider due to
changing demands in some fields or competition for survival. KAIST should try to avoid taking
this direction. Will need a strong and stable financial backing.
Should as much as is possible focus on the needs of Kenya and the region (East Africa
community) to provide leadership on science, engineering and technology, but should also
establish a link with advanced technologies.
Kenya KAIST is a great initiative coming at the right time for Kenya. However, for Kenya
KAIST to have the impact, it should focus on the whole cycle of creating the right skills, right
research developments, ensure that there is support from the right industries and public sector to
have a complete cycles so as to increase the technology absorption in and export from Kenya.
A good idea to focus on engineering and ICT to help start and support big industries.
Industrialization is key to boost development.

 The following responses from the Ministry of Labor, Social Security and Services are also
worth heeding, as they contain the detailed reasons for the categories of skilled engineers
in demand.

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Table 32: Fields Likely to Generate Demand for Skilled Engineers

Engineering Field Sector of Reasons


Employment
(i) Increased outsourcing of road construction projects
(ii) Proposed construction of Lamu‐Port‐Southern Sudan‐
Ethiopia Transport (LAPSSET) Corridor
(iii) Proposed development of Mass transport transit systems in
1. Road Engineers Private/SOE
major cities in Kenya –the proposed rapid bus transport network
and the light railway transport system
(iv) Proposed development and implementation of a 50‐year
transport master plan
(i) Expanding aviation industry
(ii) Proposed construction of international airports at Lamu,
2. Aeronautical and
SOE Isiolo and Lokichoggio
Aviation Engineers
(iii) On‐going expansion of existing international airports (in
Nairobi and Kisumu)

(i) On‐going construction of Standard gauge railway


3. Railway Engineers SOE (ii) Proposed construction of mass transport light trains in major
cities
(i) Discovery of huge reservoir of underground water in Turkana
(ii) Water vessels: conventional and bulk cargo handling vessels
and equipment at three proposed berths in Lamu
4. Water Engineers Private/SOE (iii) Proposed development and maintenance of the Kenya
Coastline (construction of 7500 meters of sea wall to
improve movement and protect property in low lying areas)
(iv) Proposed development of mainland water transport
(i) Discovery of oil and gas in Turkana
(ii) Proposed construction of oil refinery in Lamu with capacity
of 120,000 barrels per day
5. Oil and Gas Mining
SOE (iii) Proposed construction of an oil terminal in the same location
Engineers
to facilitate tanker loading and offloading
(iv) Proposed construction of a pipeline for refined petroleum
products from Lamu‐Mombasa
6. Wind Energy (i) Government promotion of renewable energy
SOE
Engineers (ii) Unexploited wind energy potential
7. Hydro Energy (i) The country’s reliance on hydro power
Engineers SOE (ii) Several prioritized projects for implementation to increase
electricity installed capacity by 5,538 MW by 2017
8. Geothermal Energy (i) Existence of natural underground sources (hot steam) of
Engineers power in Naivasha
SOE
(ii) Government promotion of diversification of energy sources
(iii) Promotion of development of clean energy
9. Solar Energy New source of energy currently unexploited
Private
Engineers

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10. Biogas Engineers Private Renewable low cost of energy source


11. Mineral Mining Mineral resources remain largely unexploited
SOE
Engineers
12. ICT Engineers and High employment sector which is fast growing
Private
Innovators
13. Electrical and (i) Expanding ICT sector, related services, installations, control
Electronic Engineers Private/SOE rooms, maintenance, cyber security, information communications
security
14. Building and (i) Expansion of real estate sector
Construction (ii) Establishment of National Construction Authority (NCA)
Private
Engineers which is enforcing adherence to quality standards in the
construction sector
Source: Questionnaire Response from Ministry of Labor, Social Security and Services

Initial Programs and Phased Expansion


Initial Programs
 Based on the multifaceted analyses of the previous section as well as through the
negotiations and discussions with the Kenyan side (especially during the Third Field Trip
and the Complementary Trip), the F/S Team recommends the six fields as initial programs
to be set up at the New Institute. See Appendix A for the Third Field Trip Aide Memoire
for the Kenyan side’s agreement on the initial programs. They are proposed to be housed
into three faculties as follows.

Table 33: Initial Programs in Three Faculties

FACULTY PROGRAMS
I Comprised of three engineering programs that lay the groundwork for
engineering research and education:
1) Mechanical Engineering,
2) Electrical/Electronic Engineering
3) ICT Engineering

II Comprised of three engineering programs suited more to meeting current


socioeconomic demands:
1) Chemical Engineering
2) Civil Engineering
3) Agricultural Biotechnology

III Providing the education of basic sciences (math, physics, chemistry, and
biology) for the students of the other two faculties

Phased Expansion

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 The F/S Team recommends a gradual expansion of the New Institute over the span of ten
years with additional programs to be created as the school expands.
 The next set of academic programs to be built may be derived directly from the analysis of
Ch 5. These will be the four programs that remain unselected for the initial programs – (i)
Materials Science & Engineering, (ii) Environmental Engineering, (iii) Industrial
Engineering, and (iv) Science Policy & Technology Management.
 The brief descriptions of these four Phase II programs are provided below.
The Program of Materials Science and Engineering aims to to equip its students with
knowledge and laboratoty skills ranging from scientific basics to more complicated
applications in the fields of materials science amd engineering. To meet the current and
future needs of high-tech and bio industries, topics including nano materials, bio-
inspired materials, materials for energy-related technology, IT/display related
materials, electronic/magnetic materials, structural materials are a part of the
curriculum.
The Program of Environmental Engineering deals with study of the protection and
sustainability of environment. It deals with issues closely related to daily life of human,
such as water supply, wastewater, soil contamination, and sustainable management of
environmental resources.
The Program of Industrial Engineering intends to provide education for the analysis,
design, and control of large-scale complex systems consisting of people, material,
information, equipment, and money.
The Program of Science Policy & Technology Management studies social changes
made by science and technology aiming to make better public policy for science and
technology and to train business leaders in science and technology-related enterprises.

Table 34: Phase II Programs

Phase II Program Sample Courses


Materials Science &
 Mechanics of Materials
Engineering
 Structure and Properties of Engineering Alloys
 Introduction to Solid State Physics
 Material Design and Manufacturing Process
 Introduction to Ceramics
 Introduction to Biomaterials
 Semiconductor Processing
 Mechanical Behavior of Solids
 Statistical Thermodynamics in Materials System
 Phase Equilibria and Phase Diagrams
 Thin Film Processing
Environmental  Environmental Science and Engineering
Engineering  Water and Wastewater Engineering
 Hydrology
 Solid Waste Management & Soil Remediation

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 Experimental Vibration Engineering


 Sustainable Architectural Design
 Water Resources and Groundwater Engineering
 Environmental Chemistry
 Design of Underground Structures
 Sustainable Infrastructure Systems Engineering
 Environmental Design for Ubiquitous-Eco Spaces
Industrial Engineering  Production Management
 Logistics Management
 Project Management
 Inventory Management System
 Introduction to Human Engineering
 Operations Research
 Optimization Theory
 Manufacturing Process Innovation
 Service Engineering
 Product Lifecycle Management
Science Policy &
 Science and Technology Policy
Technology Management
 National Innovation System
 Science, Technology, and Society
 National R&D Policy
 ICT Policy
 Environmental Politics
 Energy Policy
 Bioethics
 Global Health Policy
 Entrepreneurship and Venture Business
 Innovation Strategy
 Patent Law and Management

School Size
 The F/S Team proposes the gradual buildup of school size as presented in the following
tables. It should be noted that to prepare the admission process of the first cohort of the
students, faculty and staff must recruited before the first phase.
 Pre-Phase & Phase I

Cumulative Year 0 Year 1 Year 2 Year 3 Year 4 Year 5


Admitted - 20 20 20 20 20
Progressed - - 20 20 20 20
Master Graduated - - - 20 20 20
Sub-
Students - 20 40 40 40 40
Total①
Admitted - - - 5 5 5
PhD Progressed - - - - 5 10
Graduated - - - - - -

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Sub-
- - - 5 10 15
Total②
①+② 0 20 40 45 50 55
Faculty ③ 4 4 6 8 10 10
Staff ④ 2 2 3 3 3 3
Total (①+②+③+④) 6 26 49 56 63 68

 Phase II

Cumulative Year 0 Year 1 Year 2 Year 3 Year 4


Admitted 30 30 30 30 30
Progressed 20 30 30 30 30
Master Graduated 20 20 30 30 30
Sub-
50 60 60 60 60
Total①
Students Admitted 10 10 10 10 10
Progressed 15 20 25 30 35
PhD Graduated - 5 5 5 10
Sub-
25 30 35 40 40
Total②
①+② 75 90 95 100 100
Faculty ③ 10 10 10 10 10
Staff ④ 3 3 3 3 3
Total (①+②+③+④) 88 103 108 113 113

 School Size for All Departments

Phase I (6 Depts) Phase II (10 Depts)

Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Existing 450 540 570 600 600

Students 0 120 240 270 300 330 New 80 160 180 200 220

Total ① 530 700 750 800 820

Existing 60 60 60 60 60

Faculty 24 24 36 48 60 76 New 16 24 32 40 40
(60+16)
Total ② 76 84 92 100 100

Staff 12 12 18 18 18 Existing 18 18 18 18 18

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26 New 8 12 12 12 12
(18+8)
Total ③ 26 30 30 30 30

Total 36 156 294 336 378 432 ①+②+③ 632 814 872 930 950

Curriculum
 The curriculum stipulates the basic knowledge and skills that need to be educated in each
academic program. The following description offers the description of each program with
the basic courses. The full list of courses and their descriptions are available in Appendix
D.

Mechanical Engineering
 The fundamental subjects of mechanical engineering usually include: Mathematics (in
particular, calculus, differential equations, and linear algebra)/ Basic physical sciences
(including physics and chemistry)/ Statics and dynamics/ Strength of materials and solid
mechanics/ Materials Engineering, Composites/ Thermodynamics, heat transfer, energy
conversion, and HVAC/ Fuels, combustion, Internal combustion engine/ Fluid mechanics
(including fluid statics and fluid dynamics)/ Mechanism and Machine design (including
kinematics and dynamics)/ Instrumentation and measurement/ Manufacturing engineering,
technology, or processes/ Vibration, control theory and control engineering/ Hydraulics,
and pneumatics/ Mechatronics and robotics/ Engineering design and product design/
Drafting, computer-aided design (CAD) and computer-aided manufacturing (CAM).
 Mechanical engineers are also expected to understand and be able to apply basic concepts
from chemistry, physics, chemical engineering, civil engineering, and electrical
engineering. All mechanical engineering programs include multiple semesters of
mathematical classes including calculus, and advanced mathematical concepts including
differential equations, partial differential equations, linear algebra, abstract algebra, and
differential geometry, among others.
 In addition to the core mechanical engineering curriculum, many mechanical engineering
programs offer more specialized programs and classes, such as control systems, robotics,
transport and logistics, cryogenics, fuel technology, automotive engineering, biomechanics,
vibration, optics and others, if a separate department does not exist for these subjects.
 Most mechanical engineering programs also require varying amounts of research or
community projects to gain practical problem-solving experience. In the United States it is
common for mechanical engineering students to complete one or more internships while
studying, though this is not typically mandated by the university. Cooperative education is
another option. Future work skills research puts demand on study components that feed
student's creativity and innovation.

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Electrical & Electronics Engineering


 Electrical engineering is a field of engineering that generally deals with the study and
application of electricity, electronics, and electromagnetism. This field first became an
identifiable occupation in the latter half of the 19th century after commercialization of the
electric telegraph, the telephone, and electric power distribution and use. Subsequently,
broadcasting and recording media made electronics part of daily life. The invention of the
transistor, and later the integrated circuit, brought down the cost of electronics to the point
where they can be used in almost any household object.
 Electrical engineering has now subdivided into a wide range of subfields including
electronics, digital computers, power engineering, telecommunications, control systems,
radio-frequency engineering, signal processing, instrumentation, and microelectronics. The
subject of electronic engineering is often treated as its own subfield but it intersects with all
the other subfields, including the power electronics of power engineering.
 Electrical engineers work in a very wide range of industries and the skills required are
likewise variable. These range from basic circuit theory to the management skills required
of a project manager. The tools and equipment that an individual engineer may need are
similarly variable, ranging from a simple voltmeter to a top end analyzer to sophisticated
design and manufacturing software.
 Electronics engineering, or electronic engineering, is an engineering discipline which
utilizes non-linear and active electrical components (such as electron tubes, and
semiconductor devices, especially transistors, diodes and integrated circuits) to design
electronic circuits, devices and systems. The discipline typically also designs passive
electrical components, usually based on printed circuit boards.
 The term "electronic engineering" denotes a broad engineering field that covers subfields
such as analog electronics, digital electronics, consumer electronics, embedded systems and
power electronics. Electronics engineering deals with implementation of applications,
principles and algorithms developed within many related fields, for example solid-state
physics, radio engineering, telecommunications, control systems, signal processing,
systems engineering, computer engineering, instrumentation engineering, electric power
control, robotics, and many others.
 Electronics is a subfield within the wider electrical engineering academic subject. An
academic degree with a major in electronics engineering can be acquired from some
universities, while other universities use electrical engineering as the subject. The term
electrical engineer is still used in the academic world to include electronic engineers.
However, some people consider the term 'electrical engineer' should be reserved for those
having specialized in power and heavy current or high voltage engineering, while others
consider that power is just one subset of electrical engineering and (and indeed the term
'power engineering' is used in that industry) as well as 'electrical distribution engineering'.
Again, in recent years there has been a growth of new separate-entry degree courses such
as 'information engineering', 'systems engineering' and 'communication systems

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engineering', often followed by academic departments of similar name, which are typically
not considered as subfields of electronics engineering but of electrical engineering.

ICT Engineering
 Information and communications technology (ICT) is often used as an extended synonym
for information technology (IT), but is a more specific term that stresses the role of unified
communications and the integration of telecommunications (telephone lines and wireless
signals), computers as well as necessary enterprise software, middleware, storage, and
audio-visual systems, which enable users to access, store, transmit, and manipulate
information.
 The term ICT is also used to refer to the convergence of audio-visual and telephone
networks with computer networks through a single cabling or link system. There are large
economic incentives (huge cost savings due to elimination of the telephone network) to
merge the telephone network with the computer network system using a single unified
system of cabling, signal distribution and management.
 Information engineering methodology involves an architectural approach to planning,
analyzing, designing, and implementing applications. It is defined as: "An integrated and
evolutionary set of tasks and techniques that enhance business communication throughout
an enterprise enabling it to develop people, procedures and systems to achieve its vision".
It is also defined as the generation, distribution, analysis and use of information in systems.
This later definition involves the usage of machine learning, data mining and other
computational methods to enhance the presentation and understanding of the high-
throughput data that is generated by different systems. An example is bioinformatics,
applying information engineering to biological data.
 The ICT Engineering aims to master the essential knowledge of communication
technologies necessary for industrial practices in more profound depth and richness through
balanced education on electronics- and computer-engineering.
 There traditionally have been two grand schools of communications, i.e., electronic- and
computer communication. Electronic communication is about technologies for inter-people
communications including wired/wireless telephony and broadcasting, whereas computer
communication is about technologies for inter-computer communications like the Internet.
However, with the emergence of communications between people and computers as well
as that of Internet telephony, the boundary between the two grand schools has practically
disappeared. Therefore, the two schools are named in a unified term 'information
communications' (electronics communication + computer communication), i.e., InfoCom
for short.
 ICT is currently undergoing another round of whole-scale convergence. Besides that
already seen between electronic- and computer-communication, convergence between
wired communication over copper loops and optical fibers and wireless over infrared and
radio is now in full swing. Broadcasting and communications are also being converged with
its traditional boundary going away. In this way, dramatic convergence in ICT are taking

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place from multiple angles of telephony-computer, wired-wireless, and broadcasting-


communications.
Absorbing the convergent ICT of such an enormous extent and depth in a shallow side-track
within electronics- and computer-engineering is far from feasible and adequate. Balanced
and in-dept education of the two electronics- and computer-engineering is also essential in
order to fully digest and seek best application of this important convergent technologies.

Chemical Engineering
 Chemical engineering is a branch of engineering that applies physical sciences (e.g.
chemistry and physics) and life sciences (e.g. biology, microbiology and biochemistry)
together with mathematics and economics to produce, transform, transport, and properly
use chemicals, materials and energy. It essentially deals with the engineering of chemicals,
energy and the processes that create and/or convert them. Modern chemical engineers are
concerned with processes that convert raw materials or chemicals into more useful or
valuable forms. They are also concerned with pioneering valuable materials and related
techniques which are often essential to related fields such as nanotechnology, fuel cells and
bioengineering.
 Chemical engineering is a discipline influencing numerous areas of technology. In broad
terms, chemical engineers conceive and design processes to produce, transform and
transport materials - beginning with experimentation in the laboratory followed by
implementation of the technology in full-scale production.
Chemical engineers are in great demand because of the large number of industries that
depend on the synthesis and processing of chemicals and materials. In addition to traditional
careers in the chemical, energy and oil industries, chemical engineers enjoy increasing
opportunities in biotechnology, pharmaceuticals, electronic device fabrication and
environmental engineering. The unique training of the chemical engineer becomes essential
in these areas when processes involve the chemical or physical transformation of matter.

Civil Engineering
 Civil engineering is a professional engineering discipline that deals with the design,
construction, and maintenance of the physical and naturally built environment, including
works like roads, bridges, canals, dams, and buildings. Civil engineering is the second-
oldest engineering discipline after military engineering, and it is defined to distinguish non-
military engineering from military engineering. It is traditionally broken into several sub-
disciplines including architectural engineering, environmental engineering, geotechnical
engineering, control engineering, structural engineering, earthquake engineering,
transportation engineering, forensic engineering, municipal or urban engineering, water
resources engineering, materials engineering, wastewater engineering, offshore
engineering, facade engineering, quantity surveying, coastal engineering, construction
surveying, and construction engineering. Civil engineering takes place in the public sector

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from municipal through to national governments, and in the private sector from individual
homeowners through to international companies.
 In general, civil engineering is concerned with the overall interface of human created fixed
projects with the greater world. General civil engineers work closely with surveyors and
specialized civil engineers to design grading, drainage, pavement, water supply, sewer
service, dams, electric and communications supply. General civil engineering is also
referred to as site engineering, a branch of civil engineering that primarily focuses on
converting a tract of land from one usage to another. Site engineers spend time visiting
project sites, meeting with stakeholders, and preparing construction plans. Civil engineers
apply the principles of geotechnical engineering, structural engineering, environmental
engineering, transportation engineering and construction engineering to residential,
commercial, industrial and public works projects of all sizes and levels of construction.

Agricultural Biotechnology
 Agricultural engineering is the engineering discipline that applies engineering science and
technology to agricultural production and processing. Agricultural engineering combines
the disciplines of mechanical, civil, electrical and chemical engineering principles with a
knowledge of agricultural principles.
 Biotechnology is the use of living systems and organisms to develop or make products, or
"any technological application that uses biological systems, living organisms or derivatives
thereof, to make or modify products or processes for specific use" (UN Convention on
Biological Diversity, Art. 2). Depending on the tools and applications, it often overlaps with
the (related) fields of bioengineering, biomedical engineering, etc.
 The wide concept of "biotech" or "biotechnology" encompasses a wide range of procedures
for modifying living organisms according to human purposes, going back to domestication
of animals, cultivation of plants, and "improvements" to these through breeding programs
that employ artificial selection and hybridization. Modern usage also includes genetic
engineering as well as cell and tissue culture technologies. The American Chemical Society
defines biotechnology as the application of biological organisms, systems, or processes by
various industries to learning about the science of life and the improvement of the value of
materials and organisms such as pharmaceuticals, crops, and livestock. As per European
Federation of Biotechnology, Biotechnology is the integration of natural science and
organisms, cells, parts thereof, and molecular analogues for products and services.
Biotechnology also writes on the pure biological sciences (animal cell culture,
biochemistry, cell biology, embryology, genetics, microbiology, and molecular biology).

Basic Sciences (Education & Experiment)


 The New Institute will be established as a university aimed at achieving high level of
education and research in engineering. It is an education institution with the objective of
education and research, hence all departments will be under the School of Engineering.

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However, basic sciences such as mathematics, physics and chemistry are required in order
to carry out high quality engineering research. Therefore, the New Institute would need to
establish a School of Basic Sciences in addition to engineering departments.
 The School of Basic Sciences is in charge of education in natural science, in subjects such
as mathematics, physics, chemistry, biology, and so on. Each department or lab can select
required subjects depending on their curricula. The School of Basic Sciences is built to
strengthen education in the natural and basic sciences, and courses are offered similarly to
liberal arts courses. However, it will be challenging to sustain lecturers for each of the
required subjects just for the purposes of education. It would be the most efficient to retain
lecturers for key classes, and make use of KAIST’s video and on-line courses for other
subjects.
 Experiment courses are provided below.

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Table 35: Experiment Courses for Each Program

No Program Course Names


- Basic Mechanical Practice
- Mechanical Engineering Laboratory
- Capstone Design I, II
- Applied Electronics
- Engineering Design
Mechanical
1 - Modeling and Control of Engineering Systems
Engineering
- Machine System Automation
- Creative Problem Solving
- Electronics Laboratory for Mechanical Engineers
- Application of Computer Graphics
- Automatic Control
- Circuit Theory
- Signals and Systems
- Digital System Design
Electrical and
- Electronic Circuits
2 Electronic
- Electronics Design Lab.<RoboCam>
Engineering
- Electronics Design Lab.<Fundamentals for design of emerging
devices>
- Electronics Design Lab.<Network of Smart Systems>
- Introduction to Programming
- Programming Practice
- Problem Solving
- Digital System and Lab.
- Embedded Computer System
- Introduction to Computer Network
3 ICT Engineering
- File Structures
- Symbolic Programming
- Introduction to Computer Graphics
- Interactive Computer Graphics
- Operating Systems and Lab.
- Computer Science Project
- Molecular Engineering Laboratory
Chemical
4 - Chemical and Biomolecular Engineering Laboratory
Engineering
- Chemical and Biological product Design Laboratory

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- Soil Mechanics & Laboratory


- Elementary Structural Engineering and Laboratory
- Environmental Microbiology
5 Civil Engineering - Introduction to Geomatics Engineering
- Reinforced Concrete and Laboratory
- Civil and Environmental Engineering Data Analysis
- Experimental Vibration Engineering
- Bioengineering Laboratory
- Biotechnology Laboratory
- Genetics & Lab.
- Agricultural Microbiology & Lab.
Agricultural
6 - Plant Pathology & Lab.
Biotechnology
- General Entomology & Lab.
- Weed Science & Practice
- Soil Biology
- Viral Disease in Plant & Practice

Sub-Fields per Program


 Categories form the basis for statistics, and are required for managing various types of
information and in establishing systems for enhancing effectiveness of an organization or
nation. Categorization of disciplines and research fields is in itself a field of research, and
there have been many efforts leading to various standards for categorizing disciplines.
 Two things need to be taken into consideration in selecting sub-disciplines for each
proposed department. First, an important role of the New Institute is to lead Kenya’s
industrialization through R&D, hence this mission needs to be kept in mind in selecting and
categorizing the research fields. Second, the New Institute is also an educational institution,
hence academic sub-disciplines must also chosen rationally.
 The categories for fields of research suggested here have referred closely to the Korean
National Science and Technology Standard Classification System. This system had been
developed for effective management of S&T information, human resources, national R&D
projects and so on. A wide range of institutions including government-funded research
institutes, universities and price companies adhere to this classification system. Therefore,
this classification system is fit to be applied in selecting the research sub-fields for the New
Institute as well.
 On the other hand, academic sub-disciplines must also be selected in order for the New
Institute to fulfill its role as an educational institution. For example, there exist disciplines
that are regarded as pertaining to one academic field but applied over a wide range of
industries. In such cases, it would be most rational to establish sub-disciplines by academic
similarity rather than industrial uses. The following academic classifications have been
referred to in suggesting sub-disciplines for each department.

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 The following sub-fields that each program needs to concentrate were identified through
the Sub-Field Selection Workshop during the Complementary Trip of July 2015.

Table 36: Priority Areas for Mechanical Engineering

Rank Sub-Fields Purpose


1 Production technology near future
1 Robot/automation near/far future
3 precision machinery near future
3 Nano/micro machine far future
3 Automobile/railway vehicle near future
3 casting/welding/jointing near future
7 Energy/environment machine system far future
7 Industrial/general machine near future
7 Disaster and safety equipment near future

Table 37: Priority Areas for Electrical & Electronics Engineering

Rank Sub-Fields Purpose


1 Medical instrument near/far future
2 Optical application system far future
2 Renewable energy near/far future
4 Heavy electric equipment near future
4 Electric and electronic part near future
4 Weapon sensor/control far future
4 Nuclear power far future

Table 38: Priority Areas for ICT Engineering

Rank Sub-Fields Purpose

1 ITS/telematics near future

2 software near future

3 Satellite/radio communication far future

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Information and Communications


3 near future
module/component
3 Information communication for defense far future
6 Information theory far future
6 Information security far future

6 Broadband convergence network far future

6 U-computing far future

6 Hospital information system far future

Table 39: Priority Areas for Chemical Engineering

Rank Sub-Fields Purpose


1 Nano material far future
1 Oil & Gas Engineering near future
3 Energy engineering near future
4 Process control near future
4 Polymer engineering near future
4 Chemical process design near future
7 Fluid dynamics near future
7 Chemical reaction engineering near future
7 Bio plant and material far future
7 Thermodynamics near/far future
7 Separation process near future

Table 40: Priority Areas for Civil Engineering

Rank Sub-Fields Purpose


1 Environmental engineering near/far future
2 Surveying near future
3 Transportation engineering near future
4 Geotechnical engineering near future
5 Structural engineering near future

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6 Water resources engineering near future


7 Construction engineering near future

Table 41: Priority Areas for Agricultural Biotechnology

Rank Sub-Fields Purpose


1 Land & water management near future
1 Biomedical technology far future
3 Agricultural equipment & technology near future
3 Medical devices/equipment far future
3 Biomaterials far future

6 Agricultural product handling & processing near future

6 Storage structures near future


6 Biomechanics far future

Equipment and Facilities (E/F)


Current Status
 The following table lists up the current equipment status of major Kenyan universities.

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Table 42: E/F of Top 4 Universities in Kenya


University
School* Department Equipment/Facility Note
(homepage)
Agilent 1100 Series HPLC
Agilent 6890N GC with Auto Sampler
Gas Chromatography
Luminescence Spectrometer LS 50B
Infrared Spectrophotometer ※ Exclude lecture room
Chemistry
Atomic Absorption Spectrophotometer or laboratory name
UV-VIS Spectrophotometer
Incubator
CHN Analyser
School of Physical Nuclear Magnetic Resonance
Sciences Alpha Step System
LED Microscope
Edwards Auto 306 Instrument
UV-VIS-NIR Spectrophotometer
Laser Induced Breakdown Spectroscopy ※ Exclude lecture room
Physics
Univ. of Nairobi System or laboratory name
Potentiostat Instrument
(http://www.uonbi.ac.ke) Raman Spectrometer
Solar Simulator System
Viscometer System
※ Only lecture room
Civil and Construction Engineering -
or laboratory name
※ only lecture room
Electrical and Information Engineering -
or laboratory name
Filed Survey Equipment ※ Exclude lecture room
Geospatial and Space Technology
Wild A8 Stereo Plotter or laboratory name
School of Engineering Wind Tunnel
Foundry Shop
※ Exclude lecture room
Mechanical and Manufacturing Engineering Rockwell Hardness Testing Machine
or laboratory name
Tensometer Testing Machine
Vickers Hardness Testing Machine
※ Only lecture room
Environmental and Biosystems Engineering -
or laboratory name
Chemical & Process Engineering -
Civil & Structural Engineering -
School of Engineering Electrical & Comm. Engineering -
Mechanical & ProductionEngineering -
M. I. T Eng. -
Moi University
Aviation Electronics -
School of ※ Not available in website
Flying Studies -
(https://www.mu.ac.ke/) Aerospace Science
Aerospace Security & Logistics -
Biological Sciences -
School of Biological Chemistry and Biochemistry -
& Physical Sciences Physics & Mathematics -
Physics Mathematics Statistics and Computer Science -
※ Not available in
School of Agriculture
Kenyatta University website
& Enterprise Agricultural Science -
(http://www.ku.ac.ke/) ※ No natural science or
Development
engineering depertment
Mechanical Engineering Universal Testing Machine India -
CNC Milling Machine
School of Mechanical, Mechatronics Engineering PID controller -
Manufacturing Industrial PLC
& Materials Engineering Incubator
Biomechanical and Environmental Engineering
H-1400 PF machine -
Oil distiller
School of Electrical, Telecommunication and Information Engineering Siemens HLR-CP 113E -
Electronic and Oscilloscope
Electrical and Electronics Engineering -
Information Engineering Control Board
School of Civil Civil, Construction and Environment Engineering - ※ Not available in website
Jomo Kenyatta University of Engineering Dumpy Level Machine
Agriculture and Technology and Geomatic Geomatic Engineering and Geospatial Information systemsTopcon Total Station -
Engineering RTK GPS Set
(http://www.jkuat.ac.ke/)
Architecture -
School of Architecture
※ Not available in website
and Building Sciences Construction Management -
Landscape Architecture -
Physics - ※ Not available in website
Fourier Transform Infrared Spectrometer
(FTIR)
UV-Vis spectrophotometers
School of Physical Sciences
Chemistry Gas chromatography-mass spectrometers (GC- -
MS)
Atomic absorption spectrophotometers
Atomic emission spectrophotometers

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Common E/F by Program

Table 43: Common-Use E/F per Program

Name Maker or Model No. Price (US$)


Mechanical Engineering
Lathe Hachon HL-380-750 3set 51,000
Milling Machine Hachon HMV-1100 3set 60,000
CAD/CAM 2 set 7,000
bench drilling machine SMD-360 1set 1,000
CNC Lathe CUTEX-160 1set 45,000
Band sawing machine WBS-320S 4,500
Stage unit Toshiba / 1x2000_6 150,000
Surface Roughness Measuring
Kosaka / SE3500 76,000
Instrument
Agilent Technologies / Cary 5000
Universal Measurement System 100,000
UV-Vis-NIR
Dynamic Materials Testing Machine Instron Corporation / 7860 150,000
Total 309,500
Electrical/Electronics Engineering
pulse pattern generator Keysight / N4960A N4951B-H32 80,000
Pcket generator Ixia / LSM1000XMVDC4-01 85,000
Vector Signal Generator Agilent Technologies / E4438C 55,000
Vector Signal Analyzer Agilent Technologies / E4440A 100,000
Spectrum Analyzer Agilent Technologies / E4443A 120,000
Semiconductor characterization system Keithley Instruments / 4200-SCS 35,000
network analyzer Agilent Technologies / E5071C 42,000
Real Time Digital Simulator for Opal-rt Technology / OP4500C-
83,000
electrical power eDRIVEsim
RLC Load Combination RLC LOAD_0001 100,000
Precision Power Analyzer Yokogawa / WT3000 150,000
Total 850,000
ICT Engineering
Baseband generator and channel
Agilent Technologies / N5106A 100,000
emulator
EnvisionTEC / Perfactory3
Rapid prototyping system 320,000
SXGA+ Standard
DMB Video Encoder KME-A10 45,000
Rohde&Schwarz / MPEG-2,4
Digital TV Signal Analyzer 53,000
Player
SoC platform Pro Design Electronic 210,000
Serial Data Analyzer Teledyne LeCroy 90,000
Total 818,000

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Chemical Engineering
Microwave Organic Synthesizer MODEL 356000 70,000
PL Measurement System 100,000
UV-VIS-NIR Spectrophotometer SHIMADZU UV-3600 90,000
KK-021-AS with monitoring
Hermetically Sealed System 60,000
system
NICOMP 380 Sub-Micron Particle
100,000
Sizer
Organic & Thermal Evaporation
80,000
System
Hermetically Sealed System MODEL KK-021-AS 55,000
X-ray Diffractometer System 80,000
Physical and Chemical Absorption
BELSORB-MAX 150,000
System
Total 785,000
Civil Engineering
Model Mobile Loading System 1/3 Mls Test Systems Pty Ltd /
170,000
scale MMLS3
Infrared diagnostic system Nippon Avionics / h2640 83,000
Pine Instrument Company / AFG2
Portable Gyratory Compactor SUPERPAVE Gyratory 70,000
Compactor
Verdi, Avantes-bl / Blue
Acoustic Doppler Current Profiler 35,000
laser405nm, Spectrometer
Window performance measurement
KS F 2295 137,000
system
Road Survey Equipment 40,000
Density tester 30,000
Soft ground simulator 40,000
Heavy weight deflectometer KUAB / KUAB 240-1M 100,000
Particle Image Velocimetry Dantec Dynamics / PIV 150,000
Total 855,000
Agricultural Biotechnology
Confocal Microscope Witec / Alpha300RS 110,000
Becton Dickinson And Company /
Fluorescence-activated cell sorting, 400,000
FACSAria III
Beckman Coulter / Optima XE-
Ultra-centrifuge 100,000
100
Fast Protein Liquid Chromatography Ge Healthcare / AKTA PURE M 110,000
Ice maker Manitowoc SD-3303W3 3320 Lb 30,000
Total 750,000
Grand Total 4,702,500

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Table 44: Basic Experiment E/F per Program (Faculty I)

Name Maker or Model No. Price (US$)


Mechanical Engineering
Muffle Box Furnace AJ-MB3-1-4 1 set 12,000
Digital Micro-nanometer FC012-4 5 sets 37,500
Tensile testing machine DEC 1T 1 set 25,000
Micro Vickers Hardness Tester 1 set 35,000
Signal Conditioning Amplifier 2100-4CHAN 8 sets 64,000
Photo Microscope System 1 set 9,000
Universal Testing Machine ADHU-50TC 45,000
Chary Impact Testing Machine DYD-103D 12,000
Suction Type Wind Tunnel SDW-300S 25,000
Michelson interferometer, Hologram 35,000
PC 10 sets 10,000
Total 309,500
Electrical/Electronics Engineering
Oscilloscope [Tektronix] TDS2022C 2,500
Function Generator [Tektronix] AFG3022C 4,000
Power Supply [ED] ED-333E 600
Multimeter [EZ Digital] DM-442B 350
CPU i5-4690, RAM 4GB, SSD
PC 700
256GB, Windows 8.1 Pro
Monitor 19" 200
Total Sum(1~6) times 10 sets 83,500
ICT Engineering
CPU i5-4690, RAM 4GB, SSD
PC 700
256GB, Windows 8.1 Pro
Monitor 19" 200
Total 40 sets 36,000
Chemical Engineering
n-butane, iso-butane adsorption with
Ilhae system 8,600
molecular sieve 5A Volumetric
Schlenk line and reactor Han-tek 12,600
Constant temperature water bath and
2,000
reactor
Coupled tanks workstation Youngil system 40,000
Constant temperature water bath Seokwang scientific 1,600
Tensiometer Huecom system 13,000
Gel electrophoresis and imaging system BMS, Koram biotek 12,000
Stirrer, rotary evaporator Seokwang scientific 15,000
Total 785,000

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Civil Engineering
CPU i5-4690, RAM 4GB, SSD
PC 700
256GB, Windows 8.1 Pro
Monitor 19" 200
Total 40 sets 36,000
Agricultural Biotechnology
Eppendorf Xplorer® , single-
Pipette 3,000
channel(10sets)
HID Veriti® 96-Well Thermal
Polymerase Chain Reaction 10,000
Cycler, 0.2 mL
Spectrophotometer Jasco / V-67 40,000
Ph meter PPH-2108-S400NB(10set) 10,000
Mettler Toledo MX5
Micro Balance 12,000
Microbalance
Stirrer Mixer MS-300(10set) 3,000
Shaker H1010 Incu-Shaker 10L 10,000
Laboratory Refrigerators Thermo Scientific™ Revco™ 12,000
Perkin Elmer / Labchip GX
Electrophoresis system 45,000
Touch-24
Total 145,000
Grand Total 859,800

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University-Wide E/F
Table 45: University-Wide E/F

Name Maker or Model No. Price (US$)


X-ray Photoelectron Spectroscopy Thermo Scientific / K-Alpha 400,000
LC-MS Varian / 1200L 120,000
NMR Bruker / AVANCE III 400 150,000
Thermogravimetric Analyzer Ta Instruments / Auto Q500 40,000
Differential Scanning Calorimeter Perkin Elmer / DSC4000 40,000
Dispersive microRaman UniRAMII 30,000
FT/IR Spectrometer Jasco / FT/IR-6300FV 30,000
ICP-MS for planetary material
Perkin Elmer / NexION 300X 120,000
analysis
HR FE-SEM Hitachi / SU8010 100,000
Cold Type Field Emission
Hitachi / S-4800 250,000
Scanning Electron Microscope
High Resolution X-Ray
Diffractometer for SiC single Rigaku / SmartLab 200,000
crystal quality evaluation
Digital Oscilloscope Teledyne LeCroy / wr606zi 30,000
High-Resolution Gas
Leco / Pegasus GC-HRT 350,000
Chromatograph-Mass Spectrometer
Confocal Microscope Lasertech / H12 40,000
UV-Vis-NIR Spectrophotometer Agilent Technologies / G9825A 30,000
Particle Sizing Systems(PSS) /
Particle size analyzer 20,000
AccuSizer 780A
Total 1,950,000

ERP System
Table 46: ERP System for the New Institute

Name Maker or Solution Price (US$)


Administration & Student Affairs
Oracle ERP, etc 1,500,000
Information Management
Group Portal/ SSO Email System, Portal 200,000
WEB Server(SW, HW) Apache, IBM/HP 50,000
WAS Server (SW, HW) Oracle, Sybase 100,000
Storage Hitachi/EMC, SAN 50,000
Back-up Veritas, Avamar 20,000
Network LAN Switch 20,000
Security Firewall (Web, DB) 20,000
Total 3,910,000

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Chapter 6. Industrial-Academic Collaboration

Rationales for Industrial-Academic Collaboration (IAC)


 One of the key mechanisms through which an S&T-centered university contributes to
economic growth is a spillover of invention and innovation developed in university labs
into industrial production processes. As is well-known in the literature of endogenous
growth, S&T enhances the overall performance of economic production by increasing the
total factor productivity rather than simply adding more input.
In the language of economic growth theory, the role of S&T is to increase A rather than
K or L in the following production equation, Y = A𝐾 𝛼 𝐿1−𝛼 (K and L standing for
capital and labor, respectively). Although S&T can also add to K or L in the form of
infrastructure building and R&D workforce, the primary function of S&T in the
economic production process is to raise the input-output conversion rate represented
by A. (Aghion & Howitt 1997, Romer 1986).
 Yet due to the nature of scientific knowledge as a non-rival and/or non-excludable public
good, the contribution of academic research to economic growth cannot be taken for granted
(Arrow 1959, Nelson 1959). This is why governments have been actively involved in
linking industries and the academia, leading to what is called the “triple-helix” model of
technology transfer. In this model, three actors – university, industry, and government – all
play indispensable and unreplaceable roles in the national system of innovation (Etzkowitz
& Leydesdorff 2000).

Table 47: Role of Academic Research in Different Industries

Contribution of Research-based activities


Development activities
Academic Basic and applied science (mainly
Engineering disciplines (mainly tacit)
Research codified)
Very High Computers Pharmaceuticals
Aerospace
Petroleum
Motor vehicles
High Chemicals
Telecommunications & electronics
Food
Electrical equipment
Instruments Basic metals
Medium
Non-electrical machinery Building materials
Metal products Textiles
Low
Rubber and plastic products Paper
Mathematics, Computer Science,
Biology, Chemistry, Chemical
Relevant Fields Mechanical Engineering, Electrical
Engineering
Engineering
Source: Salter & Martin (2001)

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 In addition to technology transfer, academic institutions can also contribute to upgrading


the skills of the nation’s workforce. As noted in the studies of economic benefits of basic
research, the industrial utility of academic research ranges from the increase of the stock of
useful knowledge available for industrial problem-solving to the creation of new
instruments, new firms, and skilled graduates (Salter & Martin 2001).
 In short, it is crucial to design an effective mechanism of collaboration between the New
Institute and other actors of the national innovation system as well as of the global research
community in order for the New Institute to make real difference in both academic research
and industrial technology development. This chapter introduces a general framework of
collaboration and then examines the current status of industry-academic collaboration in
Kenya.

Current Status
 The experience of advanced countries in high-tech clusters such as Silicon Valley (U.S.) or
Biopolis (Singapore) makes industry-academic collaboration appear to spring up
spontaneously. It is in fact the result of conscious effort to identify common interests and
benefits and overcome barriers arising from differences in operations and organizational
culture.
 It is essential to canvass the current profile of Kenyan industries in order to maximize
mutual benefits from industry-academic collaboration (IAC) between the New Institute and
major actors for the construction of an effective IAC system.

Current IAC Initiatives in Kenya


 Kenya has recently witnessed burgeoning activities of collaboration and alliances among
R&D actors. The most ambitious effort in R&D collaboration is undoubtedly the Konza
Technology City Project, as discussed in Chapter 3. Potential investors contacted by
KOTDA include well-known domestic firms and universities such as University of Nairobi,
Safaricom, Multimedia University, Nairobi Hospital as well as international firms such as
Samsung (Korea), Huawei Technologies (China), and Telemac (USA). Other investors
lined up expressing interests in the project include: Google, Boeing, and Fedex (USA),
Toyota (Japan), Telemax Technology (Taiwan), Shapoorji Pallonji Group and Dhanush
Infotech (India).
 Many recent PPP projects have been centered on ICT, as ICT is fast spreading through
Kenyan society. The Kenya ICT Board (KICT) created in 2007 plays a key role in bridging
government-industry-university actors in ICT collaboration. At least three PPP-based ICT
projects are under operation as shown in the following table.

Table 48: KICT's PPP Projects in ICT

Project Description

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Provides basic ICT services for rural areas (including marketing of locally-
Rural ICT Enterprises
assembled PCs)
Low-cost PCs are assembled and provided in collaboration of University of
Madaraka PC Project Nairobi, Jomo Kenyatta, Kenya College of Communications Technology,
and Strathmore University.
Promotes ICT in the Athi River Processing Zone with local small
Multimedia Technology Parks
enterprises.
Source: AfDB (2013)

 Another ICT-centered collaboration program is an ICT incubation program. The Kenya


Industrial R&D Institute (KIRDI) and KICT in collaboration of the UN Industrial
Organization (UNIDO) and Kamtech Associates (Indian software developer) started an
incubation program taking in 25 university ICT graduates for a year-long training program.
 A good exemplar of a university-initiated collaboration program can be found in the
University of Nairobi’s S&T Park. UoN currently operates a rapid-prototyping fabrication
laboratory (Fab Lab). It is in fact a part of a worldwide network founded by Prof. Neil
Gershenfeld of the MIT Media Lab. Given the skepticism of the efficacy of its S&T Park,
UoN has adopted a strategy of involving only a small number of incubated companies in its
prototyping projects. It aims to expand the network of fab labs, however, to a larger system
of national innovation as envisioned in the following figure.

Source: Gachigi (2009)


Figure 32: S&T Park in the Kenyan National Innovation System

Major Actors in IAC

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 The triple-helix model emphasizes the interlocking nature of three major actors in the
system of national innovation – government, industry, and universities. Key to this network
is the hybrid organization that intersects different entities.

Statist Model Laissez-faire Model Triple Helix Model

Source: Etzkowitz & Leydesdorff (2000)

Figure 33: Models of University-Industrial Collaboration

University Sector in IAC


 Educational institutions that can potentially contribute to national R&D include universities
and TIVET institutions. Due to the grant of charters to 14 university colleges in 2013, the
total number of public universities increased from 8 in 2012 to 22 in 2013. TIVET
institutions are also on the rise.

Table 49: Number of Tertiary Education Institutions (2009~2013)

TIVET Institutions 2009 2010 2011 2012 2013


Youth Polytechnics 579 582 585 647 701
Institutes of Technology 17 14 14 14 9
Technical Training Institutes 19 26 26 35 35
National Polytechnics 2 2 2 3 3
Polytechnic University Colleges 2 2 2 2 -
Total 619 626 629 701 748
Universities 2009 2010 2011 2012 2013
Public 7 7 7 8 22
Private 24 25 27 27 30
Total 31 32 34 35 52

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Source: KNBS, Economic Survey 2014 (originally from MOEST)

Table 50: Public Universities in Kenya (as of 2013)

Year Year
University Area Chart- Original Name Founde Website
ered d
University of Royal Technical College, Royal http://www.uonb
Nairobi 1970 1956
Nairobi College Nairobi i.ac.ke/
http://www.mu.a
Moi University Eldoret 1984 Moi University 1984
c.ke/
http://www.ku.a
Kenyatta University Nairobi 1985 Kenyatta University College 1965
c.ke/
Egerton Farm School, Egerton http://www.egert
Egerton University Njoro 1988 1939
Agricultural College on.ac.ke/
Maseno Govt. Training Institute, http://maseno.ac.
Maseno University Maseno 1991 1955
Siriba Teachers College ke/

Jomo Kenyatta
University of Jomo Kenyatta College of http://www.jkuat
Nairobi 1994 1981
Agriculture and Agriculture .ac.ke/
Technology

Masinde Muliro Western College of Arts and http://www.mm


Kakamega 2009 1972
University of S&T Applied Sciences ust.ac.ke/
Dedan Kimathi Kimathi Institute of Technology,
http://www.dkut.
University of Nyeri 2012 Kimathi University College of 1972
ac.ke/
Technology Technology(2007)
http://www.cuc.
Chuka University Chuka 2012 Chuka University College (2007) 2004
ac.ke/
Kenya Technical Institute, Kenya
Technical http://tukenya.ac
Nairobi 2013 Polytechnic, Kenya Polytechnic 1961
University of Kenya .ke/
University College(2007)
Mombasa Technical Institute
Technical
[1966], Mombasa Polytechnic http://www.tum.
University of Mombasa 2013 1940
[1976], Mombasa Polytechnic ac.ke/
Mombasa
University College[2007]
Kilifi Institute of Agriculture, http://www.pu.a
Pwani University Kilifi 2013 2007
Pwani University College c.ke/
Primary Teachers’ Training
College (1965), Secondary
http://www.kisii
Kisii University Kisii 2013 Teachers' College (1983), Egerton 1965
university.ac.ke
Campus(1994), Kisii University
College(2007)
Chepkoilel University College as
University of http://www.uoel
Eldoret 2013 a Constituent College of Moi
Eldoret d.ac.ke/
University
http://www.naro
Maasai Mara
Narok 2013 Narok University College 2008 kuniversity.ac.ke
University
/

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Jaramogi Oginga
Bondo Teachers Training
Odinga University http://www.bond
Kisumu 2013 College, Bondo University 2009
of Science and o-uni.ac.ke
College
Technology
Egerton University Campus
http://laikipia.ac.
Laikipia University Laikipia 2013 (1990), Laikipia University 1990
ke
College
Ukamba Agricultural Institute
South Eastern http://www.seku
Kitui 2013 (Ukai), South Eastern University 2008
Kenya University .ac.ke/
College (Seuco)
Central Training School to serve
East African Posts Training
Multimedia http://www.mm
Nairobi 2013 School(1948), Kenya College of 2008
University of Kenya u.ac.ke/
Communications Technology
(1992)
Kabianga Framers Training
University of Center (1959), Kabianga Campus http://www.kabi
Kericho 2013 2009
Kabianga of Moi University(2007), anga.ac.ke/
Kabianga University College
Moi University Central Kenya http://www.karat
Karatina University Karatina 2013 Campus, Karatina University 2008 inauniversity.ac.
College ke/
Meru College of Technology
Meru University of http://www.must
Meru 2013 (1979), Meru University College 2008
S&T .ac.ke/
of S&T
Source: CUE (2015)

Industry Sector in IAC


 Among the top five largest companies in Kenya listed in Table 5.11, Safaricom is most
actively involved in IAC. Partnered with Strathmore University, it launched the facility
called “Safaricom Academy” in March 2011.

Table 51: Top Five Biggest Companies in Kenya

Kenya Airways  Founded in 1977


(www.kenya-airways.com)  Serving more than 100 flight destinations worldwide
 Public-private partnership company
Safaricom Limited  Formed in 1997
(www.safaricom.co.ke)1  More than 18 million subscribers
 Biggest mobile phone and communications provider in East
Africa
 72% of mobile phone subscribers
East African Breweries Limited  Founded in 1922
(www.eabi.com)

1
Two factors that contributed to the remarkable success of Safaricom are attributed to the per second
billing strategy (instead of per minute billing) and the introduction of M-PESA, Kenya’s most
prevalent mobile money transfer system (http://kenyaentrepreneur.hubpages.com/hub/How-
Safaricom-Became-The-Biggest-And-Most-Successful-Company-In-East-And-Central-Africa).

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 One of the biggest brewery companies in East Africa with


many top beer and wine brands
Kenya Commercial Bank  Asset of more than $2.64 billion
Limited  Holds a network of about 170 branches in Kenya
(www.kcbbankgroup.com)
Equity Bank Limited  Indigenous Kenyan bank starting as a building society in
(www.equitybank.co.ke) 1984
 Asset of $1.7 billion
Source: http://kenyaentrepreneur.hubpages.com/hub/The-Top-Six-Biggest-Companies-In-Kenya-And-
Their-Shareholders.

 Nairobi as a hub of the East Africa region houses a number of international companies,
which can be tapped into for IAC partners. Numerous global top companies such as Google,
IBM, Nokia, Pfizer, Sony, Toyota, and Qualcomm are headquartered in Nairobi covering
the whole continent or East Africa. Some companies such as Nokia operate regional labs.

Table 52: Global Companies Headquartered in Nairobi

Company Covering
BASF Sub-Saharan Africa
Bank of China East Africa
Bharti Airtel Africa
BlackBerry Ltd East Africa and Central Africa
Bosch East Africa
Cisco Systems East Africa
Chartis Africa
China Central Television Africa
China Daily Africa
China Radio International Africa
Citibank East Africa
Coca Cola Africa
Diageo Africa
Eltek Sub-Saharan Africa
FirstCarbon Solutions Africa
General Electric Africa
Google Africa
GSM Association Africa
Heineken East Africa and the Indian Ocean
Hill International Sub Saharan Africa
Huawei East Africa
IBM Africa
Intel Corporation East Africa
ITF Africa
Kiva Africa
LG East Africa and Indian Ocean

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Mastercard East Africa


Merck KGaA Africa
Mitsubishi Motors Africa
Motorola Solutions Sub-Saharan Africa
NIIT East Africa and Central Africa
Nokia East Africa
Nokia Research Hub Africa, India and the Middle East
Pfizer East Africa
Pricewaterhouse Coopers East Africa
Qualcomm Sub-Saharan Africa
Sage Group East Africa
Scania AB Africa
Sony East Africa and Central Africa
Standard Chartered Bank Africa
Stratlink Global Africa
TNT East Africa and Central Africa
Toyota Africa
Visa Inc. Sub Saharan Africa
Xinhua News Agency Africa
Source: Wikipedia, International Companies with African Headquarters in Nairobi (rearranged)

Government Sector in IAC


 As far as IAC is concerned, one can find numerous government agencies to tap into for
resource mobilization. Two major line ministries directly involved in S&T and innovation
are the MOEST and the MIC. In addition to the two line ministries, numerous agencies are
active in the sector of research, innovation, and technology (RIT) sector.

Table 53: Visions, Missions and Objectives of Two Major STI Ministries

Ministry Ministry of Education, Science, and Ministry of Information and


Technology (MOEST) Communication (MIC)
Vision A national culture that prides in and actively Kenya becomes a world class center of
promotes science, technology, innovation excellence in ICT.
and
quality higher education for prosperity and
global competitiveness
Mission To develop higher and technical education To facilitate ICT development in Kenya
and enhance integration of STI into national
production systems for sustainable
development
Strategic  To strengthen technical capabilities  Develop and improve ICT
Objectives  To develop high skilled human resources Infrastructure
 To intensify innovation in priority  Ensure efficient Management and
sectors regulation of ICT sector

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 To improve STI awareness  Increase productivity within the sector


 To increase Access and Equity in Higher  Capacity building within the ICT
Education and Technical, Industrial, sector
Vocational and Entrepreneurship  Improve national and international
Training connectivity
 To improve the Quality of Higher  Enhance provision of Communication
Education and TIVET Services
 To strengthen the Corporate Governance  Modernize and automate all public
Management Framework mass media establishments
 Accelerate the growth of Business
Process Outsourcing industry
 Formulate and implement appropriate
public policy and regulatory
frameworks to support ICT
development
 Provide equitable and affordable
quality information and
communications services
 Facilitate development of ICT based
industries for socio-economic
development
 Develop, promote and regulate the film
industry
 Promote and facilitate public private
partnership to enable innovations and
competition to accelerate the growth of
ICT industries
 Ensure equity and universal access to
the provision of ICT services.
 Build institutional, human resource and
R&D capacity in the ICT sector.
Source: Respective ministry website (www.education.co.ke, www.information.go.ke/)

Table 54: Semi-Autonomous Government Agencies in the RIT Sector

Autonomous and Semi-Autonomous Government Agencies Parent Ministry


1 Coffee Research Foundation (CRF) Ministry of Agriculture
2 Tea Research Foundation of Kenya (TRFK)
3 Kenya Sugar Research Foundation (KESREF)
4 Kenya Agricultural Research Institute (KARI)
5 Kenya Forestry Research Institute (KERFI) Ministry of Forestry and Wildlife
Ministry of Fisheries
6 Kenya Marine and Fisheries Research Institute (KMFRI)
Development
Ministry of State for National
7 National Museums of Kenya (NMK)
Heritage and Culture
8 Commission for Higher Education (CHE)
9 Public Universities
10 Higher Education Loans Board (HELB) MOEST
11 National Council for Science and Technology
12 All Public Technical Training Institute

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13 Kenya Industrial Research and Development Institute (KIRDI) MIED


Ministry of Public Health and
14 Kenya Medical Research Institute (KEMRI)
Sanitation
15 Kenya Broadcasting Corporation (KBC)
16 Kenya Film Commission (KFC)
Kenya Information Communication Technology Board
17
(KICTB)
18 Postal Corporation of Kenya
19 Communication Commission of Kenya (CCK)
20 National Communication Secretariat (NCS)
Ministry of Information and
21 Communication Appeals Tribunal
Communications
22 Brand Kenya
23 Kenya Year Book Board
24 The East Africa Marine Systems (TEAMS)
25 Fibre Optic National Network (FONN)
26 Kenya College of Communication Technology (KCCT)
27 Gilgil Tele-communication Industries
28 Kenya Film Censorship Board
Kenya Institute of Public Policy Research and Analysis
29 Ministry of Planning, National
(KIPPRA)
Development
30 Kenya National Bureau of Statistics (KNBS)
31 National Crime Research Centre (NCRC) State Law Office
Source: Government of Kenya, “Research, Innovation, and Technology Sector: Medium Term
Expenditure Framework,” 2009-2012 (January 2009)

Best Practices for Benchmarking


IAC Best Practices in Korea
 As to the frequently observed gap between university research outcomes and industrial
impacts, the MIT Sloan school scholars have suggested seven guidelines for best IAC
practices (Pertuze, et al. 2011).

o Define the project’s strategic context as part of the selection process.


o Select boundary-spanning project managers.
o Share with the university research team the vision of how the collaboration can help the
company.
o Invest in long-term relationships
o Establish strong communication linkage with the university team.
o Build broad awareness of the project within the company.
o Support the work internally both during the contract and after, until the research can be
exploited.

 Forms and conditions of industry-academic collaboration vary widely as demonstrated in


the following table. These are highly successful cases of IAC in Korea and other countries.
Given that the New Institute aims to be a center of excellence in the training and R&D in
science, technology and innovation, the F/S team assesses the best approach to be an

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intermediate model between the KAIST-Daedeok (strongly government-driven at the time


of inception) and SKKU-Samsung models (sprung out of industrial demands).

Table 55: Best Practices of IAC in Other Countries

Partners Key Features


 Science R&D-driven
 Created by a government-driven initiative
KAIST – Daedeok Special R&D
 Oldest R&D cluster in Korea
Zone (previously called Science
Town) or Daedeok Innopolis  Four specialized fields: IT convergence, Bio-
medical, Nano convergence, Precision
equipment
 Industry R&D-driven (Suwon Techno Valley)
 “Contracted departments”: creation of
Korea academic departments directly supplying the
Sungkyunkwan University (SKKU)
workforce for the industrial partner (e.g.,
–Samsung
Department of Semiconductor Systems
Engineering, Department of Software)
 Retraining of the industrial partner personnel
 Targeted to small and medium-sized
Korea Polytechnic University –
companies
Banwol-Shihwa Manufacturing
 Solution development for on-the-job technical
Complex
problems
 Clear focus on technological innovations
US: Stanford University – Silicon
 Vibrant ecosystem of venture capital, startups,
Valley
and university labs
 Centered around the industrial complex
Finland: University of Oulu – Nokia
International
and Intel  Co-lab project: graphical 3D technology
development
China: Tsinghua University –
 R&D-centered
Industry Cooperation Committee
 Heavy emphasis on technology transfer
(UICC)
Source: Korea Science and Technology Development Training & Consulting Program, INNOPOLIS
Daedeok, http://www.stp.or.kr/html/en/about/about_010202.html; http://www.semi.skku.edu/ and
http://soft.skku.ac.kr/; https://www.kicox.or.kr/home/duty/pilot_project01.jsp;
http://www.oulu.fi/english/news/2010/08/intel-and-nokia-establish-first-joint-research-laboratory-
university-oulu. See also http://www.cie.fi/.

IAC Framework for the New Institute


Potential Areas for IAC
 In order to conceive a successful operation of Kenya‐KAIST in its infant stages of
establishment, it is integral to organize and initiate distinct centers that would focus on
creating industry partnerships in the respective areas of student training, research, and
dissemination of information. The collaboration programs would also incorporate a tailored
training program for employees, faculty exchange programs to invite industry professionals
to teach at the university, and company sponsored researches.

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 The attempt to align academia and industry needs to be supported by both parties
involved. Through successful alignment, students can accumulate industry expertise
whilst industries can acquire human capital that matches their needs. Another important
point is the positive participation of the government organizations, such as the Ministry
of Education and Science & Technology and the Ministry of Industrialization, for the
financial support as well as systematic assistance.
 Based on the analysis of Kenya’s industry, R&D performance of Kenya’s universities, and
the government strategic plan for industrial development, the following areas may be
recommended for the focus of IAC at the New Institute:
ICT
Electrical & Electronic Engineering
Chemical Engineering
Civil (Environmental) Engineering
Agricultural and Biotechnology

Office of University-Industry Cooperation (OUIC)


 In order to promote IAC more actively, the creation of the Office of University-Industry
Cooperation (OUIC) at the early stage of the New Institute is strongly recommended, which
will be a central coordinating body on campus for all kinds of activities related to industrial
linkage.
 This is because lack of a central and unified office for university-industry cooperation can
risk trust between participating parties, as well as low compensation for contributors.
Establishment of an office dedicated to these affairs can contribute to building trust between
the university and industries, establish proper compensation schemes for professors,
students and other researchers involved, and thereby promote R&D in a manner that benefits
both the industries as well as the members of the university.
 As an office under the direction of the president of the university, OUIC will be primarily
concerned with projecting the future needs of the industrial sector, nurturing of human
resources in relevance to industrial needs, providing research direction for creation of new
knowledge and technology, and provide consultations for technology transfer to industries,
and so on.

Table 56: Management, Function, and Financing of the Office of University-Industrial


Cooperation (OUIC)

Management  OUIC is headed by one director.


 The Director is the chair of the board of directors of OUIC.
 The Director oversees and represents the OUIC, and is
nominated/supervised by the New Institute President.
 Rules regarding nomination follow the general bylaws of the New
Institute.

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Functions  Oversees signing and implementation of university-industry


contracts.
 Manages accounts related to university-industry cooperation.
 Deals with affairs related to acquirement and management of
intellectual property rights, technology transfer, and
industrialization.
 Supports the running and maintenance of university facilities and
equipment.
 Provides compensation for employees with inventions.
 Plans the Institute’s overall strategy for industrial cooperation.
 Supports start-ups within the Institute.
 Supports employment of students and graduates in industries.
 Supervises and supports companies under the incubation center.
 Collects and provides up-to-date information on demands and
recent trends in university-industry cooperation.
 Trains staff in university-industry cooperation.
 Consigns industry-related intellectual property owned by faculty,
or co-owned by faculty and others.
Financing  Contributions or subsidies by the central or local governments.
Sources  Income generated as a result of industry-academia contracts, or
all other proprietary assets.
 Donations made under industry-academia cooperation.
 Income generated from any affiliated companies established by
OUIC.
 Income or dividends generated from the university technology
holding company.
 Income generated from lending of university facilities or
equipment to industries or other universities.

 As for the organizational structure, the following four models might be considered.
 Parallel (KAIST Example): The Office of Research Affairs and the Office of University-
Industry Cooperation are headed by different directors. The Office of Research Affairs
centrally manages in- and out-of-house research projects.

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Office of the
President

Office of Office of Office of Office of


Academic Student Planning and ··· Research OUIC
Affairs Affairs Budget Affairs

 Independent: In-house research is managed by a separate department, whereas the OUIC


oversees only out-of-house research.

Office of
the
President

Office Office of
Office of
of Planning
Academic ···
Student and
Affairs
Affairs Budget

OUIC

 Serial: While the responsibilities of the Office of Research Affairs and the Office of
University-Industry Cooperation are separated with the former in charge of in-house
research and the latter out-of-house research, they share the same director and key
administrators.

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Office of
the
President

Office Office of
Office of Office of
of Planning
Academic ··· Research
Student and
Affairs Affairs
Affairs Budget

OUIC

 Integrated: The Office of Research Affairs and OUIC are integrated taking charge of in-
and out-of-house research
Office of
the
President

Office of
Office of
Office of Office of University-
Planning
Academic Student ··· Industry
and
Affairs Affairs Research
Budget
Affairs/ OUIC

Table 57: Distribution of Types of OUIC in Korea

Type Parallel Independent Serial Integrated None Total


Number 38 109 65 135 23 370
(%) 10.3 29.5 17.6 36.5 6.2 100

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University Technology Holding Company & Affiliated Company


 In the medium- ore long-run, the New Institute will be able to create companies on their
own. There are two types of companies that can be created on campus – a technology
holding company and an affiliated company.
 Technology holding company refers to an expert organization (corporation) dedicated to
the commercialization and industrialization of technologies and patents held by the
university through establishment of autonomous companies, joint ventures with external
companies, share acquisition of existing companies, and so on. The holding company
operates on projects through close collaboration with the Technology Licensing Office
(TLO), start-up incubation centers and the entrepreneurship center.
 There are three types of technology holding companies:
Autonomous: established solely and entirely on university investment.
Co-owned: established in partnership with an external organization or corporation.
Regional: established at a strategic location, in collaboration with several other
universities, research institutes, organizations, and so on.
 Affiliated companies may be created in two approaches.
One is based on the PUSH model, which creates a start-up based on in-house
technology. In this model, professors or students found a company out of their own
technology or ideas, and commercialization takes place in tandem with the founding of
a company.
The other is based on the PULL model, where an external company is acquired by the
university. In this case, an external researcher/entrepreneur strategically opting to take
advantage of the incubation program offered by the university. A private company co-
founding an affiliated company in the form of a joint venture through the university’s
university-industry cooperation program.

Industry-Linked Educational Programs


 It is strongly recommended that industry-linked education programs are installed at the New
Institute to link education, training, and employment. Three types of industrial linkage
programs are conceived as follows.
 (Customized Education with Employment Contract) In this arrangement Kenya KASIT
students receive extra stipends and are virtually guaranteed to be employed by the donor
company upon graduation.
The primary goal of this program is to produce innovative leaders who are capable of
applying theoretical knowledge over a broad range of problems and creating rapid
advancements in the areas of science and technology. The students are taught by both
outstanding faculties from KAIST and experts from the industry, so that they can

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establish a solid foundation in theory with thorough understanding of the latest


technologies.
During their coursework, students may take courses offered by experienced engineers
from the industry and gain hands‐on engineering skills. Students can also participate
in cutting edge research projects by joining research laboratories led by world class
professors. All the students gain internship experience at the industry prior to
graduation in order to freely explore the divisions that they want to join after
graduation.
For students who meet certain qualifications, opportunities are to be given in order for
them to obtain a PhD degree while maintaining their employment status at their
respective industries. As an effort to familiarize the students with the globalized
industry, students will have a chance to visit international subsidiaries of Samsung
Electronics, IBM, and other top universities. Committed administration staffs will be
providing exceptional service for educational and career‐related subjects that are
crucial to the students.

 (Cooperative Education Program) Also called “co-op,” this is an academic program which
allows students to obtain professional work experience while attending the college. It is a
unique opportunity for students to apply their academic training to real world situations
in business and industry. The co‐op program provides the students with the chance to
combine classroom study with periods of paid professional employment directly related to
the student’s major and career goals.
Students benefit from the co‐op program in many ways. Co‐op work experiences
provide students with an opportunity to explore career interests and goals, use the
workplace as your classroom, and gain professional development. Student will
receive individual supervision and support to prepare for co‐op assignment and to
make a smooth transition from student to professional. Also student will be able to
enhance educational experience by applying what student learned in the classroom to
solve real world problems in industry.
Co‐op students would be the most successful in finding beneficial positions in
industry and the career will advantage from co‐op experience. From the co‐op program,
students will gain confidence that they can be successful in the workplace. Students
will also have the opportunity to further develop their interpersonal, communication
and leadership skills in a professional environment. Students can cultivate a network
of professional connections that will prove helpful over the course of career.
The co‐op staff is devoted to providing students with a co‐op experience that is
most suited to student’s career interests and goals. The co‐op office should have strong
on‐going relationships with industry and be able to connect students to organizations
that are seeking student particular capability.
 (Re-education Program) The foremost goal of this program is to produce and supply
competent engineers who will satisfy the requirements of the current and forthcoming

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industries. Its major feature is that the compact trimester course system is conducted by a
combination of professional lecturers from the academy as well as the industry.
Students will conduct various projects in collaboration with leading industries and
incumbent industry professionals. With the experience gained from these encounters,
they may embark on becoming leading engineers after their graduation.
The academic department will operate training programs for advanced professionals
with more than one year of experience in the industry. Specifically, the objectives
of the department are to educate talented students, to maximize their full potentials in
planning and evaluating projects, to aid students in absorbing the fast tracking
technology, and lastly to guide students in becoming leaders who are equipped with
a global sense and capability.
Key elements of the courses offered in this program are as follows: (i) Development of
teaching materials and lesson schedules for all industry‐ academy collaboration
courses, (ii) Industry‐academy collaboration lectures from mandatory industry
professionals and vice‐versa to enhance transfer of up‐to‐date and state‐of‐the‐ art
technologies, (iii) Reflection upon demand from small and medium size venture
companies in the specific fields, and (iv) Development of the spot application
technology lecture that ensures the incorporation of specific contents demanded from
the industry.

Start-ups and Entrepreneurship Programs


 It is extremely important for companies to establish a healthy corporate system that operates
in a good cycle where creative minds can achieve progress and create jobs in order to
create and promote a knowledge-based economy. This necessitates the
establishment of a number of creative start‐up companies by graduates of top universities,
especially the New Institute.

 Start‐up companies can create many jobs as well as make a positive impact on the
economic growth. The Business Start‐up Support Center (BSSC) needs to develop
customized services based on new approaches for the coming era. These services must
be organized and targeted according to the stage of the firm’s development from the
preparation period to the establishment of the company.
Raising a start‐up firm is a rough process, solely based on fresh ideas and
technological development with the uncertainty on the future. The BSSC needs to do
its best effort to create a concrete start‐up ecosystem by achieving its role of
suggesting directions, supporting start‐up companies, and sheltering the difficulties of
entrepreneurs together. Start‐up firms are the solution that opens the door to the new
era of creative economies. The start‐up support center will take the lead in stimulating
start‐ups and creating jobs by developing the situation that makes it possible for anyone
to start a business with ease and convenience.

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The main functions of BSSC include: start‐up education, expansion of start-up


infrastructure on campus, start-up commercialization, start-up survey and research, and
creation of a creative environment for start-ups.

Technology Transfer Support


 Technology transfer is the process of transferring skills, knowledge, technologies, methods
of manufacturing, samples of manufacturing and facilities among governments or
universities and other institutions to ensure that scientific and technological developments
are accessible to a wider range of users who can then further develop and exploit the
technology into new products, processes, applications, materials or services. It is closely
related to and may arguably be considered a subset of knowledge transfer.
 The process to commercially exploit research varies widely. It can involve licensing
agreements or setting up joint ventures and partnerships to share both the risks and
rewards of bringing new technologies to market. Other corporate vehicles, e.g. spin‐
outs, are used where the host organization does not have the necessary will, resources or
skills to develop a new technology.
 Often these approaches are associated with raising of venture capital (VC) as a means of
funding the development process, a practice more common in the United States than in
the European Union, which has a more conservative approach to VC funding. Research
spin‐off companies are a popular vehicle of commercialization in Canada, where the rate
of licensing of Canadian university research remains far below that of the US.
 It is recommended to create the Technology T ransfer Support Center to support and
finance the commercialization of intramural research output at the New Institute. The
Center’s primary mission will be to promote and facilitate the transfer of Kenya‐KAIST
innovations for the benefit of the University community and the public. And its
responsibilities would include:
Administering intellectual property developed by Kenya‐KAIST researchers as a
result of Kenya–KAIST employment or use of Kenya‐KAIST resources;
Developing appropriate protection and transfer strategies to maximize the value and
usage of Kenya‐KAIST intellectual property;
Being a signatory authority for licenses and other intellectual property agreements;
Assisting and educating Kenya‐KAIST employees on matters related to intellectual
property rights (IPR).

Kenya-Korea Collaboration in IAC


University-Industry Cooperation with Korean Firms within Kenya

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 The popularity and awareness of Korean brands, such as Samsung, LG, Hyundai, in the
local market is heightened by Korea’s image related to high technology. As a result of
marketing strategies, the “Korea” brand image and awareness in Kenya and the larger East
Africa is being heightened.
 High tech products such as Samsung mobile phones, LG flat screen televisions and Hyundai
Automobile’s Sonata are products that are highly desired by East African consumers. These
brands have expanded their markets across the region, and have maintained a significant
level of market share within 10 years of entering the market.

Table 58: Korean Firms Active in Kenya

Firms Presence in Kenya


Samsung  Occupies 15% of Kenya’s market share for mobile phone with
Electronics built-in cameras
LG Electronics  Has established a corporate presence in Kenya, and is competing
with Samsung Electronics over market share for electronic
products and mobile phones.
Hyundai and Kia Each occupies 8% and 1% of Kenyan markets respectively.
Automobiles  Car models that are currently available in the Kenyan market are
Santa-Fe, Tucson, Hyundai H 100 Truck, Hyundai Accent,
Hyundai H 1 Mini van and Hyundai D 72 Truck.
 Kia Automobile has accessed the East African market through
Meashalls East Africa, and models such as Shuma, Cerato,
Picato, Sportage, Sorento, Carnival and K2700 are available for
purchase locally.
Hyundai  Hyundai Engineering has undertaken projects in the field of
Engineering power generation since 2012, starting with the expansion of
Olkaria I, a 140MW geothermal power plant within Hell’s Gate
National Park, 90 km northwest of Nairobi, and the construction
of Olkaria IV, another power plant of similar capacity.
 Olkaria geothermal plants have increased Kenya’s electricity
supply by 20%, and have contributed to the serious lack of
electricity in the country. Kenya’s total electricity generation is
approximately 1600MW as of 2015.
 Geothermal power potential in Kenya is approximately
7000MW, and is hence an optimal location for generation of
renewable energy, and it is expected that more projects will be
underway. Hyundai Electronics has thus been expanding its
influence in the Kenya market, and while it has increased is
capacity within Kenya, it has also been active in projects in the
larger Africa region as well.
Other Firms  Other Korean firms that remain active in Kenya include Hwan
Sung Furniture, Fursys, Kumho Tires, and Hankook Tires.
 These firms have display stores that are currently in operation,
and are seeking possibilities for expanding their stores to other
localities such as Mombasa, Kisumu, and Nakuru. The kitchen

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furniture market has displayed exceptional prospects in the recent


years.
 Fursys also operates a display store on Mombasa Road, and
Kumhoo and Hankook Tires, are well known as Korean brands.

 Strategic University-Industry Cooperation between Kenya and Korea


LG Electronics has been collaborating with the University of Nairobi and has
established a system air-conditioning academy, which offers courses on installation,
servicing and so on, but is only able to train on assembling of imports semi-
manufactured goods from Korea.
The New Institute could pair with LG Electronics by signing an agreement for the
establishment of a local manufacturing system, and operate a research center within the
New Institute.
By reducing costs such as distribution costs and taxes and thereby becoming more price
competitive, it will be possible to provide air conditioners to not only the Kenyan
market, but the entire East African region.
Samsung Electronics has been seeking opportunities for building an assemblage factory
in Kenya for electronic products, and the New Institute could host a research facility to
serve as the advanced base for Samsung Electronics, with the support of a consortium
composed of the Korean Embassy, KAIST, the New Institute and Samsung Electronics.
Samsung could benefit by reducing costs while expanding market share, and the New
Institute will have the opportunity to receive technology transfer and technical
education, and extend its influence in Kenya’s electronics industry.
Samsung Electronics also has plans for establishing an ‘engineering academy’ and
produce 10 thousand engineers in Africa. A collaborative strategy between Korea and
Kenya could allow the New Institute to play a large role in this plan.
The potential of geothermal power generation in Kenya is internationally competitive,
being able to supply 10 new power plants. Hyundai Electronics is pursuing the
establishment of several geothermal power plants by phase, including the Olkaria
power plants.
There is the possibility of collaborating with the Graduate School of EEWS at KAIST
and Hyundai Engineering for an education program for the construction, management
and maintenance of world class geothermal plants, and produce experts with
professional knowledge who can support future plants.

Strategies for ICT-Centered University-Industry Cooperation between


Kenya and Korea

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 Kenya is an ICT-hub of the region. Its Internet usage is up to 50% of the entire population,
increasing 5 times in 5 years. And the government is currently pursuing the establishment
of 4G communication infrastructure.
 Investments in ICT: According to Kenya’s Ministry of Finance, investments for
infrastructure in ICT is third highest in all investments allocated for 2012~2020.
Investments in ICT is approximately 7.85 billion USD (12.6%), which is surpassed only by
19.88 billion USD in energy, and 9.0 billion USD in roads.

Table 59: Investment Plans for Public Infrastructure by Sector Allocated for 2012~2020

Amount
Ranking Field Percentage
(billion USD)
1 Energy 19.9 31.8
2 Roads 9.0 14.4
3 ICT 7.85 12.6
4 Rail 7.248 11.5
5 Ports 4.800 7.7
6 Water Systems 4.567 7.3
7 Transportation Systems 3.723 5.9
8 Housing 2.901 4.6
9 Tourism 2.050 3.3
10 Local Government 2.000 3.2
11 Public Engineering Works 1.000 3.1
12 Airports .906 1.4
Total 62.176 100

 The Konza Technopolis Development Authority (KOTDA) is overseeing the development


of Konza Technopolis, aiming at becoming Africa’s larger Silicon Valley. The plans have
been underway since 2012, and have been officially launched in 2015. There are also many
projects involving free provision of PCs to primary and secondary schools, as well as major
large scale projects such as the introduction and expansion of 4G (LTE) networks. It is
expected that investment rate in the field of ICT will steadily increase.
 Kenya, half of the population having access to the Internet:
According to a report published by the Communication Commission of Kenya, the
number of Internet users in June 2015 has surpassed the 20 million mark, which makes
up approximately half the entire population of Kenya.

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The majority of Internet use is mobile Internet connection through mobile phones, in
addition to connection via PC and satellite data. With the provision of PCs throughout
primary and secondary schools, it is projected that the number of Internet users will
increase as more users from a wider age range will consume the services.
 Telecommunication companies in Kenya
Four companies are in operation in the telecommunication sector in Kenya: Safaricom,
Airtel, Orange (KenyaTelecom), and Yu (Essar Telecom), and Safaricom has the
greatest market share at 65.9%.
40% of mobile subscribers are also subscribed to a data plan, and Safaricom also
occupies a majority of the data service market at 75.6%.
 Banking, mobile money is a major trend
Mobile service providers each provide a banking service: Safaricom’s M-Pesa, Airtel’s
Airtel Money, Yu’s You Cash and Orange’s Orange Money. Total number of
subscribers as of June 2013 is at 2.5 million, which is a 27.3% from 2012. The number
of companies utilizing mobile money as of June 2013 is at 8,846, which is an 80%
increase from 2012.
According to Safaricom, who first introduced the mobile banking system, the service
was introduced in order to address needs of both urban and rural populations that were
unable to apply for standard bank accounts and services, and to provide these customers
with fast and safe banking services. In fact, there exist a total of 1362 bank offices in
Kenya, 50% of which are concentrated in the 3 largest cities in Kenya (518 in Nairobi,
108 in Mombasa and 57 in Nakuru) hence access to banking services in rural areas is
very limited.
Safaricom noted that PC penetration in Kenya was only at 10%, whereas mobile phone
penetration was steadily increasing, and that there was a high demand for bank offices.
M-PESA took advantage of these conditions and within 7 years of launching the
services, there were 17 million subscribers and made a revenue of 250 million USD.
Since the services only requires the user to own a mobile phone in order to be eligible,
the number of subscribers is expected to increase.
 Implications: By promoting various ICT-centered projects such as development of the
Konza Technolopolis, building a nation-wide 4G and LTE network, free provision of PCs
in public schools, introduction of electronic tax collection systems (payments through credit
card or mobile money made available since April 2014), and other various IT related
projects, Kenya is surely demonstrating its role as the IT hub of East Africa. Korean firms
with strengths in the IT sector will have many opportunities to enter the Kenyan market by
seeking opportunities in field such as IT contents development, smartphone app
development, provision of communications equipment or technological cooperation for the
expansion of communication infrastructure.
Especially, since the Transform Africa Summit 2013 held in Kigali, Rwanda, the
President of Kenya expressed interest in Rwanda’s LTE project that was underway
with a Korean firm. Following the Summit, the President of Kenya invited

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representatives of Korean firms to Nairobi in order to discuss the possibility of pursuing


similar projects in Kenya, increasing the possibility of Korean firms’ participation in
establishing a 4G LTE mobile broadband network in Kenya.

Plans for KAIST-New Institute University-Industry Cooperation in ICT


 The applications of ICT technology such as the Internet, mobile communication,
broadcasting in society have increased rapidly, and can have significant contributions to the
advancement and transformation of developing countries. Therefore, collaboration between
Korea’s international competitiveness and Kenya’s position as East Africa’s IT hub can
produce synergies.
 KAIST has established and is operating a Global Cooperation Research Center at Pangyo,
Korea’s advanced base for ICT, since 2015. By fostering a relationship of cooperation
between the New Institute and Pangyo, it will be possible to establish a foundation for
Kenya to gain access to world-class ICT technology, and promote nurturing of high-quality
human resources and strengthen capacity through technology transfers.
 KAIST Global Cooperation Research Center and the New Institute could co-establish a
foundation for applied research-based university-industry cooperation though liaison with
industrial sites. In addition, promoting high-quality deliverables from the New Institute that
can be transformed into industrialization in both Kenya and Pangyo can lead to a sustainable
relationship between the two schools.

Table 60: Support Programs for KAIST-New Institute ICT-Centered University-Industry


Cooperation

Support Program 1 Support Program 2 Support Program 3


⇓ ⇓ ⇓

󰊱 Industry-Customized 󰊱 Open R&BD 
 󰊱 Support for Global


Education 
 Entrepreneurship 

(Goal) Open University-
(Goal) On-site education for Industry Convergence (Goal) Support for global
skills that industries want Research market pioneering
Support for Kenyan model Direct operation of KAIST Simultaneous operation of
for on-line education ICT LAB Start-up, SK and other
platform EDU 3.0 KAIST programs
▪ Short-term Capstone ▪ Support through provision
▪ Identification of R&D
courses for strengthening of KAIST’s original R&D
problems facing Kenyan
problem-solving skills outcomes, IPR and high-
firms → Matching with
▪ Site-liaised problem-solving KAIST research group level researchers
courses ▪ Consulting for entry into
▪ (Following inspection)
▪New Institute -KAIST Operation of OpenLAB. overseas market of research
Entrepreneurship Camp (3 outcomes of the New

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Kenya Advanced Institute of Science and Technology Feasibility Study

days) ▪ IT/SW-centered research. Institute using the KAIST-


Silicon Valley network

Provision of KAIST EDU3.0 Program Customized for Kenyan Firms


 To facilitate the university-industry cooperation of the New Institute, one can consider
creating programs to nurture multi-talented individuals. Such individuals will be addressing
problems facing Kenyan industries through the process of “problem recognition 
discovery  conceptualization  solution seeking” by Creativity, Logic and Convergent
Thinking.
 These programs will offer courses on creative problem-solving, co-designing of curriculum
customized to industrial needs, and offer KAIST-New Institute double degree (Masters).
 Educational support for site-related (Capstone) creative problem-solving methodologies
includes the following:
Courses for building the ability to understand and connect the role of different
innovation actors in science, future society, and technology, and increase problem
identification and solving skills.
Theoretical accumulation of convergence education methodologies through problem-
centered case studies.
Site visitation of Kenyan industries for first-hand realization of the gaps between theory
and application, followed up with various experiments, research and education
methodologies for overcoming these gaps.
Continuous development of convergent forms of methodologies through the courses
offered, and actual application of the methods on site for problem resolution.
 By exploring methodologies that can best overcome the disparities between research results
of the New Institute and their application on site, the curriculum promotes (1) problem-
oriented explorative research education, and (2) education that promotes exploration of
various directions for potential spectrum of future problems.
For this, a team-based project methodology could be implemented that can effectively
nurture problem-solving skills, and thereby provide experiential opportunity to acquire
problem-solving methodologies possessed by creative talented groups, and establish
the New Institute’s competitive advantage.

Table 61: Example of Team-based Projects

Case of Team Project for Problem-Solving under Limited Conditions:


Embrace Infant Warmer
 Project undertaken as part of Stanford’s 20-week-long Design for Extreme Affordability.
 Low-price equipment that mothers can use, targeted for India where half the world’s low
birth-weight infants are born.

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 Equipment can be charged and used for 4 hours using hot water rather than electricity, and
has helped more than 3,000 babies following the completion of the project, was presented on
‘20/20’ on ABC News in 2012, has signed a global distribution contract with GE Healthcare,
and continues to strive for distribution in developing countries.

 Co-designed industry needs-based convergent curriculum for university-industry


cooperation
Aiming for co-designed curriculum that are able to reflect rapidly changing technology
trends by expanding adaptation of convergence technologies and shortening industrial
technology cycles.
Especially, for convergence research that are necessary for nurturing R&D capacities
and staff education of individual firms, convergent R&D will provide interdisciplinary
education-based nurturing of high-quality brains.
Co-designing of a Kenyan model of courses between industry and academia for a re-
education program for nurturing of new brains as well as existing researchers, who will
be able to carry out convergent R&D.
For a stable initial period of the New Institute, KAIST will need to (1) promote
exchange of university-industry human resources between Kenya and Korea, (2)
develop curriculum that is based on interdisciplinary education for collaborative
research, (3) introduce new exchange programs for staff, professors, and researchers
between the research centers.
 Support for introducing university-industry double degree and professional degree at the
New Institute
Establishing novel degree programs for professionals in specific, specialized fields.
Development of curriculum for the new degree program, customized course lectures,
research plans for degree, supervision of thesis, and coordination of opinion of partner
firm and the New Institute.
This will require a revision of the initial policy on degree conferral, revisions to
administrative rules regarding actual participation of firms in educational curriculum,
reimbursements regarding operations, and so on.
 Provision of the New Institute version of the university-industry convergence education and
research knowledge-related KAIST online course platform Edu 3.0
University-industry convergence always requires a repository of the sea of knowledge
that are needed to solve problems in all pertinent fields, and the KAIST online platform
will be supplied in a version that supports the Kenyan context.
Repository of knowledge of online courses on various fields
Timely and easy extraction of required information using a knowledge map

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Provide suggestions on lectures following extraction of knowledge for problem


solving
 In order to provide courses that are fitting to one’s needs and appropriate for one’s capacity,
extra short major courses of 5 to 15 minutes should be developed. The link between
individual courses should be analyzed to provide suggestions for future courses, hence
enabling students to receive the right information and education effectively.
 Major courses will be composed of contents that have been approved by both the partner
firm, the New Institute.

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Kenya Advanced Institute of Science and Technology Feasibility Study

Chapter 7: Architectural Plan

Site Overview
Geographical Location

SITE

Figure 34: Project Location

 Kenya lies on the equator with the Indian Ocean to the south-east, Tanzania to the south,
Uganda to the west, South Sudan to the north-west, Ethiopia to the north and Somalia to the
north-east. Kenya’s total area of the territory is approximately 581,309 km2 and has a
population of approximately 44 million as of July 2012.

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Architectural Overview

Table 62: Regional Data

Location
 Coordinates: 1°17′S 36°49′E
 Area: 696 km2
 Elevation: 1,661 m

Climate

Climate data for Nairobi


Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year

Record high °C 30.3 31.1 32.8 30.7 30.4 29.3 28.6 30.1 30.7 31.2 30.6 29.8 32.8

Average high °C 25.5 26.7 26.8 25.0 23.6 22.5 22.0 22.7 25.0 25.7 24.0 24.4 24.5

Daily mean °C 18.0 18.8 19.4 19.2 17.8 16.3 15.6 15.9 17.3 18.5 18.4 18.1 17.77

Average low °C 10.5 10.9 12.1 13.4 12.1 10.0 9.2 9.1 9.7 11.3 12.7 11.7 11.1

Record low °C 5.3 6.2 7.7 8.0 7.5 4.0 3.8 2.7 3.2 6.1 7.2 6.5 2.7

Rainfall mm 58.3 49.8 92.2 242.3 189.5 38.6 17.6 24.0 31.2 60.8 149.6 107.6 1,061.5

Avg. rainy days (≥ 1 mm) 4 4 8 16 13 5 3 4 4 7 14 9 91

Mean daily sunshine hours 9.3 9.5 8.6 6.8 6.1 5.3 4.2 4.1 6.0 7.3 6.6 8.3 6.8

Source #1: BBC Weather

Infrastructure

 Transport
Airports: Jomo Kenyatta International Airport, Wilson Airport, and Eastleigh Airport.
Train: Kenya Railways (KR) The line runs through Nairobi, from Mombasa to Kampala.
Bus: Four major bus companies operating the city routes and are the traditional Kenya Bus
Service (KBS).
 Highways: Highways connect the city with other major towns such as Mombasa, Machakos,
Voi (A109), Kisumu, Nakuru, Eldoret, Namanga Border Tanzania (A104), etc.
 Water supply and sanitation: 94% of water supply for Nairobi comes from rivers and
reservoirs and only 40% of those with house connections receive water continuously.

Understanding the Site


 Konza Technology City is located at the heart of Athi Kapiti plains within borders of the
wider planning region of the Nairobi Metropolitan Region (NMR) that comprise Machakos

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County to the North East, Kajiado County to the West and Nairobi County to its North
West. KTC is located to the South-East of Nairobi, 60 kilometers from the city center and
400 kilometers from Mombasa town. Makueni County is to the East of the technology city.

Figure 35: Konza Techno City Location

 The initial concept of the Konza Techno City derived from the concept of enhancing the
Kenya ICT platform to host business process outsourcing (BPO) ventures, a science park,
a convention Centre, shopping malls, hotels, international schools, and health facility
project was allowed by the Kenyan Government in the City of Makueni County with 5000
acres of land.

Current Conditions of Konza Technology City

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 The main centers around Konza include Malili, Nguluni, Salama. Muumandu, Konza
station, Katumani, Kasunguni, Ulu, and Ngiini. These centers are not well planned and lack
basic infrastructures thus providing only low level services.

 Map of Konza showing nearby cities

Figure 36: Site Location

 Pure Greenfield with minimum power lines

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Figure 37: Site Photograph I

 Unpaved Road works

Figure 38: Site Photograph II

Climatic Condition of Konza

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 Konza lies at an altitude of 600~1900 MASL with rainfall ranging annually from 150 mm
to 650 mm rendering the place categorized as Arid and Semi-Arid Lands. The average
temperature of Konza is about 26oC with two rainfall seasons during March-May and
October-December for long and short rains respectively.

Figure 39: Precipitation in Nairobi

Figure 40: Rainy Days in Nairobi

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Existing Infrastructure
 This is a greenfield with no significant infrastructures yet visible. Only temporary shelters
and water towers attest the minimum service being provided.
 Water Tower

Figure 41: Temporary Water Tower

Architectural Requirements
Architectural Plan
 A detailed Design Guidelines for Konza Technology City will be published by KOTDA in
late October 2015. Further detail discussion on Owner’s Requirement should be conducted
with KOTDA.
 Local natural environment and social, cultural, religious characteristics should put into
consideration of the design. The context around the project site should be taken into account,
and especially the building should be designed in harmony with the existing buildings.
 The client requirements should be listed carefully. Sufficient consideration is to be given to
flexibility and adaptability for any changes in requirements.

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 To enable the effective functioning of each building without impediment, the design should
provide rationality regarding organic spatial compositions and distribution of places in
proper sizes to maximize its effects with related costs minimized.
 The main University Building needs to design as a landmark to showcase the innovative
spirit and approach to research and education by the New Institute.
 Spatial composition and systems should be planned considering the behavior of the users
regarding local culture, religion, and habits in Kenya.
 Daylight control and natural ventilation plan should be taken into an architectural plan
considering the local climatic condition.
 In consideration of the climatic variations during the wet and the dry seasons, there would
be less damage from precipitation or problems in building over the wet season. And ‘finish’
materials should be selected for protection from daylight.
 Convenience for facility maintenance shall be considered. Since technological knowledge
of the users can be limited, the building should be planned so that the maintenance can be
as easy as possible.
 Relating existing facilities of campus, it should be planned considering accessibility,
recognition and enter of pedestrian and vehicle.
 It should be also considered into future extension and alterations.
 Direction and exterior space shall be planned to accommodate the needs of each site. And
it should be planned considering natural lighting, ventilation and view.
 The plan to preserve the layout of land and trees is needed as much as possible.

Mechanical System Plan

 The Mechanical System Plan needs to consider economic feasibility and maintainability as
well as the initial cost and running cost. The selection of the mechanical system is subject
to later extension and change.
(1) Water Supply System
o Ground water tank of elevated water tank is popular.

o Elevated water tank for new buildings is recommended.

(2) Heat Source and Hot Water Supply System


o The Heat Source and Hot Water Supply System appears to be unnecessary due to local climate,
but it may need small hot water supply equipment depending on the user’s needs or opinions.

(3) Drainage and Sewage System


o The underground septic tank will be installed to clean the drainage and sewage, and that

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would be disposed by natural discharge under the ground.

(4) Air Conditioning System


o It would be desirable to install individual air conditioner in each space considering the
operation and maintenance. Research on whether there is any space which need both heating
and cooling is needed.

(5) Ventilation System


o Since individual air conditioners are used, cost for maintenance and operation should be
minimized by maximizing natural ventilation. At the spaces where air conditioners are not
installed, ceiling type fan or wall type exhaust fan should be considered.

(6) Mechanical Fire Protection System


o Fire protection system should be installed in accordance with fire protection regulations
appropriate to the local condition.

Electrical System Plan

 The Electrical System Plan needs to consider efficiency of maintainability and


management. It should also consider reliability, safety, extension and flexibility for the
electric power supply. It needs to be planned in accordance with the purposes of saving
energy and preventing various disasters.
 Power Supply System
1) Power Inlet: The electricity is planned to be directly drawn from the near transformer, however
later re-examination of the exact necessary capacity is required.

2) Electric Room: While the Electric room is not needed since the electricity is drawn in directly
from near transformer, a space for installing the low voltage switchgear should be considered.

 Secondary Power Source System


1) Necessity of the Emergency Generator: Emergency generator for power outage.

2) Summary of Emergency Generator: The emergency generator is designed to automatically


operate for an emergency such as power outage and supply the generated power to the
emergency load. After the main electricity comes back on, it checks whether the electricity is
back completely and then automatically stops.

3) Emergency Generator’s Capacity: Emergency generator’s capacity follows electrical local


calculation which will be carried in design phase. Additionally the maximum duration of the
Kenya’s power outage should be surveyed.

4) Emergency Generator’s Installation Location: When selecting the location of the emergency
generator, the vibration and noise during the operation should be considered. Also a dedicated
space to install the switching device and low voltage switchgear for supplying the electricity
during the operation of the emergency generator is needed.

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5) UPS and Storage Battery Equipment: During power outage, emergency generator is operated
and individual UPS will be supplied so that separate UPS and storage battery system are not
required during the construction.

 Information and Communication System


Integrated wire system, public address system, TV system, CCTV system, etc., should
be installed at minimum level considering the local condition where there is no
sufficient labor force and technology for maintenance.
Network composition is required in the rooms using computers such as network, server
room, and office.
 Fire Protection System
Even though the fire protection system should be installed in accordance with fire
protection regulations appropriate to the local condition.

Conceptual Design
Konza Technology City Master Plan

Figure 42: KOTDA's Master Plan

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Development Phases
 Initially, 4 phases for the entire 5000 acres of Konza parcel have been planned, with the
Phase 1 as shown being the first development. Of the first phase, the Phase 1A “Life Science
Band” plan was anticipated to be the first with 1B phases to follow. Now that the Kenya
Advanced Institutes of Science and Technology has shown the interest in Konza, the
University parcel will also be included at the same time as the Phase 1A plan. This would
mean that tentatively, there would be three phases to begin and University band phase
complete by year 2020.
 The establishment of the University Band infrastructure should be completed by 2017.
o Phase 1A (Life Science Band)
o University Band by 2017
o Phase 1B

Figure 43: Konza Phasing Diagram

Zoning
 Four Bands of Zoning (University, Residential, life Science, and Office) are arranged in the
north east directions anchored by the “Mixed Use Bar”. Among these bands, “Life Science
Band” has been selected as a first development plan to initiate the whole development and
will be followed by the “University Band” in order to facilitate the Kenya Advanced
Institutes of Science and Technology.

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Figure 44: Master Plan Phase I

Figure 45: Master Plan Phase I & IA

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University Band
 The University Band is expected to accommodate 6,500 students hosting world class
universities. However, there are no significant planning in the University Band at this
moment. This allows great flexibility for Kenya Advanced Institutes of Science and
Technology campus so as to use any parcels in the University Band.

Figure 46: University Band

Infrastructures
 Most essential infrastructures are included in Phase 1A development and the Kenyan
Government has assured the construction of essential infrastructures shall be conducted as
scheduled. (Red Line : 0~2Years / Green Line : 3~5Years)

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Figure 47: Konza Infrastructure

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Campus Plan
Land Usage
 Four upper Parcels of the University Band have been preselected for the site of Kenya
Advanced Institutes of Science and Technology campus.

Figure 48: Land Use

Zoning
 Each Parcel will consist of Faculty/Staff Residences, Hostels, Lab & Lecture, and
Administration Building.

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Figure 49: Campus Zoning

Campus
 Space per Student (Korean University Regulation)

Table 63: Minimum Floor Area Per Student

Art, music
Arts and natural and physical
Engineering Medical
Science science education
school

Minimum floor
area per student 12 ㎡ 17 ㎡ 20 ㎡ 19 ㎡ 20 ㎡

 Standard area per student is proposed in accordance with “Regulations for University
Establishment and Operation” in Korea.
 We proposed to make the area larger than area per student in “Regulations for University
Establishment and Operation” in light of the higher-than-standard status or norm of EDCF
projects.

 In sum, the floor area per student will be more than 20 ㎡ in consideration of the fact that
the New Institute is a largely engineering-based school.

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 Space per Student in Similar S&T Universities in Korea

Table 64: Floor Area per Student Comparison

KAIST UNIST DGIST POSTECH

45 ㎡/student 58 ㎡/student 87 ㎡/student 127 ㎡/student

 Average area per student of similar S&T-centered universities in Korea such as KAIST and
POSTECH is about 80 ㎡ as shown in the above table.

 The total number of residents (students and faculty/staff) of the Kenya Advanced Institute
of S&T campus is planned to be 1,000.

 In consideration of the total cost, the floor area per student is proposed to be 35 ㎡ which is
about 45% of similar S&T-centered universities in Korea.
 The total floor area to be established in the Kenya Advanced Institute of S&T campus is
35,000 ㎡.

 Master Space Plan

Table 65: Building Space Plan

Div. Total Floor Area(㎡) Remark


Administration BLDG 3,000 ㎡
Library 400 ㎡ 100 people (4 ㎡/person)
Campus Core Approx. 250 seats
Cafeteria 1,000 ㎡
(4 ㎡/person)
Total 4,400 ㎡
Lab / Lecture_1 12,400 ㎡ Faculty facility, Student
Education support facility, Admin
Lab / Lecture_2 8,400 ㎡ support facility
Facility
Total 20,800 ㎡

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Approx. 200 students


Student 3,000 ㎡ ( 15 ㎡/person, Double-bed
Room)
Hostel Married 900 ㎡ 20 Units (45 ㎡/Unit)
Faculty and Staff 5,400 ㎡ 90 units(60 ㎡/Units)
Total 9,300 ㎡
Power Plant 500 ㎡
Etc.
Total 500 ㎡
Total 35,000 ㎡

 The above plan shows the university facilities necessary to establish and operate the
university in the initial phase.
 It consists of three separate buildings consisting of the campus core, the educational facility,
and a hostel. Note that the educational facility includes the lecture rooms, seminar rooms,
labs, and offices used by the students and faculty/staff members. When the university
gradually develops, additional buildings need to be built to meet the expanding needs of
research, education, and university administration.

 The floor area for educational facility is 20,800 ㎡, about 60% of the total area, to
accommodate the needs of a research-centered university.
 The hostel is proposed to accommodate the residential needs of the student and faculty/staff
members of the university residence given the location of the campus (Konza Technology
City). It is planned to be 9,300 ㎡ which is about 25% of the total floor area.

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Figure 50: Campus Plan

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Figure 51: Aerial View of Campus

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Academic Program and Size

 Administration Building

Table 66: Areas for Academic Programs

Total use
Item Use area NO. of Rooms
area
Office 60 ㎡ 1 60 ㎡
Chancellor’s Office Recess room 30 ㎡ 1 30 ㎡
Secretary room 60 ㎡ 1 60 ㎡

Vice Chancellor’s Office 45 ㎡ 3 135 ㎡


Office Secretary room 10 ㎡ 3 30 ㎡
Head office 30 ㎡ 10 300 ㎡

Administrative Office 90 ㎡ 10 900 ㎡


Offices Storage 10 ㎡ 10 100 ㎡
Meeting room 20 ㎡ 10 200 ㎡
Admissions
office 30 ㎡ 1 30 ㎡
Etc.
Control center 90 ㎡ 1 90 ㎡
Exclusive use area 1,935 ㎡
Common use area 1,065 ㎡
Total area 3,000 ㎡

 Administration building has been planned better than regulations of “Universities Standards
and Guidelines, 2014” from CUE.

 Chancellor’s office has an area of 60 ㎡ and Vice chancellor’s office has an area of 45 ㎡.
Make these rooms comfortable.
 Administrative offices have been planned considering organization of university.

 Cafeteria

Table 67: Area of the Cafeteria

Item Use area NO. of Rooms Total use area

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Cafeteria 500 ㎡ 1 500 ㎡


Faculty cafeteria 15 ㎡ 5 75 ㎡
Kitchen 270 ㎡ 1 270 ㎡
Exclusive use area 845 ㎡
Common use area 155 ㎡
Total area 1,000 ㎡

 The campus will have an open cafeteria that is 500 ㎡ large and has more than 250 seats.

 Five faculty cafeteria have been planned with each of the area of 15 ㎡. This space shall be
flexible to combine rooms, if necessary.

 Educational Facility
Table 68: Area of the Educational Facility

NO. of Total use


Item Use area
Rooms area
Faculty Lab 30 ㎡ 35 1,050 ㎡
Faculty Facility
Student Lab 130 ㎡ 30 3,900 ㎡
Common Lab Basic & common lab 300 ㎡ 3 900 ㎡
5 rooms/dept. 60 ㎡ 15 900 ㎡
Lecture rooms Common lecture
room 160 ㎡ 3 480 ㎡
Faculty
Facility Seminar rooms 6 rooms/dept. 30 ㎡ 21 630 ㎡
Faculty meeting
room
3 rooms/dept. 90 ㎡ 10 900 ㎡
Faculty
1 room/dept. 160 ㎡ 4 640 ㎡
conference room
Common
equipment room
2 rooms/dept. 90 ㎡ 6 540 ㎡

Total 9,940 ㎡
Archive room 1 room/dept. 90 ㎡ 2 180 ㎡
Student Reading room 1 room/dept. 160 ㎡ 2 320 ㎡
support
Computer room 1 room/dept. 90 ㎡ 2 180 ㎡
facility
Common lounge 1 room/dept. 90 ㎡ 2 180 ㎡
Total 860 ㎡
Admin Dean’s Office 1 room/dept. 30 ㎡ 6 180 ㎡
support
facility Dept. office 1 room/dept. 90 ㎡ 6 540 ㎡

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Technical room 1 room/dept. 90 ㎡ 6 540 ㎡


Storage 1 room/dept. 60 ㎡ 6 360 ㎡
Total 1,620 ㎡
Exclusive use area 12,420 ㎡
Common use area 8,380 ㎡
Total area 20,800 ㎡
 The educational building proposed in the above table meets higher standards than the
regulations of CUE’s “Universities Standards and Guidelines 2014.”
 It has been planned in consideration of the number of department and organization to be set
up in the Kenya Advanced Institute of S&T.

 The Dean’s office has an area of 30 ㎡ and the department office has an area of 90 ㎡. These
rooms, being more spacious than the CUE guideline, will make users feel comfortable.
(CUE “Universities Standards and Guidelines 2014” Dean’s Office: 18 ㎡.)

 Library

Table 69: Area for the Library

Item Use area NO. of Rooms Total use area


Storage 300 ㎡ 1 300 ㎡
Data room 100 ㎡ 1 100 ㎡
Total area 400 ㎡

 The university library will be placed on the first floor of the educational facility to save
space in the initial phase of the campus construction. Later a separate building is
recommended to be built to meet the expanding needs of the university.
 What is proposed here is an open library so as to easy and convenient access of users.

 Hostel and Faculty/Staff Residence

Table 70: Area for the Hostel

Item Use area NO. of Rooms Total use area


Room(double) 21 ㎡ 100 2,100 ㎡
Hostel Laundry room 15 ㎡ 5 75 ㎡
Exclusive use area 2,175 ㎡

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Common use area 825 ㎡


Total area 3,000 ㎡
Room 30 ㎡ 20 600 ㎡
Laundry room 15 ㎡ 2 30 ㎡
Married
Dormitory
Exclusive use area 630 ㎡
Common use area 270 ㎡
Total area 900 ㎡
Room 50 ㎡ 90 4,500 ㎡

Faculty Exclusive use area 4,500 ㎡


Residence Common use area 900 ㎡
Total area 5,400 ㎡

 The Hostel is proposed as the residence for students. It has its own restroom and shower
booth and each unit accommodates two persons. It allows users to rest and study with
comfort.
 A studio type-married dormitory for married student couples will have its own restroom
and shower booth.
 The Faculty Residence is for faculty/staff and their families. Each unit will have a living
room, a bedroom, a restroom and a shower booth.

Laboratory Types
 Typical Plan for Wet Laboratory

Table 71: Laboratory Unit Type Plan

Div. Dry Laboratory Wet Laboratory

Layout

Water
- Applied Applied
proofing

Exhaust General exhaust

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Drainage General Drainage, Separate drain system for laboratory

Fume hood
- Applied Applied
Equipment
Electrical
Floor and wall Ceiling
Supply

- Mechanical Engineering
- Electrical/Electronic
Chemical Engineering
Dept. Engineering
Agricultural Engineering/Biotechnology
- ICT Engineering
- Civil Engineering

 Some departments require wet-type (water-proof) laboratory with fume hood equipment to
meet their technical specifications. As far as the departments are clearly defined, the
laboratories can be specified either wet or dry type system.
 Chemical Engineering and Agricultural Engineering/Biotechnology are assumed to have
wet type laboratory among the initial six departments.
 Laboratory Type Plan (Direct and Indirect)

Table 72: Laboratory Type Plan

Div. Dry Laboratory Wet Laboratory

Diagram

Separate office and laboratory zones;


General Centralized open space for natural ventilation and lighting;
Customized planning
Feature Indirect link between laboratory and Direct link between laboratory and
Lab-Support room Lab-Support room

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 Typical Plan for Dry Laboratory

Figure 52: Dry Laboratory

 This laboratory module will be 6.6m x 9m.


 The proposed laboratory is flexibly designed to respond to future changes in the lab
environment. Lab support protects researchers from dust and polluted air as it is separated
from the lab.
 The dry type laboratory is appropriate for experiments requiring mainly physical and
mechanical operations.

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 Typical Plan for Wet Laboratory

Figure 53: Web Laboratory

 This laboratory module will be 6.6m x 9m.


 The proposed laboratory is flexibly designed to respond to future changes in the lab
environment. The lab support room is combined with the lab to help researchers conduct
experiments easily.
 The wet type laboratory is appropriate for experiments involving living organisms such as
biological experiments.

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Dormitory Unit Type

Table 73: Dormitory Unit Type Plan

Div. Hostel Type Married Type

Layout

Dimension 3.6 x 6 m 4.2 x 7.2 m

Exclusive
21.6 ㎡ 30 ㎡
Area
Exclusive
+ Common 30 ㎡ 45 ㎡
Area
Area per
15 ㎡ 17.5 ㎡
Person

 The building for hostel type and married type is demarcated to preserve the privacy of
personal.
 Married-type has its own dining room. It may be converted into a studio type.

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Faculty/Staff Residence Unit Type

Figure 54: Faculty/Staff Residence Unit Type

 The faculty/staff residence accommodates faculty/staff and their families. It is composed of


a living room, a bedroom, a restroom, a shower booth, a laundry room and a dining room.
 This design is based on the typical residential environment of Kenya.

Code and Regulation


 The proposed site, located in Konza City, has been planned in accordance with KoTDA
standards.
 As detailed guidelines for the University Band is expected to be completed from end of
2015~ early in 2016, the Euro code and US code shall be used for architecture structure.
 Summary of the “University Standards and Guidelines 2014 (Kenya)”
The following Code and Regulation summary is based on CUE’s “University Standards
and Guidelines 2014 (Kenya).”
Further investigation of the code and regulation of the New Institute needs to be
incorporated when educational system is finalized.

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Table 74: CUE Code and Regulation

Division Program Remarks


lecture theaters or lecture rooms
departmental areas, staff offices and seminar
rooms
central administration offices

library

auditorium or lecture theatre

staff common rooms


Minimum facilities for university
student common rooms with indoor recreation
Facilities facilities
PHYL/STD/01 outdoor recreation facilities in form of games
or sports facilities
drainage system, proper sanitation and water
supply
health unit

ICT infrastructure

spaces of worship

a kitchen and cafeteria


Residential university
Dormitories, laundry and storage facilities
1) Administrative hub of the institution.
2) The seat of a university shall have an
Seat of the University = administration block
Seat of the University offices of the Vice Chancellor, and the Deputy 3) located at the main campus;
PHYL/STD/02 Vice Chancellor and other top university 4) Administrative buildings shall be
managers centrally located on the main campus and
must be so situated as to be clearly visible
and accessible from the road approach
600 student=at least 20 hectares
minimum total area set aside for open space
Land Requirements and car park = 1 hectares
PHYL/STD/06 outdoor sports for the first 600 students = at
least 2.5 hectares of land and at least 1 hectare
for every additional 200 students up to a
maximum of 5 hectares
every 8 female=1 W.C

every 10 male=1 W.C

every 25 male students=1 urinal stall Based on daytime use


every 16 students=1 wash hand basin
every 12 students=1 drinking water fountain
and a sanitary disposal facility
Public Health
1 W.C. per every 15 male students;
PHYL/STD/13
1 W.C per every 10 female students;
In a residential university
1 urinal per every 10 students;

1 wash hand basin per every 10 students;

1 bath or shower per every 10 students;

1 bath or shower per every 8 female students;

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1 drinking water fountain for every 20


students; and a sanitary disposal facility.
Lecture Rooms and Offices
PHYL/STD/14 See below for m²/student

See below for m²/student

1 departmental office

1 head of department office: 18 m²

Staff offices and seminar rooms 1 secretary’s office


PHYL/STD/15
1 general office for a staff secretary

1 office for every 2 members of academic staff

shared academic staff: 18 m²

Non-academic staff: 7 m²
auditorium, a large lecture theatre or an
assembly hall
See below for m²/student
PHYL/STD/16
Teaching Laboratories, Hospitals,
Workshops and Studios See below for m²/student
PHYL/STD/17
A university offering Telecommunication
Engineering and related programmes shall
have laboratories with adequate space for Adequate space that is required for all the
digital and analog communication, activities is approximately 630 m² for 160
electromagnetic engineering, control and students, i.e., 3.9375 m² per student.
fiber – optics.
PHYL/STD/25
Food preparation of not less than 0.50 m²per
student
Dish washing and serving areas, of not less
than 0.50 m² per student
Catering and Accommodation Kitchen storage of not less than 0.50 m²per
PHYL/STD/28 student
Kitchen staff and services area of not less than
0.50 m² per student
A dining hall of not less than 1.25 m² of floor
area per student
2 Rooms used as student accommodation
single room, 8.00 m shall house not more than four students
accommodation 2 per room
PHYL/STD/30 double student room or cubicle, 14.00 m
2
three or four student room 18.00 m
cold water storage tank in each building with
sufficient capacity to meet not less than twenty
Utility Services
four hours demand from the building’s users or
PHYL/STD/31
a minimum water demand of 150 liters per day
per person
The building shall be provided with secure
windows; the effective areas of which shall not
be less than 20 % of the floor area of the room
and 75 % of the windows should be open able
Library Facility
to external air;
LIBR/STD/06
Each study space shall occupy between 2.5 and
4 m²
Each stack area for books shall be at least 10.75

.

 Area per student

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Kenya Advanced Institute of Science and Technology Feasibility Study

Table 75: Area per Student

Program Number of students m²/student


0-29 1.9

30-39 1.9

40-59 1.7
Lecture Rooms and Offices
60-99 1.7

100-149 1.7

150-299 1.5

Course m²/student
Arts and Humanities based programs 2.8
Biological and Physical Sciences based
9.0
programs
Human and Veterinary Medicine and
Staff offices and seminar rooms related programs
15.0
Engineering, Surveying and related
10.0
programs
Architecture, Planning, Building
Technology, Design and related 10.0
programs
Social Science based courses 2.8

Assignable space per seat


Number of Seats
in m²
60-100 0.9
Auditorium, a large lecture
theatre or an assembly hall 100-150 0.8

150-300 0.7

>300 0.6

Type of Laboratory m²/student


Agriculture Science Laboratory 2.80 - 3.70

Building Science Laboratory 3.70 - 4.60


Biological Health and Veterinary Science
2.70 - 4.60
Laboratory
Business Management Laboratory 1.90 - 2.80
Teaching Laboratories,
Hospitals, Workshops and Communication Laboratory 2.40 - 3.70
Studios
Education Laboratory 2.40 - 4.60
Engineering Laboratory (excluding
3.70 - 6.50
Mechanical)
Engineering Laboratory (Mechanical) 6.50 - 9.30
Fine Arts, Architecture and Design
2.80 - 4.60
Studio
Nutrition and Dietetics Laboratory 2.80 - 4.60

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Architecture Permits
 NEMA (National Environmental Management Authority) and NCA (National Construction
Authority) currently receive and approve the architectural proposals. It takes about 2 or 3
months to get approval.
 In order to shorten the period of permit acquisition, Konza City is making attempt to amend
the law to enable KOTDA to perform approval by themselves.

Figure 55: Permit Acquisition Process

Similar Project Analysis for Cost Estimation


Strathmore University
Table 76: Strathmore University Fact Sheet

Estimated
Construction
Construction Construction Cost /
Cost / ㎡ Major Construction Materials Used
Completion ㎡
(Year 2007)
(Year 2015)
• Concrete / Concrete Blocks
• Blue & Yellow Natural Quarry Stone hand
dressed on site
• Hollow Brick partitions
• Steel
• Stainless Steel & Recycled Plastic Floor
60,000 Kshs/㎡ System 88,647 Ksh/㎡
2007
(USD 687/㎡) • Glass & Curtain Wall Fittings (Electrical & (USD 1,015/㎡)
Mechanical) & Solar panels (PV & for Hot
Water),
• Floor & Wall Tiles
• Gypsum ceilings & Partitions
• Aluminum Windows & Doors frames with
Flush MDF Doors
(Exchange Rate: 100Ksh = 1.145USD)

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Student lounge Rear entrance

Entrance foyer Main Entrance

Figure 56: Strathmore University Campus Photograph

Figure 57: Strathmore University Business School Blueprints

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Figure 58: Strathmore University Management Science Building Blueprints

Figure 59: Strathmore University Student Center Blueprints

University of Kabianga Kericho Kenya

Table 77: University of Kabianga Kericho Kenya Fact Sheet

Estimated
Construction Cost
Construction Construction
/㎡ Major Construction Materials Used
Completion Cost / ㎡
(Year 2010)
(Year 2015)

• Stone walling
106,000 Kshs/㎡ • Concrete floors and frames 135,286 Ksh/㎡
2010 • Steel Rebars
(USD 1,214/㎡) • Roofing sheets (USD 1,549/㎡)
• Glazed mild steel windows

(Exchange Rate: 100Ksh = 1.145USD)

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Figure 60: University of Kabianga Kericho Kenya

JeonBuk Science University

Table 78: JeonBuk Science University Korea Fact Sheet:

Estimated
Construction Cost
Construction Construction
/㎡ Major Construction Materials Used
Completion Cost / ㎡
(Year 2010)
(Year 2015)

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• THK24 Color Glass


1,950,000 Won/㎡ • Concrete floors and frames 169,249 Won/㎡
2014 • Steel Rebars
(USD 1,905/㎡) • Aluminum Sheets (USD 1,938/㎡)
• Curtain Wall

(Exchange Rate: 1USD = 1,023.41WON)

Figure 61: JeonBuk Science University Korea

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Kenya Advanced Institute of Science and Technology Feasibility Study

Material Cost Analysis


Table 79: Material Cost Analysis

MEDIAN Material
PRICE A* PRICE B* IMPORT/
# ITEMS UNIT Cost in
(KES) (KES) LOCAL KES KRW KOREA
Steel
frames/
Metric
1 Rebar 275,000 140,000 local 207,500 2,456,800 762,500
Ton
/channels
/beams
2 Concrete m3 13,500 14,500 local 14,000 165,700 63,500
Bag
3 Cement 750 1,280 local 1,015 12,000 4,400
(50kg)
4 Sand m3 3,200 4,400 local 3,800 44,900 22,000

5 Brick Each 115 2,000 local 1,057 12,500 300

6 Pea-gravel m3 2,350 4,200 local 3,275 38,700 22,000

7 Glass m2 1,200 2,000 local 1,600 18,900 14,500


Light steel
8 frame m2 800 N/A local 800 9,400 22,100
ceiling
Wood
9 m2 500 600 local 550 6,500 N/A
formwork
Metal
10 window m2 6,500 6,500 local 6,500 76,900 224,000
frame
Concrete
11 m N/A N/A N/A N/A N/A 25,000
piles
Concrete
12 Each 130 120 local 125 1,400 700
blocks
Aluminum
panel
13 (Structural m2 N/A 12,500 local 12,500 148,000 102,300
insulated
panels)
85
1,740 190x190x3
14 Stone m2 [200mm 90 mm local N/A N/A N/A
thick] stone
walling
Asphalt 25,000-
15 Ton 47,000 local 36,000 426,200 800
concrete 32,000
4,500,000
(2x2m for 4,500,00
16 Elevator Each N/A IMPORT 53,280,000 42,785,000
up to 5 0
floors)
Exchange Rate: 1.00 KES = 11.72 KRW = 0.011454USD
* A= cost estimation provided by local architecture firm “L” * B= cost estimation provided by local architecture firm “S”

 This is an estimated construction cost provided by the local architecture firms.


 Most of costs tend to be higher than the Korean market price due to limited supply.

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Labor Cost Analysis


Table 80: Labor Cost Analysis

MEDIAN Labor cost


PRICE A* PRICE B*
# ITEMS UNIT in
(KES) (KES) KES KRW KOREA
Construction
1 daily 1,500 1350 1,425 16,800 105,800
supervisor
Construction
2 daily 400 550 475 5,600 84,200
labor

3 Skilled labor daily 800 700 750 8,800 102,300

4 Assistant daily 400 550 475 5,600 103,500

5 Welder daily 800 700 750 8,800 129,100

6 Mason daily 800 700 750 8,800 122,400

7 Carpenter daily 800 700 750 8,800 123,600

8 Mosaic layer daily 800 900 850 10,000 126,400

9 Painter daily 800 700 750 8,800 115,300

10 Polisher daily 800 700 750 8,800 104,700

11 Plumber daily 1,200 900 1,050 12,400 108,700

Machine
12 daily 1,000 2000 1,500 17,700 112,300
operator

13 Surveyor daily 2,500 1500 2,000 23,600 150,400

Surveyor
14 daily 1,500 850 1,175 13,900 134,500
assistant

15 Electrician daily 1,000 900 950 11,200 150,400

Electrician
16 daily 400 600 500 5,900 134,500
assistant
Exchange Rate: 1.00 KES = 11.72 KRW = 0.011454USD
* A= cost estimation provided by local architecture firm “L” * B= cost estimation provided by local architecture firm “S”

 Kenyan labor cost is much lower than the Korean market price.
 Lack of local special or skilled labor forces and technicians will eventually increase the
average labor costs.

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Kenya Advanced Institute of Science and Technology Feasibility Study

Spon’s African Construction Cost

Table 81: Spon’s African Construction Cost Analysis

2005 2015 Year 1(2016) Year 2(2017) Year 3(2018)


Division (Price per m²) (Price per m²) (Price per m²) (Price per m²) (Price per m²)

KSH USD KSH USD KSH USD KSH USD KSH USD

Universities 56,000 640 91,200 1,040 95,700 1,090 100,500 1,150 105,500 1,200

Colleges 59,000 670 96,100 1,100 100,900 1,150 105,900 1,210 111,200 1,270

Research 59,000 670 96,100 1,100 100,900 1,150 105,900 1,210 111,200 1,270
Facilities

Laboratories 78,000 890 127,000 1,450 133,400 1,520 140,000 1,600 147,000 1,680

Public 62,000 710 100,900 1,150 106,000 1,210 111,300 1,270 116,900 1,330
Libraries

Halls of 60,000 680 97,700 1,110 102,600 1,170 107,700 1,230 113,100 1,290
Residence

Offices 57,000 650 92,800 1,060 97,400 1,110 102,300 1,170 107,400 1,230

Source: Spon’s African Construction Costs Handbook, 2005 (100Kshs = 1.145USD)

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Annual inflation rate: 5% (Based on the building council (JBC) issued by the Architectural
Association of Kenya)

 The construction cost of University of Kabianga Kericho is a bit high due to its location
(about 250KM far from central Nairobi). It is unfit to apply because of high logistic cost.
 The construction cost of Jeon-Buk Science University is a bit high considering Kenyan price
levels.
 After analyzing the material and labor cost, applying this cost is unreasonable due to the
high differences of unit price between Kenya and Korea.
 Given the results of consultation with architecture companies in Kenya and KOTDA, the
construction costs of Strathmore University and Spon’s African Cost Handbook looked
reasonable.
 Cost by facility shall be applied by Spon’s African Construction Cost considering numerous
facilities in campus (1,200USD ~ 1,330USD / m²).

Project Duration and Implementation Schedule for Construction


Project Duration
 Selection of Consultant (3 months)
Notice of Bidding, Preparation/ Evaluation of Proposal (3 months)
In general, selecting consultant for construction will take about 3 months as follows:
preparation of bidding, notice of bidding, period of writing bid document (30days),
evaluation of proposals, and contract agreement.
 Design Stage (9 months)
Basic Design (6 months)
Architectural consultant shall conduct site survey, collect requirements of users,
finalize architectural summary, and obtain basic information necessary for
design and start basic design
Consultant should get approval from PMU on basic design.
Detailed Design (3 months)
It is estimated to take around 3 months to make documentation for detailed
design based on the basic design approved by the Project Management Unit.

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The consultant for construction will prepare the detailed design before
completing the basic design. He will also appoint a local consultant in Kenya to
make collaborative framework.
Local consultant is expected to facilitate the preparation of documentation
through in-depth analysis and review of local environment and regulation.
 Building Permit/ Bidding Preparation (3 months)
Preparation and Acquisition of Building Permit (1 month)
It is estimated that there will be a certain period required for reviews regarding
local codes and permit documents for obtaining building permit, to minimize
revisions and changes which can occur during the permit process
This will be processed after completion of basic design and approval of PMU
which is in charge of project execution, and this period included in detail design
phase.
Since the project is EDCF project executed by Kenya government, it is
necessary to simplify the permit process to a maximum degree, and this should
be stated in the condition of Loan Agreement between the governments of both
countries.
Preparation of Bid Documents (2 months)
Drawings, bidding guideline, BOQ (Bill of Quantity), specification, etc. shall
be quickly prepared so that the bid can begin as soon as building permit is
obtained. This period of 2 months is included in detail design phase.
Construction Bid and Bid Evaluation (Total 3 months: Construction Bid + Bid
Evaluation + Contract Negotiation)
Since it will be impossible to give public notice of bid as soon as the bid
documents are completed and submitted to client in reality, and beside bid
evaluation is completed and preferred company for the contract is selected,
negotiation period is also needed.
The 3 month period assigned here seems not enough, however, the period needs
to be minimized so that this period will not affect the whole period of the
project.
 Construction Period (24 months)
Mobilization (2 months)
After construction contract is concluded, the construction company needs a
preparation period for such as construction start report, selection of sub-
contractor, ground work and temporary construction work, etc.
Architectural consultant shall prepare to start construction supervision, and at
the same time set a cooperation system with local consultant.

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Architectural supervisor will confirm the construction site and review the
commencement report of contractor.
Construction Period (21 months)
It is necessary for architectural consultant to designate full time Korean
construction supervision expert of an appropriate level on-site for the
construction period for the purpose of efficient construction supervision task
and prompt measures to be taken at the time of various conditions, and the cost
for this shall be calculated additionally.
Architectural consultant shall discuss transportation and installation time of
equipment through close cooperation with suppliers, and confirm whether there
is anything to be revised or supplemented through equipment installation and
test operation to give directions to the construction company.
Hand-over (1 month)
After construction is completed, the client shall perform final inspection on
constructed condition in architectural field, education equipment based on the
construction completion documents prepared, so that revisions and
supplementation can be done in an appropriate amount of time and transfer can
be processed for operation without delay.
Architectural consultant shall inspect building(s) and defect lists and guide that
contractor’s repairing defects can be performed thoroughly.

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Kenya Advanced Institute of Science and Technology Feasibility Study

Chapter 8. Project Cost Estimation

Project Cost Overview


Project Cost Summary
 The total project cost is comprised of the construction cost, equipment & facilities purchase,
and consulting fees.
 The F/S Team has also estimated the ten-year operational cost to assist in GoK’s decision-
making for its size of financial commitment to this project.
The total direct project cost is estimated to be $59,460,973 ($49,988,673 for construction
& construction management, and $9,472,300 for equipment & facilities).
The consulting cost is estimated to be $5,153,596 for construction and $4,941,667 for
education and training.
The contingencies costs are estimated to be $6,945,678 with physical contingencies of
$3,477,812 and price contingencies of $3,467,866.
The E/F purchase cost is estimated to be $9,427,300. This includes (i) the purchases for
university-wide E/F including the ERP system ($3,910,000), (ii) the purchases for
departmental common E/F ($4,702,500), and (iii) the experimental E/F ($859,800).
The operational cost is estimated to be $151,684,119 for the one-year pre-phase and the
next ten-years. The size of the endowment fund is recommended to be 10% of the ten-year
operational cost, which is $14,920,318.

Itemized Project Cost


 The following tables list the project costs itemized into two parts: The first part is mostly
funded by EDCF and includes the project cost such as construction, E/F, consulting costs, and
contingencies. The second part is the operational cost that will be taken over by GoK once the
New Institute is ready to be launched.

225
Table 82: Project Cost Summary
(Unit: USD)

EDCF
Item Local
Foreign Currency Portion GoK Total
Currency EDCF Total
Part I Project Cost Korea 3rd Countries Portion
A Direct Cost 17,527,987 25,385,714 16,547,271 59,460,973 59,460,973
A1 Direct Project Cost (Construction) 16,826,187 16,706,214 16,456,271 49,988,673 0 49,988,673
A2 Direct Project Cost (Equipment) 701,800 8,679,500 91,000 9,472,300 0 9,472,300
B Consulting Cost 5,633,607 0 4,461,656 10,095,263 10,095,263
B1 Consulting Cost (Construction) 4,638,760 0 514,836 5,153,596 0 5,153,596
B2 Consulting Cost (Education) 994,847 0 3,946,820 4,941,667 0 4,941,667
D Base Cost 23,161,594 25,385,714 21,008,927 69,556,236 0 69,556,236
E Contingencies 2,007,602 2,654,831 2,283,244 6,945,678 0 6,945,678
F Service Charge [0.1% of EDCF] 76,805 0 0 76,502 0 76,502
G Taxes & Duties [Base Cost*25%] 0 0 0 0 17,389,059 14,865,243
Total (A~G) 25,246,001 28,040,546 23,292,171 76,578,415 17,389,059 91,443,658
Percentage of EDCF 32.97% 36.62% 30.42% 100.00%
Percentage of Total Project Cost 27.61% 30.66% 25.47% 83.74% 19.02% 102.76%
Part II Operational Cost (First 11 Years)
H Operational Cost 151,684,119
Wages & Salaries 77,341,542
Student Affairs 49,423,549
Research Affairs 14,830,000
Current Costs 10,089,028
I Endowment Fund 14,920,318
Total (G+H) 166,604,437
Kenya Advanced Institute of Science and Technology Feasibility Study

227
PART I: Direct Project Cost
Direct Project Cost
Construction & Construction Management Cost
 Construction Cost
The construction cost has been appropriated by the “University Band” infrastructure of
Konza Techno City that is to be completed by 2020. We apply the construction cost of
Spon’s African Construction Costs Handbook by facility types for unit cost calculation.

Table 83: Construction Cost Estimates

Construction cost Construction cost by


Total Floor
Div. per ㎡ facility
Area(㎡)
(USD, Year 3) (USD, Year 3)
University HQ/
Administration 3,000 ㎡ 1,230 3,690,000
BLDG
Campus
Library 400 ㎡ 1,330 532,000
Core
Cafeteria 1,000 ㎡ 1,200 1,200,000
Total 4,400 ㎡ 5,422,000
Lab / Lecture_1 12,400 ㎡ 1,270 15,748,000
Education
Facility Lab / Lecture_2 8,400 ㎡ 1,270 10,668,000
Total 20,800 ㎡ 26,416,000
Student 3,000 ㎡ 1,290 3,870,000
Married 900 ㎡ 1,290 1,161,000
Hostel
Faculty and Staff 5,400 ㎡ 1,360 7,344,000
Total 9,300 ㎡ 12,375,000
Power Plant 500 ㎡ 1,200 600,000
Landscape and Civil **10,000 ㎡
Etc.
Construction (Except in Total 50 500,000
Cost(in Campus) Floor Area)
Total 500 ㎡ 1,100,000
Total 35,000 ㎡ 45,313,000
(Exchange Rate: 100Ksh = 1.145USD)
GoK shall conduct the construction of campus outer roads, trees, street lamp, etc. GoK
shall also conduct the geotechnical and topographical survey for campus.
Due to the nature of EDCF projects, it is difficult to execute a project by Korean contractor
with the same cost where the construction work is executed by the local contractor. For
the purpose of comprehensive management and effective communication among the
Kenya Advanced Institute of Science and Technology Feasibility Study

related organizations and companies, a management team of selected Korean contractor


should be dispatched on the project.
Minimum of around 8%~15% of construction cost should be added as dispatched
management team cost, indirect cost and profit for the Korean construction company. The
dispatched management team cost of USD 3,971,916 (8.03%) is calculated as follows.
Landscape and civil construction cost (on Campus) is the consensus data from local
consultant and KOTDA.

**10,000 ㎡ : Sum of campus quad and landscape area except buildings and future
reserved site area.
After analyzing the construction cost of similar facilities on 2014 from Public Procurement
Service of Korea, the rate of general management cost, profit and overhead is 10.32%.

Table 84: Construction Cost Analysis


(Unit: %)

General management & Profit &


Item
Overhead (%)
New construction for
9.1
OOOO Technical Support Center
New construction for
11
OOOO Support Center
Extension for OOOO University
10.3
Social Integration and education support center
New construction
10.9
For OO Society Building
New construction for OOOO science University
10.3
OO building
Average 10.32

 Construction Management Cost


By the nature of EDCF projects, it is difficult to execute a project by Korean contractor
with the same cost where the construction work is executed by the local contractor. For
the purpose of comprehensive management and effective communication among the
related organizations and companies, a management team of selected Korean contractor
should be dispatched on the project.
Minimum of around 8%~15% of construction cost should be added as dispatched
management team cost, indirect cost and profit for the Korean construction company. The
dispatched management team cost of USD 4,675,673(10.32%) is calculated as follows.

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Table 85: Construction Management Cost


(Unit: USD)

Unit Cost Qty Total


Item Person
(USD) (M/M) (USD)
Architect 11,407 1 24 273,777
Very High-Level
7,904 1 24 189,693
Engineer
Architecture
High-Level Engineer 6,852 3 24 493,309
Middle-Level
5,985 4 24 574,570
Engineer
Very High-Level
Direct 7,904 1 24 189,693
Mechanical Engineer
Labor High-Level Engineer 6,852 1 24 164,436
Cost Very High-Level
7,904 1 24 189,693
Electrical Engineer
High-Level Engineer 6,852 1 24 164,436
Very High-Level
7,904 1 11 86,943
Civil Engineer
High-Level Engineer 6,852 1 11 75,367
Subtotal 2,416,673
Architect 300 1 30Days 24 216,000
Very High-Level
300 1 30Days 24 216,000
Engineer
Architecture
High-Level Engineer 300 1 30Days 24 216,000
Middle-Level
300 2 30Days 24 432,000
Engineer
Very High-Level
Local 300 1 30Days 24 216,000
Mechanical Engineer
Staying
High-Level Engineer 300 1 30Days 24 216,000
Cost
Very High-Level
300 1 30Days 24 216,000
Electrical Engineer
High-Level Engineer 300 1 30Days 24 216,000
Very High-Level
300 1 30Days 10 90,000
Electrical Engineer
High-Level Engineer 300 1 30Days 10 90,000
Subtotal 2,124,000
Airfare(Round Trip) 2,500 9 6Times 135,000

Total 4,675,673

(Exchange Rate: 100Ksh = 1.145USD)


* Labor cost is applied in accordance with the regulations of the KENCA and KIRA(2015)
* The dispatched labor cost is 150% of the Korean domestic labor cost.

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Equipment & Facilities


 The following cost estimation for university equipment & facilities (E/F) is based on the list
of equipment presented in Chapter 5.
 It is recommended that university equipment purchase is to be gradually made. The following
distribution of purchase assumes a gradual buildup of E/F purchase with 40%, 20%, 20%, 15%,
5% of total E/F purchase to be made annually for the first phase of the operation of the New
Institute.
 E/F purchases of the second phase will be made as part of the current costs of the operational
budget.

Pre-Phase Phase I (6 Departments) Total


Item

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5


Equipment & Facilities
1. University-Wide 3,910,000 3,910,000
2. Departmental Common 4,702,500 4,702,500
3. Experimental 859,800 859,800
Total 3,788,920 1,894,460 1,894,460 1,420,845 473,615 9,472,300

Consulting Cost (Construction)


 Architect and Engineer Standard Fees
An estimate criterion for consulting fee is the price on Year 2. Unit price standard for
construction management cost is the price on Year 3.

Table 86: Fluctuation Rate of Engineering Specialists Labor Cost (Recent 5 Years)

Average
2011 2012 2013 2014 2015
Rate (%)
Architect 1.81 1.27 1.45 0.00 1.75 1.26
Very High-Level Engineer 0.16 -0.04 -4.26 0.00 0.93 -0.64
High-Level Engineer 0.26 1.01 -0.16 0.00 1.68 0.56
Middle-Level Engineer -0.13 4.14 3.48 0.00 -3.49 0.80
Junior-Level Engineer 3.50 1.35 5.02 0.22 0.15 2.05

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Table 87: Standard Fees


(Unit: KRW & USD)

2015 Year 1 Year 2 Year 3


KRW USD USD
Architect 340,765 333 337 341 346
Very High-Level Engineer 249,900 244 243 241 240
High-Level Engineer 208,973 204 205 206 208
Middle-Level Engineer 181,229 177 178 180 181
Junior-Level Engineer 140,862 138 140 143 146
*inflation rate 3%; * 1USD=1,023.41WON

Labor cost is applied in accordance with the regulations of the KENCA and KIRA(2015)

 Design Consulting
It is divided into direct labor cost, overhead cost, engineering fee and direct cost.
It is desirable that selected consultant(s) should hire local consultant(s) for acquiring
building permit and detailed design support.
Apply standard unit price for architectural engineering on Year 2.
Master architect and person who is in charge of campus core, education facility, hotel, and
infrastructure are necessary for smooth design progress.
Education facility : Very High Level Engineer(1 person)+Middle Level Engineer(1
person)+Junior Level Engineer(1 person)
Campus core facility : High Level Engineer(1 person)+Middle Level Engineer(1
person)+Junior Level Engineer(1 person)
Hostel facility : High Level Engineer(1 person)+Middle Level Engineer(1 person)+Junior
Level Engineer(1 person)

Table 88: Design Consulting Fees


(Unit: USD)

Unit Cost Qty Total


Item Person
(USD) (M/M) (USD)
Architect 7,511 1 6 45,063
Direct
Very High-Level
Labor Architecture 5,303 1 7 37,123
Engineer
Cost
High-Level Engineer 4,542 2 7 63,593

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Middle-Level
3,958 4 9 142,503
Engineer
Junior-Level Engineer 3,153 4 9 113,521
Professional Engineer 7,511 1 2 15,021
High-Level Engineer 4,542 1 4 18,170
Structural
Middle-Level
3,958 2 6 47,501
Engineer
Professional Engineer 7,511 1 2 15,021
High-Level Engineer 4,542 1 4 18,170
Mechanical
Middle-Level
3,958 2 6 47,501
Engineer
Professional Engineer 7,511 1 2 15,021
High-Level Engineer 4,542 1 4 18,170
Electrical
Middle-Level
3,958 2 6 47,501
Engineer
Professional Engineer 7,511 1 1 7,511
High-Level Engineer 4,542 1 3 13,627
Civil
Middle-Level
3,958 2 5 39,584
Engineer
Professional Engineer 7,511 1 1 7,511
High-Level Engineer 4,542 1 3 13,627
Landscape
Middle-Level
3,958 2 5 39,584
Engineer
Subtotal 765,322
Overhead
110% of Direct Labor Cost 841,854
Cost
Engineering
20% of (Direct Labor Cost+Overhead Cost) 321,435
Fee
Direct Labor Cost Total 1,928,612

Airfare(Round Trip) 2500 7 4Times 70,000

Direct Local Staying Cost 300 7 28Days 58,800


Cost Car Rental 100 3 28Days 8,400

Insurance & Visa Fee 150 7 4Times 4,200

Direct Cost Total 141,400


Very High-Level
2,500 1 3 7,500
Engineer
Direct
High-Level
Labor Architecture 2,000 1 6 12,000
Engineer
Cost
Middle-Level
(Local 1,800 1 6 10,800
Engineer
Consultant)
High-Level
Structural 2,000 1 3 6,000
Engineer

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High-Level
Mechanical 2,000 1 6 12,000
Engineer
High-Level
Electrical 2,000 1 6 12,000
Engineer
High-Level
Civil 2,000 1 3 6,000
Engineer
High-Level
Landscape 2,000 1 3 6,000
Engineer
Subtotal 72,300
Overhead
110% of Direct Labor Cost 79,530
Cost
Engineering
20% of (Direct Labor Cost+Overhead Cost) 30,366
Fee
Direct Labor Cost Total 182,196

Total 2,252,208

(Exchange Rate : 1USD=1,023.41WON)


* Local consultant fee have been agreed with the local consultant.

 Bidding & Contract

It is divided into direct labor cost, overhead cost, engineering fee and direct cost.
It is cost for construction bidding by field and support surveying.
Apply standard unit price for architectural engineering on Year 2.

Table 89: Bidding and Contract Fees


(Unit: USD)

Unit Qty Total


Item Person
Cost(USD) (M/M) (USD)
Architect 7,511 1 1 7,511
Architectur High-Level Engineer 4,542 1 3 13,627
e Middle-Level
3,958 1 3 11,875
Engineer
Direct High-Level Engineer 4,542 1 1 4,542
Mechanica
Labor Middle-Level
l 3,958 1 2 7,917
Cost Engineer
High-Level Engineer 4,517 1 1 4,517
Electrical Middle-Level
3,927 1 2 7,854
Engineer
Civil High-Level Engineer 4,517 1 1 4,517
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Kenya Advanced Institute of Science and Technology Feasibility Study

Middle-Level
3,927 1 2 7,854
Engineer
Subtotal 70,215
Overhead
110% of Direct Labor Cost 77,236
Cost
Engineering
20% of (Direct Labor Cost+Overhead Cost) 29,490
Fee
Direct Labor Cost Total 176,941
Airfare(Round Trip) 2500 5 1Times 12,500
Direct Local Staying Cost 300 5 10Days 15,000
Cost Car Rental 100 2 10Days 2,000
Insurance & Visa Fee 150 5 1Times 750
Direct Cost Total 30,250
Total 207,191
(Exchange Rate : 1USD=1,023.41WON)

 Construction Supervision

The supervisors should carry out field survey and inspection and construction supervision
and give technical consulting.
The construction supervision head resides on site for full period of construction. And other
supervisors visit the site for supervision periodically.
Apply standard unit price for architectural engineering on 2019.

Table 90: Construction Supervision Fees


(Unit: USD)

Unit Qty Total


Item Person
Cost(USD) (M/M) (USD)
Architect
7,511 1 24 180,253
(Local Staying)
Architect 7,511 1 12 90,127
Architecture High-Level
4,542 1 24 109,017
Engineer(Local Staying)
Direct Middle-Level Engineer 3,958 1 12 47,501
Labor Junior-Level Engineer 3,153 1 12 37,840
Cost Very High-Level
Structural 5,303 1 6 31,820
Engineer
Very High-Level
Mechanical 5,303 1 9 47,730
Engineer
Very High-Level
Electrical 5,303 1 6 31,820
Engineer

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Very High-Level
Civil 5,303 1 6 31,820
Engineer
Very High-Level
Landscape 5,303 1 12 63,640
Engineer
Subtotal 655,658
Overhead
110% of Direct Labor Cost 721,223
Cost
Engineering
20% of (Direct Labor Cost+Overhead Cost) 275,376
Fee
Direct Labor Cost Total 1,652,257
Airfare(Round Trip) 2500 2 5 Times 25,000
Local Staying Local Staying Cost 300 2 630 days 378,000
Car Rental 100 2 630 days 126,000
Direct
Airfare(Round Trip) 2500 6 6 Times 90,000
Cost
Traveling Local Staying Cost 300 6 42 Days 75,600
Car Rental 200 2 42 Days 8,400
Insurance & Visa Fee 150 7 6 Times 6,300
Direct Cost Total 709,300
Very High-Level
Architecture 2,500 2 12 60,000
Engineer
Direct Structural High-Level Engineer 2,000 1 6 12,000
Labor
Mechanical High-Level Engineer 2,000 1 9 18,000
Cost
Electrical High-Level Engineer 2,000 1 9 18,000
(Local
Civil High-Level Engineer 2,000 1 6 12,000
Consultant)
Landscape High-Level Engineer 2,000 1 6 12,000
Subtotal 132,000
Overhead
110% of Direct Labor Cost 145,200
Cost
Engineering
20% of (Direct Labor Cost+Overhead Cost) 55,440
Fee
Direct Labor Cost Total 332,640
Total 2,694,197
(Exchange Rate : 1USD=1,023.41WON)

Consulting Cost (Education & Training)


Referential Data for Education Consulting Cost Estimation
 The base salary for the foreign (mostly Korean) professors dispatched to Kenya is derived as
the average of the following two figures for each rank of faculty:
 Survey of Full-Time Faculty Salaries of 4-Year Colleges and Universities (Congresswoman
Insook Park's Office, 2013): This survey is based on the reports from 180 schools and 205
campuses, and the most recent data are from 2013.
 Average of the faculty salaries of six engineering fields reported in US Chronicles of Higher
Education (2007~08): This survey contains salary information by field. Six fields relevant to
the New Institute's Programs were chosen for comparison: Agriculture & Agricultural
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Kenya Advanced Institute of Science and Technology Feasibility Study

Engineering, Biological Sciences, Computer Engineering, Mechanical Engineering,


Chemical/Environmental Engineering, and Other Engineering)

Table 91: Salary Information for Different Faculty Ranks


(Unit: USD)

Source Full Associate Assistant


Survey of Full-Time Faculty Salaries of 4- 91,780 74,420 52,210
Year Colleges and Universities, Korea
Faculty Salary Data by Field, US Chronicles
of Higher Education 94,550 71,873 61,612
Average 93,165 73,147 56,911

Training in Kenya
 As evidenced by the experience of many universities, the first three years of establishment of
a new institution is critical for successful management and later expansion. Therefore, it is
recommended that intensive education and training support from the Korean side be given for
the initial three years.
 In this regard, the personnel to help setting up the New Institute must be comprised of the
following ranks:
University President who will be in full charge of the set-up and subsequent management
of the university;
Deans of the three initial faculties (at the rank of Full Professors) who will organize the
academic and student affairs of each faculty;
Chairs of the six initial programs (at the rank of Associate Professors) who will oversaw
the creation of the curriculum, recruitment of faculty members and students, and other
related matters.
Research Technicians who will supervise the purchase of experimental and educational
equipment as well as provide assistance in the use of advanced techniques and equipment.
Administrative Staff who will take charge of administrative functions required to the
effective operation of the initial phase of the New Institute.
 The following table shows the itemized cost distributions for education training that will take
place in Kenya.

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Kenya Advanced Institute of Science and Technology Feasibility Study

Table 92: Cost Estimates for Training in Kenya


(Unit: USD)

Monthly
Trainer Rank Base Salary Cost Person Qty (M/M) Total
President 139,748 11,646 1 36 419,243
Deans (Full Professors) 93,165 7,764 3 36 838,485
Chairs (Associate
Professors) 73,147 6,096 6 36 1,316,640
Research Technicians 43,888 3,657 6 36 789,984
Administrative Staff 26,333 2,194 6 36 473,990
Other Items
Person or Qty (Month
Unit Cost Unit or Year)
Air Fares (1) 4,500 4 18,000
Air Fares (2) 2,500 18 45,000
Lodging
President 450 1 36 16,200
Deans 350 3 36 37,800
Chairs 300 6 36 64,800
Technicians & Staff 250 12 36 108,000
Car Lease 100 5 36 18,000
Insurance & Visa 150 22 3,300
Workshop Expenses* 4,500 28 126,000
Total 3,856,199

Note: (1) The President’s salary is proposed to be 1.5 times the Dean’s salary; (2) Technicians’ salaries
are proposed to be 60% of the Associate Professor salary; (3) Staff salary is proposed to be 60% of the
technician’s salary; (4) Air fares are two-tiered: business class for the President and Deans, and economy
class for others, (2) Workshop participants are all faculty members hired in Year 0 (i.e., 24 professors)
plus Korean professors and technicians.

Training in Korea
 The training of Kenyan faculty members in Korea is also important for the upgrading of their
educational and research skills. The training cost of the following table is designed for the one-
year stay of the half of the faculty recruited in Year 0.
 The course fee is based on KAIST's 2015 Summer Program Course Fee Schedule ($50 per
credit = $150 per course). The campus lodging is based on KAIST's 2015 Dormitory Fee
Schedule.

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 The field trip fee includes car rentals, meals, local accommodations, field sessions,
administrative assistant compensation, etc.

Table 93: Cost Estimates for Training in Korea


(Unit: USD)

Item Unit Cost Person Month Total


Course fees 450 24 8 86,400
Lab experiment fees 200 24 12 57,600
Campus lodging 230 24 12 66,240
Other living expenses 1,500 24 12 432,000
Air fares 2,500 24 60,000
Program Assistants 1,500 2 12 3,000
Item Unit Cost Person Qty Total
Field trip 4,500 24 2 216,000
Total 921,240

 In total, with the 5-year average inflation rate of each country taken into account, the training
cost is summarized as follows.

Table 94: Total Cost for Education Consulting


(Unit: USD)

Adjusted for %
Item Amount Inflation Rate*
Training in Kenya 3,856,199 3,946,820 79.9%
Training in Korea 921,240 994,847 20.1%
Total 4,777,439 4,941,667 100%
* 7.99% for Kenya, 2.35% for Korea (Refer to Table 99)

Contingencies
 Contingencies are the amount to prepare cost increase due to the differences between the point
of project budget estimation and the point of project implementation. Contingencies are
composed of physical and price contingencies.
 For physical contingencies, 5% of the direct costs is applied to prepare against various changes
in the field condition once the project is launched.

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Kenya Advanced Institute of Science and Technology Feasibility Study

For price contingencies, three types of inflation rates – Kenyan, Korean, and the World, each
averaged over five years (2010~2014) – were applied to the portion corresponding to each
country or region. The world average inflation rate is used for construction price contingencies
because it is hard to designate specific countries at this stage for various equipment and other
materials, whereas the US inflation rate was used for the equipment price contingences as most
equipment is likely to be purchased from American companies specialized in advanced
experimental equipment production.

Table 95: Inflation Rates - Kenya, Korea, and the World


(Unit: %)

5-Year
Year 2010 2011 2012 2013 2014 Average
Kenya 3.96 14.02 9.38 5.72 6.88 7.99
Korea 2.96 4.00 2.19 1.31 1.27 2.35
US 1.64 3.16 2.07 1.46 1.62 1.99
World
Average 3.52 4.98 3.73 2.63 2.51 3.47
Source: World Bank’s World Development Indicators 2015

 Contingencies are divided into EDCF (Korean, Third-Countries, Local Currency) and Local
(Kenya) parts considering the change in amounts and prices as well as the ratio by country of
origin.

Table 96: Ratio by Country of Origin


(Unit: %)

Foreign Currency Portion Local


Ratio by Country of Origin 3rd Currency
Korea Portion
Countries
Ratio (Construction) 33.66% 33.42% 32.92%
Ratio (Equipment) 7.41% 91.63% 0.96%
Ratio (Construction Consulting) 38.93% 30.30% 30.78%
Ratio (Education Consulting) 20.13% 0.00% 79.87%

Table 97: Physical Contingencies


(Unit: USD)

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Foreign Currency
Budget (USD)
Physical Portion Local
Contingences Currency
3rd EDCF
Total Cost 5% Korea Countries Total

Construction 49,988,673 2,499,434 841,309 835,311 822,814 2,499,434


Equipment 9,472,300 473,615 35,090 433,975 4,550 473,615
Consulting
(Construction) 5,153,596 257,680 100,306 78,068 79,306 257,680
Consulting (Training) 4,941,667 247,083 49,742 0 197,341 247,083
Total 69,556,236 3,477,812 1,026,447 1,347,354 1,104,011 3,477,812

241
Table 98: Price Contingencies
(Unit: USD)

Year 1 Year 2 Year 3 Year 4 Year 5


Item Foreign Currency Portion Local Foreign Currency Portion Local Foreign Currency Portion Local Foreign Currency Portion Local Foreign Currency Portion Local
Korea 3rd Countries Currency Korea 3rd Countries Currency Korea 3rd Countries Currency Korea 3rd Countries Currency Korea 3rd Countries Currency
Construction 0 0 0 0 0 0 2,650,124 2,631,229 2,591,863 12,657,345 12,705,701 13,061,950 2,775,910 2,817,248 3,022,668
Equipment 0 0 0 0 0 0 147,378 1,822,695 19,110 226,253 2,788,468 30,956 385,933 4,739,961 55,716
Consulting (Construction) 0 0 0 526,605 409,858 416,356 646,749 508,918 539,555 661,920 526,600 582,673 338,723 272,448 314,618
Consulting (Training) 0 0 0 0 0 0 208,918 0 828,832 427,637 0 1,790,135 437,668 0 1,933,193
Yearly Sum 0 1,352,819 12,595,371 45,459,637 17,094,087
Total 76,501,913
Price Contingency 3,467,866

* The World Average inflation rate (3.47%) was applied for the 3rd Countries except the Equipment to which the US inflation rate (1.99%) was
applied.

Table 99: Physical & Price Contingencies (Total)


(Unit: USD)

Foreign Currency Portion


Local Currency
EDCF Total
Korea 3rd Countries Portion

2,007,602 2,654,831 2,283,244 6,945,678


Country of Origin
 Construction
 Korean construction material shall be selected if material isn’t manufactured in Kenya and /or
to improve performance of architecture.
 Using Korean material is encouraged to secure the architectural performance and promote
Korean product due to the fact that material quality in Kenya is a bit low especially in window,
finishing ant etc.
 Main material such as cement, rebar, sand, brick and etc. have better been selected that have
been manufactured in Kenya. Using the main material from 3rd country or Korea causes cost
increase and unstable supply.
 Material from 3rd country is reasonable if material cost is high in Kenya and/or material causes
high transport fee.
 Shares rate of construction cost have been planned; 33.66% in Korea, 33.42% in 3rd country
and 32.92% in Kenya.

Table 100: Shares Rate of the Construction Cost


(Unit: %)

Shares Rate of Construction Cost Shares Rate of Construction Cost

Rate Rate
Type Detail Type Detail
(%) (%)
Common Temporary Work 1.69 Waste Water Plumbing Work 1.18

Temporary Work 3.63 Floor Panel Work 0.02


Mechanical
Earth & Ramming Ground Work 1.51 (include Storm-Water Stroage Work 0.50
mechanical,
Reinforced Concrete Work 12.86 fire safety and Geothermal Installation(sub-contract) 10.49
geothermal)
Masonry Work 2.31 Extinguishment Equipment Work 0.99
Architecture
(include civil
Stonemasonry Work 5.70 Total 16.22
and
landscape)
Tile Work 1.70 Outdoor Electricity Lead-in Work 0.65

Waterproof Work 2.00 Power Substation Work 0.27


Electrical
(include
Metal Work 6.41 Electricity Line Work 1.10
electric and
fire safety)
Plastering Work 3.05 Power Equipment Work 0.51

Window Work 3.77 Lighting Equipment Work 3.45


Kenya Advanced Institute of Science and Technology Feasibility Study

Glass Work 3.05 Electric Heating Equipment Work 1.52

Painting Work 1.28 HVAC Work 0.32

Interior Finishing Work 8.00 Emergency Lighting Equipment Work 0.40

Interior Work 3.95 Outdoor Lamp Equipment Work 0.11

etc. Work 2.36 Lightning Protection & Grounding 0.32

Cost of Aggregate and Transport 0.53 CABLE TRAY Equipment Work 0.39

By-Product -0.08 Power Control Equipment Work 0.05

sub-Civil Work 2.95 Demolition Work 0.05

sub-Landscape Work 1.77 Electric & Fire Protection Work 1.78

Total 68.44 Total 10.92

Equipment Installation Work 0.31 Telecommunication Work 2.29

Outdoor Plumbing Work 0.11 CATV Equipment Work 0.46

Mechanical Plumbing Work @ Machine Room 0.74 Broadcasting Equipment Work 0.90
Tele-
(include
Heating Pipe Work 0.11 communication Emergency Bell Equipment Work 0.16
mechanical,
fire safety and
geothermal) Ventilation Duct Work 0.08 CABLE TRAY Installation Work 0.61

Sanitary Fixture Work 0.77 Total 4.42

Hot & Cold Water Plumbing Work 0.92 Grand Total 100.00

Legend ** ■ : Korea / ■ : 3rd Country / ■ : Kenya


Source: 2014 Construction Cost Analysis by Public Facility Type (Public Procurement Service of
Korea)

 Equipment & Facilities


While many advanced scientific instruments and equipment are produced by companies
of relatively more developed countries, some can be procured directly in Kenya. The
following table shows the summary of equipment purchase by country of origin, followed
by the detailed distribution for each type of E/F.

Table 101: Country of Origin Distribution for Equipment


(Unit: USD & %)

Foreign Currency Portion Local


Classification Currency Total
Korea 3rd Countries Portion
University-Wide E/F 460,000 3,450,000 0 3,910,000
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Departmental Common E/F 137,000 4,565,500 0 4,702,500


Experimental E/F 104,800 664,000 91,000 859,800
Total 701,800 8,679,500 91,000 9,472,300
(%) 7.41% 91.63% 0.96% 100%

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Table 102: University-Wide E/F by Country of Origin


(Unit: USD)

EDCF
Local
Foreign Currency Portion
Currency GoK Total
No Name Maker or Model No. Price (US$) Korea 3rd Countries Portion
1 X-ray Photoelectron Spectroscopy Thermo Scientific / K-Alpha 400,000 400,000 400,000
2 LC-MS Varian / 1200L 120,000 120,000 120,000
3 NMR Bruker / AVANCE III 400 150,000 150,000 150,000
4 Thermogravimetric Analyzer Ta Instruments / Auto Q500 40,000 40,000 40,000
5 Differential Scanning Calorimeter Perkin Elmer / DSC4000 40,000 40,000 40,000
6 Dispersive microRaman UniRAMII 30,000 30,000 30,000
7 FT/IR Spectrometer Jasco / FT/IR-6300FV 30,000 30,000 30,000
ICP-MS for planetary material
8 Perkin Elmer / NexION 300X 120,000 120,000 120,000
analysis
9 HR FE-SEM Hitachi / SU8010 100,000 100,000 100,000
Cold Type Field Emission Scanning
10 Hitachi / S-4800 250,000 250,000 250,000
Electron Microscope
High Resolution X-Ray
11 Diffractometer for SiC single crystal Rigaku / SmartLab 200,000 200,000 200,000
quality evaluation
12 Digital Oscilloscope Teledyne LeCroy / wr606zi 30,000 30,000 30,000
High-Resolution Gas Chromatograph-
13 Leco / Pegasus GC-HRT 350,000 350,000 350,000
Mass Spectrometer
14 Confocal Microscope Lasertech / H12 40,000 40,000 40,000
15 UV-Vis-NIR Spectrophotometer Agilent Technologies / G9825A 30,000 30,000 30,000
Particle Sizing Systems(PSS) /
16 Particle size analyzer 20,000 20,000 20,000
AccuSizer 780A
Total 1,950,000 1,950,000 1,950,000
University ERP System
No Name Maker or Solution Price (US$)
Administration & Student Affairs
1 Oracle ERP, etc 1,500,000 1,500,000 1,500,000
Information Management
2 Group Portal/ SSO Email System, Portal 200,000 200,000 200,000
3 WEB Server(SW, HW) Apache, IBM/HP 50,000 50,000 50,000
4 WAS Server (SW, HW) Oracle, Sybase 100,000 100,000 100,000
5 Storage Hitachi/EMC, SAN 50,000 50,000 50,000
6 Back-up Veritas, Avamar 20,000 20,000 20,000
7 Network LAN Switch 20,000 20,000 20,000
8 Security Firewall (Web, DB) 20,000 20,000 20,000
Total 460,000 3,450,000 3,910,000
Grand Total 3,910,000

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Table 103: Departmental Equipment by Country of Origin


(Unit: USD)

EDCF
Local
Foreign Currency Portion
Currency GoK Total
No Name Maker or Model No. Price (US$) Korea 3rd Countries Portion
Mechanical Engineering
1 Lathe Hachon HL-380-750 3set 51,000 51,000 51,000
2 Milling Machine Hachon HMV-1100 3set 60,000 60,000 60,000
3 CAD/CAM 2 set 7,000 7,000 7,000
4 bench drilling machine SMD-360 1set 1,000 1,000 1,000
5 CNC Lathe CUTEX-160 1set 45,000 45,000 45,000
6 Band sawing machine WBS-320S 4,500 4,500 4,500
7 Stage unit Toshiba / 1x2000_6 150,000 150,000 150,000
Surface Roughness Measuring
8 Kosaka / SE3500 76,000 76,000 76,000
Instrumen
Agilent Technologies / Cary 5000 UV-
9 Universial Measurement System 100,000 100,000 100,000
Vis-NIR
10 Dynamic Materials Testing Machine Instron Corporation / 7860 150,000 150,000 150,000
Total 309,500 309,500 309,500
Electrical/Electronics Engineering
1 pulse pattern generator Keysight / N4960A N4951B-H32 80,000 80,000 80,000
2 Pcket generator Ixia / LSM1000XMVDC4-01 85,000 85,000 85,000
3 Vector Signal Generator Agilent Technologies / E4438C 55,000 55,000 55,000
4 Vector Signal Analyzer Agilent Technologies / E4440A 100,000 100,000 100,000
5 Spectrum Analyzer Agilent Technologies / E4443A 120,000 120,000 120,000
Semiconductor characterization
6 Keithley Instruments / 4200-SCS 35,000 35,000 35,000
system
7 network analyzer Agilent Technologies / E5071C 42,000 42,000 42,000
Real Time Digital Simulator for Opal-rt Technology / OP4500C-
9 83,000 83,000 83,000
electrical power eDRIVEsim
10 RLC Load Combination RLC LOAD_0001 100,000 100,000 100,000
11 Precision Power Analyzer Yokogawa / WT3000 150,000 150,000 150,000
Total 850,000 850,000 850,000
ICT Engineering
Baseband generator and channel
1 Agilent Technologies / N5106A 100,000 100,000 100,000
emulator
EnvisionTEC / Perfactory3 SXGA+
2 Rapid prototyping system 320,000 320,000 320,000
Standard
3 DMB Video Encoder KME-A10 45,000 45,000 45,000
4 Digital TV Signal Analyzer Rohde&Schwarz / MPEG-2,4 Player 53,000 53,000 53,000

5 SoC platform Pro Design Electronic 210,000 210,000 210,000


6 Serial Data Analyzer Teledyne LeCroy 90,000 90,000 90,000
Total 818,000 818,000 818,000

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Chemical Engineering
1 Microwave Organic Synthesizer MODEL 356000 70,000 70,000 70,000
2 PL Measurement System 100,000 100,000 100,000
3 UV-VIS-NIR Spectrophotometer SHIMADZU UV-3600 90,000 90,000 90,000
4 Hermetically Sealed System KK-021-AS with monitoring system 60,000 60,000 60,000
NICOMP 380 Sub-Micron Particle
5 100,000 100,000 100,000
Sizer
Organic & Thermal Evaporation
6 80,000 80,000 80,000
System
7 Hermetically Sealed System MODEL KK-021-AS 55,000 55,000 55,000
8 X-ray Diffractometer System 80,000 80,000 80,000
Physical and Chemical Absorption
9 BELSORB-MAX 150,000 150,000 150,000
System
Total 785,000 785,000 785,000
Civil Engineering
Model Mobile Loading System 1/3
1 Mls Test Systems Pty Ltd / MMLS3 170,000 170,000 170,000
scale
2 Infrared diagnostic system Nippon Avionics / h2640 83,000 83,000 83,000
Pine Instrument Company / AFG2
3 Portable Gyratory Compactor 70,000 70,000 70,000
SUPERPAVE Gyratory Compactor
Verdi, Avantes-bl / Blue laser405nm,
4 Acoustic Doppler Current Profiler 35,000 35,000 35,000
Spectrometer
Window performance measurement
5 KS F 2295 137,000 137,000 137,000
system
6 Road Survey Equipment 40,000 40,000 40,000
7 Density tester 30,000 30,000 30,000
8 Soft ground simulator 40,000 40,000 40,000
9 Heavy weight deflectometer KUAB / KUAB 240-1M 100,000 100,000 100,000
10 Particle Image Velocimetry Dantec Dynamics / PIV 150,000 150,000 150,000
Total 855,000 137,000 718,000 855,000
Agricultural Biotechnology
1 Confocal Microscope Witec / Alpha300RS 110,000 110,000 110,000
Becton Dickinson And Company /
2 Fluorescence-activated cell sorting, 400,000 400,000 400,000
FACSAria III
3 Ultra-centrifuge Beckman Coulter / Optima XE-100 100,000 100,000 100,000
4 Fast Protein Liquid Chromatography Ge Healthcare / AKTA PURE M 110,000 110,000 110,000
5 Ice maker Manitowoc SD-3303W3 3320 Lb 30,000 30,000 30,000
Total 750,000 750,000 750,000
Grand Total 137,000 4,565,500 0 4,702,500

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Kenya Advanced Institute of Science and Technology Feasibility Study

Table 104: Experimental Equipment by Country of Origin


(Unit: USD)
EDCF
Local
Fore ign Curre ncy Portion
Curre ncy GoK Total
No Name Maker or Model No. Price (US$) Kore a 3rd Countrie s Portion
Mechanical Engineering
1 Muffle Box Furnace AJ-MB3-1-4 1 set 12,000 12,000 12,000
2 Digital Micronanometer FC012-4 5 sets 37,500 37,500 37,500
3 Tensile testing machine DEC 1T 1 set 25,000 25,000 25,000
4 Micro Vickers Hardness Tester 1 set 35,000 35,000 35,000
5 Signal Conditioning Amplifier 2100-4CHAN 8 sets 64,000 64,000 64,000
6 Photo Microscope System 1 set 9,000 9,000 9,000
7 Universal Testing Machine ADHU-50TC 45,000 45,000 45,000
8 Chary Impact Testing Machine DYD-103D 12,000 12,000 12,000
9 Suction Type Wind Turnnel SDW-300S 25,000 25,000 25,000
10 Michelson interferometer, Hologram 35,000 35,000 35,000
11 PC 10 sets 10,000 10,000 10,000
Total 309,500 299,500 10,000 309,500
Electrical/Electronics Engineering
1 Oscilloscope [Tektronix] TDS2022C 2,500 2,500 2,500
2 Function Generator [Tektronix] AFG3022C 4,000 4,000 4,000
3 Power Supply [ED] ED-333E 600 600 600
4 Multimeter [EZ Digital] DM-442B 350 350 350
CPU i5-4690, RAM 4GB, SSD
5 PC 700 700 700
256GB, Windows 8.1 Pro
6 Monitor 19" 200 200 200
Total Sum(1~6) times 10 sets 83,500 74,500 9,000 83,500
ICT Engineering
CPU i5-4690, RAM 4GB, SSD
1 PC 700 700 700
256GB, Windows 8.1 Pro
2 Monitor 19" 200 200 200
Total 40 sets 36,000 36,000 36,000
Chemical Engineering
n-butane, iso-butane adsorption with
1 Ilhae system 8,600 8,600 8,600
molecular sieve 5A Volumetric
2 Schlenk line and reactor Han-tek 12,600 12,600 12,600
Constant temperature water bath and
3 2,000 2,000 2,000
reactor
4 Coupled tanks workstation Youngil system 40,000 40,000 40,000
5 Constant temperature water bath Seokwang scientific 1,600 1,600 1,600
6 Tensiometer Huecom system 13,000 13,000 13,000
Gel electrophoresis and imaging
7 BMS, Koram biotek 12,000 12,000 12,000
system
8 Stirrer, rotary evaporator Seokwang scientific 15,000 15,000 15,000
Total 785,000 785,000 785,000
Civil Engineering
CPU i5-4690, RAM 4GB, SSD
1 PC 700 700 700
256GB, Windows 8.1 Pro
2 Monitor 19" 200 200 200
Total 40 sets 36,000 36,000 36,000
Agricultural Biotechnology
Eppendorf Xplorer® , single-
1 Pipette 3,000 3,000 3,000
channel(10sets)
HID Veriti® 96-Well Thermal
2 Polymerase Chain Reaction 10,000 10,000 10,000
Cycler, 0.2 mL
3 Spectrophotometer Jasco / V-67 40,000 40,000 40,000
4 Ph meter PPH-2108-S400NB(10set) 10,000 10,000 10,000
5 Micro Balance Mettler Toledo MX5 Microbalance 12,000 12,000 12,000
6 Stirrer Mixer MS-300(10set) 3,000 3,000 3,000
7 Shaker H1010 Incu-Shaker 10L 10,000 10,000 10,000
8 Laboratory Refrigerators Thermo Scientific™ Revco™ 12,000 12,000 12,000

9 Electrophoresis system Perkin Elmer / Labchip GX Touch-24 45,000 45,000 45,000

Total 145,000 145,000 145,000


Grand Total 104,800 664,000 91,000 859,800

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Kenya Advanced Institute of Science and Technology Feasibility Study

Part II: Detailed Operational Costs


Assumptions and Referential Data for Operational Cost Estimation
 The estimation of operational costs for the New Institute largely followed the schemes of
KAIST and other top universities in Korea as summarized in the following table. They are
generally divided into: (i) wages & salaries, (ii) student affairs, (iii) research affairs, and (iv)
current costs.

Table 105: Operational Cost Classifications of Top Korean Universities

KAIST POSTECH Seoul National University


Wages &  Faculty salary Wages &  Faculty/staff Wages &  Faculty salary
Salaries  Staff salary Salaries salary Salaries  Staff salary
 Research salary  Retirement  Faculty/staff
package salary for
 Other affiliated
incentives primary &
secondary
schools
Student  Scholarship Student  Scholarship Student  Scholarship
Affairs  Student Costs (intramural & Costs  Other fees
research extramural)  Thesis/
programs  Experiment dissertation
 Student support fee review fees
experiment fees  Admission
review fees
Research  Funding for General  Electricity, Operation  E/F
Affairs research Manage- water & Management
activities ment  Communica- Manage-  General
tion ment Management
 Heating
 Taxes & fees
 Transportation
 Publication
 etc.
Facility  Building
Manag- management
ement  Equipment
management
 Landscape
management
 Facility
services
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Kenya Advanced Institute of Science and Technology Feasibility Study

 Insurance,
leasing, etc.
Current  Water, Operation  Welfare
Cost electricity support
 Cleaning  Public relations
 E/F  Event, meeting
Maintenance cost, etc.
 Administrative
Operation
 Non tenure-
track faculty
 IT management
 Utilities, taxes,
etc.
Admission  Admission
management
Source: POSTECH, Accounting & Budget Plan (2015); Seoul National University, Public
Disclosure of Management Performance (2015)

 According to the Kenya Central Bank, the wage growth rate is 4.7%, the inflation rate is 3.6%,
the NPV conversion rate is 6.5%, and the economic growth rate is 5% as of 2012. Therefore,
the operation cost estimation applies these rates to calculation of yearly wages & salaries as
well as to contingency costs.
 Other assumptions for the operational cost estimation with supporting data are listed below. In
particular, the referential data for faculty salaries are presented separately. It is notable that the
average faculty salary of Kenya’s public universities has almost doubled over the span of five
years.

Table 106: Key Assumptions for Operational Cost Estimation

Item Content Notes


Student  20 students per MS (2 years of  KAIST admitted the first MS students in
Recruit- enrollment) 1973 and the first PhD students in 1975.
ment  5 students per PhD (4 years of
enrollment)
 Two-year lag in creation of PhD
programs after MS
Faculty  Ranges from 4 for the initial set-up  The faculty size of 10 is typically considered
Size phase (Phase 0) to 10 per department as the critical threshold of a stable academic
on average in regular phases (Phases department.
I and II)
Staff Size  Based on the 1:0.7 ratio of the  KAIST’s faculty-staff ratio is 1:0.8.
faculty-staff ratio

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Kenya Advanced Institute of Science and Technology Feasibility Study

 The average faculty-staff ratio of top 4


Kenyan universities is 1:0.36 (Mwira, et al.
2007).
Exchange  0.5 exchange faculty members to  Note that the cost for Korean faculty dispatch
Faculty Korea per department to Kenya is much higher.
Size  0.5 exchange faculty members per
department to Kenya for Phase I, 0.4
for Phase II
Faculty &  $130,000 for the President  The president’s salary is typically three times
Staff  $64,000 for regular faculty on that of average regular salary in Korea.
Salaries average  The faculty salary of KAIST at the time of its
 $25,600 for technical staff on foundation was almost three times that of top
average universities in Korea.
 $19,200 for administrative staff on  The faculty salary in Kenya includes housing
average allowances.
 Retirement benefits costing 50% of  With the 33% salary and 17% housing-
the sum of the salaries across all allowance raise negotiated in 2014 between
types of faculty/staff  Assumed to the state universities and three academic
incur in Phase II workers’ unions, the most senior professors
earn a consolidated monthly pay of around
US$3,300, while junior professors make
US$1,757 (Munene 2014).
 Kenya’s Public Pension Scheme is on the
defined benefits (DB) basis, which targets
75% of basic salary after 30 years of service
or 50% of the total remuneration.
Exchange  $20,000 for Kenyan faculty to Korea  Korean exchange faculty salary is
Faculty  $70,000 for Korean faculty to Kenya substantially higher due to the much higher
Salary living standards of Korea.
Research  $20,000 for basic faculty research  KAIST like other top-notch universities offer
Support support competitive start-up research funds for
incoming faculty members, ranging from
$40,000 to $300,000 depending on field and
specialty.
Student  $6,000 for MS students  This includes tuition, living expenses, and
Cost  $12,000 for PhD students research support.
Current  5% of the sum of Wage/Salaries,  KAIST’s current cost is 5% of the sum of
Cost Research Affairs, and Student those three items.
Affairs for Phase I
 8% of the same sum for Phase II

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Kenya Advanced Institute of Science and Technology Feasibility Study

Table 107: Faculty Salaries of Kenyan Public Universities (2009)

(Unit: USD)

Associate
Rank Senior Lecturer Full Professor
Professor
Basic Salary Monthly Yearly Monthly Yearly Monthly Yearly
Low 500 6,000 630 7,560 670 8,040
High 650 7,800 820 9,840 960 11,520
Basic Salary Average (A) 575 6,900 725 8,700 815 9,780
Housing Allowance (B) 460 5,520 500 6,000 530 6,360
Sum (A+B) 1,035 12,420 1,225 14,700 1,345 16,140
Average of All Ranks 14,420
Source: University World News (September 2009, www.universityworldnews.com)

Table 108: Faculty Salaries of Kenyan Public Universities (2014)

(Unit: USD)

Rank Senior Lecturer Full Professor


Monthly Yearly Monthly Yearly
Basic Salary (A) 1,549 18,582 2,425 29,095
Housing Allowance (B) 649 7,792 812 9,740
Sum (A+B) 2,198 26,374 3,236 38,835
Average of All Ranks 32,605
Source: Standard Digital News (March 2014, www.standardmedia.co.ke)

253
Estimates of Each Component of Operational Costs

Table 109: Cost Estimation for Wages & Salaries


(Unit: USD)

Pre-Phase Phase I (6 Departments) Phase II (10 Departments) Total


Item
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5
I. Wages & Salaries
1 1 1 1 1 1 1 1 1 1 1
President
130,000 130,000 130,000 136,110 142,507 149,205 156,218 163,560 171,247 179,296 187,723 196,546 1,742,411
24 24 36 48 60 76 76 84 92 100 100
Faculty (#) 64,000 64,000 64,000 67,008 70,157 73,455 76,907 80,522 84,306 88,269 92,417 96,761
1,536,000 1,536,000 2,412,288 3,367,554 4,407,286 5,844,943 6,119,656 7,081,730 8,120,721 9,241,733 9,676,095 59,344,005
0 5 5 5 5 5 10 10 10 10 10
Staff (Research) (#) 25,600 25,600 25,600 26,803 28,063 29,382 30,763 32,209 33,723 35,307 36,967 38,704
0 128,000 134,016 140,315 146,910 153,814 322,087 337,225 353,075 369,669 387,044 2,472,155
0 12 12 12 12 12 30 30 30 30 30
Staff (Dept) (#) 19,200 19,200 19,200 20,102 21,047 22,036 23,072 24,157 25,292 26,481 27,725 29,028
0 230,400 241,229 252,567 264,437 276,866 724,696 758,757 794,418 831,756 870,849 5,245,974
4 5 13 22 30 41 25 31 36 42 42
Staff (Univ) (#) 19,200 19,200 19,200 20,102 21,047 22,036 23,072 24,157 25,292 26,481 27,725 29,028
76,800 94,080 267,362 456,725 663,297 952,880 608,745 778,990 963,894 1,164,458 1,219,188 7,246,418
Staff's Retirement Benefit 198,469 228,199 260,285 294,883 308,743
Sub-Total (I) 1,742,800 2,118,480 3,191,005 4,359,667 5,631,135 7,384,720 8,137,212 9,356,148 10,671,689 12,090,223 12,658,464 77,341,542

 Faculty salary was initially proposed to be 40,000USD. It was adjusted based on the comments of the Kenyan PIT that suggested
55,000USD as well as those from the final review.
Kenya Advanced Institute of Science and Technology Feasibility Study

Table 110: Cost Estimation for Student Affairs


(Unit: USD)

Pre-Phase Phase I (6 Departments) Phase II (10 Departments) Total


Item
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5
II. Student Affairs
0 120 240 240 240 240 380 520 520 520 520
MS Students (#) 6,000 6,000 6,000 6,282 6,577 6,886 7,210 7,549 7,904 8,275 8,664 9,071
0 720,000 1,507,680 1,578,541 1,652,732 1,730,411 2,868,589 4,109,932 4,303,099 4,505,345 4,717,096 27,693,425
0 0 0 30 60 90 150 180 230 280 300
PhD Students (#) 12,000 12,000 12,000 12,564 13,155 13,773 14,420 15,098 15,807 16,550 17,328 18,143
0 0 0 394,635 826,366 1,297,808 2,264,675 2,845,338 3,806,588 4,851,910 5,442,803 21,730,124
Sub-Total (II) 0 720,000 1,507,680 1,973,176 2,479,099 3,028,219 5,133,264 6,955,270 8,109,687 9,357,255 10,159,899 49,423,549

 Student costs include all student expenses such as tuition support (i.e., waiver), basic student research fund, and other support. They
were initially proposed to be 4,000USD and 9,000USD. Again based on the comments of the PIT that it must be doubled, the adjusted
costs were used for this calculation.

Table 111: Cost Estimation for Research Affairs

Pre-Phase Phase I (6 Departments) Phase II (10 Departments) Total


Item
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5
III. Research Affairs
III-1. Faculty Research Program
20,000 480,000 480,000 720,000 960,000 1,200,000 1,520,000 1,520,000 840,000 920,000 1,000,000 1,000,000 10,640,000
III-2. Exchange Program
0 6 6 6 6 6 10 10 10 10 10
# of Kenyan Faculty to Korea
20,000 0 120,000 120,000 120,000 120,000 120,000 200,000 200,000 200,000 200,000 200,000 1,600,000
2 3 3 3 3 3 4 4 4 4 4
# of Korean Faculty to Kenya
70,000 140,000 210,000 210,000 210,000 210,000 210,000 280,000 280,000 280,000 280,000 280,000 2,590,000
Sub-Total (III) 620,000 810,000 1,050,000 1,290,000 1,530,000 1,850,000 2,000,000 1,320,000 1,400,000 1,480,000 1,480,000 14,830,000

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Kenya Advanced Institute of Science and Technology Feasibility Study

Table 112: Cost Estimation for Current Costs


Pre-Phase Phase I (6 Departments) Phase II (10 Departments) Total
Item
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5
IV. Current Costs
1. Water/Electricity 29,535 45,606 71,859 95,286 120,503 153,287 305,410 352,628 403,628 458,550 485,967 2,522,257
2. Cleaning, etc. 12,995 20,067 31,618 41,926 53,021 67,446 183,246 211,577 242,177 275,130 291,580 1,430,782
3. E/F Maintenance 17,721 27,364 43,115 57,171 72,302 91,972 183,246 211,577 242,177 275,130 291,580 1,513,354
4. Admin Operation 30,716 47,430 74,733 99,097 125,323 159,418 317,626 366,733 419,773 476,892 505,406 2,623,147
5. Non-TenureTrack Faculty 11,814 18,242 28,743 38,114 48,201 61,315 122,164 141,051 161,451 183,420 194,387 1,008,903
6. IT Management 5,907 9,121 14,372 19,057 24,101 30,657 48,866 56,421 64,580 73,368 77,755 424,204
7. Utilities/Taxes 3,544 5,473 8,623 11,434 14,460 18,394 36,649 42,315 48,435 55,026 58,316 302,671
8. Public Relations 5,907 9,121 14,372 19,057 24,101 30,657 24,433 28,210 32,290 36,684 38,877 263,710
Sub-Total (IV) 118,140 182,424 287,434 381,142 482,012 613,147 1,221,638 1,410,513 1,614,510 1,834,198 1,943,869 10,089,028

 The current cost estimation is benchmarked on the KAIST annual budget. The current cost takes up 8% in case of KAIST, based on
which the share of the current cost for the New Institute is assumed to be 5% for Phase I and 8% for Phase II.

Table 113: Distribution of Current Cost Items

Percentage for Each Item


Current Cost Items
Phase I Phase II
Water/Electricity 25% 25%
Cleaning, etc. 11% 15%
E/F Maintenance 15% 15%
Administration Operation 26% 26%
Non-Tenure-Track Faculty 10% 10%
IT Management 5% 4%
Utilities/Taxes 3% 3%
Public Relations 5% 2%
Total 100% 100%

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Kenya Advanced Institute of Science and Technology Feasibility Study

257
Endowment Fund
Purpose and Utility of the Endowment Fund
 In order to ensure excellence in research and teaching as well as financial stability and
sustainability of the New Institute, it is crucial to create an endowment fund, which will support
a wide range of programs and activities including star faculty recruitment, extra-incentives for
faculty search and research such as extra faculty research set-up fund support, and support for
start-ups by faculty and students.
 Typically the purpose of the university endowment is to invest it and retain the investment
income (i.e., interest) for various needs of the university. Most university endowments have
guidelines for how much of each year’s investment income is to be spent. For instance,
Harvard’s endowment payout rate is 5~5.5%.

Table 114: Ten U.S. Universities with the Largest Endowments

(Unit: 1 Billion USD)

School Name Endowment


Harvard University $35.883
University of Texas System (system-wide) $25.426
Yale University $23.900
Stanford University $21.446
Princeton University $20.996
Massachusetts Institute of Technology $12.425
Texas A&M University System (system-wide) $11.104
Northwestern University $9.778
University of Michigan $9.731
University of Pennsylvania $9.582
Source: National Association of College and University Business Officers (NACUBO)
(2014)
 The endowment fund is relatively a rare practice in Kenya. The University of Nairobi only
recently set up its own endowment fund. Announcing the launch of the endowment fund on
September 2nd, 2015, UoN explained the purpose of its endowment fund was twofold: to give
the bright needy students an opportunity to pursue higher education and to raise African stars
who would be change agents in companies, organizations in Kenya and in Africa (UoN Finance
Department, http://finance.uonbi.ac.ke/node/3480).
 In this F/S, the size of the endowment fund for the New Institute is proposed to be $14.9 million,
which is 10% of the ten-year operational cost of $149,203,179 (adjusted for the inflation rate),
in consideration of the Kenyan government’s budgetary burden.
Kenya Advanced Institute of Science and Technology Feasibility Study

Source of the Fund


 While it is typical for private donors to contribute to the university endowment in most
advanced countries, such sponsorship is hard to arrange in Kenya. Therefore, the F/S
Consortium recommends that the endowment fund be established out of GoK’s counterpart
fund to the loan. Since the counterpart fund is typically 10~15% for foreign loans according to
the National Treasury, the counterpart fund for this project loan is likely to range US$7.7~11.5
million. While short for the proposed amount for the fund, this can cover most of the fund with
the rest being raised through personal and institutional donations.

Operation of the Fund


 (Rules and Guidelines) The Endowment Fund must be managed with transparency and
consistency. To ensure the proper management of the Fund, a special committee must be
created, which will be comprised of ten members including the committee chair appointed by
the University President. This committee will set up the basic rules and guidelines for the fund
operation. It will be in charge of the monitoring and supervision of the disbursement of the
Fund as well as ensuing the fund operation in line with the pre-specified rules.
 (Allocation by Purpose) Normally the university endowment is used to hire professors, upgrade
facilities, fund scholarships, and even pay debts. Decisions about how the endowment money
is used will ultimately reside in the university’s leadership, yet the following allocations appear
to be reasonable for the goals of the New Institute.

Table 115: Suggestions for Endowment Fund Operation

Item %
Faculty Recruitment and Support 30
 Hiring star faculty
 Complementing faculty start-up fund
Research Support 10
 Special research programs to advance the university’s mission
 Other miscellaneous “grassroots” type of individual faculty or
student research projects
Student Support 20
 Special scholarships for students in financial need
 Support for extracurricular activities (student clubs, council, etc.)
Facility Management 25
 Repairing or upgrading facilities

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Kenya Advanced Institute of Science and Technology Feasibility Study

 Complementing the construction cost of new campus buildings


Other Functions 15
 Support for activities or functions assessed to contribute to the
university’s mission but hard to get funded otherwise

 (Disbursement Modes) Assuming the payout rate of 5%, the amount available for the yearly
operation of the Endowment Fund will range between $384 thousands and $576 thousand. The
endowment “spending policy” (i.e., payout) is set by the special committee in charge of the
fund management. The review of the spending will follow the budget preparation and approval
procedures of the University.

260
Thirty-Year Projection of the Operational Cost
 The following table presents the 30-year projection of the operational cost, based on the assumption that every 10 years most
costs including wages & salaries, student costs, research costs, etc., will increase by 5%. (This is the calculation without the price
adjustment over 30 years.)
First 10-Year Second 10- Third 10-Year
Total Year Total Total 30-Year
Item Item Phase III (15 Departments) Item Phase IV (20 Departments)
(Cumulative (Cumulative (Cumulative Grand Total
by Item) by Item) by Item)
I. Wages & Salaries* I. Wages & Salaries I. Wages & Salaries
President President Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 President Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Salary: $130,000 Salary: $136,500 136,500 136,500 136,500 136,500 136,500 136,500 136,500 136,500 136,500 136,500 Salary: $143,325 143,325 121,275 121,275 121,275 121,275 121,275 121,275 121,275 121,275 121,275
Faculty (#) Faculty (#) 110 115 120 125 130 135 140 145 150 150 Faculty (#) 160 165 170 175 180 185 190 195 200 200
Salary: $64,000 Salary: $67,200 7,392,000 7,728,000 8,064,000 8,400,000 8,736,000 9,072,000 9,408,000 9,744,000 10,080,000 10,080,000 Salary: $70,560 11,289,600 11,642,400 11,995,200 12,348,000 12,700,800 13,053,600 13,406,400 13,759,200 14,112,000 14,112,000
Staff (Research) (#) Staff (Research) (#) 15 15 15 15 15 18 18 20 20 20 Staff (Research) (#) 20 20 20 20 20 22 22 25 25 25
Salary: $25,600 Salary: $26,880 403,200 403,200 403,200 403,200 403,200 483,840 483,840 537,600 537,600 537,600 Salary: $28,224 564,480 564,480 564,480 564,480 564,480 620,928 620,928 705,600 705,600 705,600
Staff (Dept) (#) Staff (Dept) (#) 35 35 35 40 40 40 40 45 45 45 Staff (Dept) (#) 50 50 50 55 55 55 55 60 60 60
Staff (Univ) (#) Staff (Univ) (#) 45 45 45 45 45 50 50 50 50 50 Staff (Univ) (#) 55 55 55 55 55 60 60 60 60 60
Salary: $19,200 Salary: $20,160 1,612,800 1,612,800 1,612,800 1,713,600 1,713,600 1,814,400 1,814,400 1,915,200 1,915,200 1,915,200 Salary: $21,168 2,222,640 2,222,640 2,222,640 2,328,480 2,328,480 2,434,320 2,434,320 2,540,160 2,540,160 2,540,160
Retirement Retirement 238,613 247,013 255,413 266,333 274,733 287,669 296,069 308,333 316,733 316,733 Retirement 355,501 363,770 372,590 384,056 392,876 405,753 414,573 428,156 436,976 436,976
Sub-Total (I) 59,990,762 Sub-Total (I) 9,783,113 10,127,513 10,471,913 10,919,633 11,264,033 11,794,409 12,138,809 12,641,633 12,986,033 12,986,033 115,113,117 Sub-Total (I) 14,575,546 14,914,565 15,276,185 15,746,291 16,107,911 16,635,876 16,997,496 17,554,391 17,916,011 17,916,011 163,640,282 338,744,161

II. Student Affairs** II. Student Affairs II. Student Affairs


MS Students (#) MS Students (#) 670 820 820 820 820 820 820 820 820 820 MS Students (#) 970 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120
Educational Cost: Educational Cost: Educational Cost:
4,221,000 5,166,000 5,166,000 5,166,000 5,166,000 5,166,000 5,166,000 5,166,000 5,166,000 5,166,000 6,416,550 7,408,800 7,408,800 7,408,800 7,408,800 7,408,800 7,408,800 7,408,800 7,408,800 7,408,800
$6,000 $6,300 $6,615
PhD Students (#) PhD Students (#) 300 300 350 350 350 350 350 350 350 350 PhD Students (#) 350 350 400 400 400 400 400 400 400 400
Educational Cost: Educational Cost: Educational Cost:
3,780,000 3,780,000 4,410,000 4,410,000 4,410,000 4,410,000 4,410,000 4,410,000 4,410,000 4,410,000 4,630,500 4,630,500 5,292,000 5,292,000 5,292,000 5,292,000 5,292,000 5,292,000 5,292,000 5,292,000
$12,000 $12,600 $13,230
Sub-Total (II) 37,080,000 Sub-Total (II) 8,001,000 8,946,000 9,576,000 9,576,000 9,576,000 9,576,000 9,576,000 9,576,000 9,576,000 9,576,000 93,555,000 Sub-Total (II) 11,047,050 12,039,300 12,700,800 12,700,800 12,700,800 12,700,800 12,700,800 12,700,800 12,700,800 12,700,800 124,692,750 255,327,750

III. Research Affairs III. Research Affairs Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 III. Research Affairs
III-1. Faculty Research Program III-1. Faculty Research Program III-1. Faculty Research Program
Faculty Research Faculty Research Faculty Research
Fund: $20,000 on Fund: $21,000 on 2,310,000 2,415,000 2,520,000 2,625,000 2,730,000 2,835,000 2,940,000 3,045,000 3,150,000 3,150,000 Fund: $22,050 on 3,528,000 3,638,250 3,748,500 3,858,750 3,969,000 4,079,250 4,189,500 4,299,750 4,410,000 4,410,000
average average average
III-2. Exchange Program III-2. Exchange Program III-2. Exchange Program
# of Kenyan Faculty to # of Kenyan Faculty to # of Kenyan Faculty to
15 15 15 15 15 20 20 20 20 20 20 20 20 20 20 25 25 25 25 25
Korea Korea Korea
Training Cost: $20,000 Training Cost: $21,000 315,000 315,000 315,000 315,000 315,000 420,000 420,000 420,000 420,000 420,000 Training Cost: $22,050 441,000 441,000 441,000 441,000 441,000 551,250 551,250 551,250 551,250 551,250
# of Korean Faculty to # of Korean Faculty to # of Korean Faculty to
5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6
Kenya Kenya Kenya
Compensation: Compensation: Compensation:
367,500 367,500 367,500 367,500 367,500 367,500 367,500 367,500 367,500 367,500 385,875 385,875 385,875 385,875 385,875 463,050 463,050 463,050 463,050 463,050
$70,000 $73,500 $77,175

Sub-Total (III) 13,980,000 Sub-Total (III) 2,992,500 3,097,500 3,202,500 3,307,500 3,412,500 3,622,500 3,727,500 3,832,500 3,937,500 3,937,500 35,070,000 Sub-Total (III) 4,354,875 4,465,125 4,575,375 4,685,625 4,795,875 5,093,550 5,203,800 5,314,050 5,424,300 5,424,300 49,336,875 98,386,875

IV. Current Costs*** IV. Current Costs*** IV. Current Costs***


1. Water/Electricity 1. Water/Electricity 415,532 443,420 465,008 476,063 485,051 499,858 508,846 521,003 529,991 529,991 1. Water/Electricity 599,549 628,380 651,047 662,654 672,092 688,605 698,042 711,385 720,822 720,822
2. Cleaning, etc. 2. Cleaning, etc. 249,319 266,052 279,005 285,638 291,030 299,915 305,308 312,602 317,994 317,994 2. Cleaning, etc. 359,730 377,028 390,628 397,593 403,255 413,163 418,825 426,831 432,493 432,493
3. E/F Maintenance 3. E/F Maintenance 249,319 266,052 279,005 285,638 291,030 299,915 305,308 312,602 317,994 317,994 3. E/F Maintenance 359,730 377,028 390,628 397,593 403,255 413,163 418,825 426,831 432,493 432,493
4. Admin Operation 4. Admin Operation 432,154 461,157 483,609 495,105 504,453 519,852 529,200 541,843 551,190 551,190 4. Admin Operation 623,531 653,515 677,089 689,160 698,975 716,149 725,964 739,840 749,655 749,655
5. Non-TenureTrack 5. Non-TenureTrack 5. Non-TenureTrack
166,213 177,368 186,003 190,425 194,020 199,943 203,538 208,401 211,996 211,996 239,820 251,352 260,419 265,062 268,837 275,442 279,217 284,554 288,329 288,329
Faculty Faculty Faculty
6. IT Management 6. IT Management 66,485 70,947 74,401 76,170 77,608 79,977 81,415 83,360 84,799 84,799 6. IT Management 95,928 100,541 104,168 106,025 107,535 110,177 111,687 113,822 115,332 115,332
7. Utilities/Taxes 7. Utilities/Taxes 49,864 53,210 55,801 57,128 58,206 59,983 61,062 62,520 63,599 63,599 7. Utilities/Taxes 71,946 75,406 78,126 79,519 80,651 82,633 83,765 85,366 86,499 86,499
8. Public Relations 8. Public Relations 33,243 35,474 37,201 38,085 38,804 39,989 40,708 41,680 42,399 42,399 8. Public Relations 47,964 50,270 52,084 53,012 53,767 55,088 55,843 56,911 57,666 57,666
Sub-Total (IV) 7,770,228 Sub-Total (IV) 1,662,129 1,773,681 1,860,033 1,904,251 1,940,203 1,999,433 2,035,385 2,084,011 2,119,963 2,119,963 19,499,049 Sub-Total (IV) 2,398,198 2,513,519 2,604,189 2,650,617 2,688,367 2,754,418 2,792,168 2,845,539 2,883,289 2,883,289 27,013,593 54,282,870

Total (I~V, Annual) 118,820,990 Total (I~V, Annual) 22,438,742 23,944,694 25,110,446 25,707,383 26,192,735 26,992,341 27,477,693 28,134,143 28,619,495 28,619,495 263,237,166 Total (I~V, Annual) 32,375,669 33,932,509 35,156,549 35,783,333 36,292,953 37,184,644 37,694,264 38,414,780 38,924,400 38,924,400 364,683,500 746,741,657
Kenya Advanced Institute of Science and Technology Feasibility Study

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Chapter 9. Feasibility Analysis

Policy Feasibility
Importance of National Policy
 Characteristics of the Project
The purpose of the project is to establish a research-centered university dedicated to S&T
in a manner that does not overlap with the functions of currently existing institutes of
higher education in the country. The university aims to nurture and produce highly skilled
human resources and produce research outcomes that can address the needs of the industry
and directly contribute to Kenya’s economic growth and social development.
By modeling on the Korea Advanced Institute of Science and Technology (KAIST), the
university will focus on STEM education for enhancing problem-solving skills and provide
unique experiences in hands-on experience. In addition, KAIST’s strengths in industrial
partnerships and collaboration with the private sector, and the promotion of student start-
ups exemplify the industrial relevance of research and education.
The founding philosophy of the university and its curriculum strongly reflects these aims
and concerns. The departments and programs to be established and offered at the university
have been deduced both quantitatively and qualitatively to respond to the needs and
weaknesses of Kenya’s industry and national infrastructure.
The university at its full capacity will produce graduates who can take up the role of expert
scientists and engineers and be valuable human resources to industries, or create markets
and value of their own. The university itself will also be an asset by constantly reaching
out for collaborations with the industry in areas where individual scientists and researchers
cannot.
 Alignment with National Policies
Kenya’s Vision 2030 stipulates the Kenyan government’s resolve to “transform Kenya into
an industrializing, middle-income country providing a high quality of life to all its
citizens”.
Most relevant to the project are the economic and social pillars of the Vision 2030, which
encompass improvement and development of numerous sectors ranging from agriculture
and manufacturing, to environment and education. The Vision recognizes the importance
of S&T and R&D in these undertakings, and has included STI among the 10 foundational
themes.
Individual ministries that have close connection to S&T have also announced detailed
medium-term strategies—the Ministry of Information, Communication and Technology

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(MIC), the Ministry of Industrialization and Enterprise Development (MIED), the Ministry
of Energy (MOE), the Ministry of Environment, Water and Natural Resources, and so on.
These strategies not only provide good political support for justifying the establishment of
a research-centered S&T university, but also point out the areas in which S&T is most
urgently required in Kenya.
One of the official goals of education in Kenya (revised in 2002) is to promote the “socio-
economic, technological, and industrial skills for the country’s development” (Kaimenyi
2015).
In particular, the Project is well-aligned with two crucial acts recently enacted in Kenya.
Universities Act 2012 enacted to promote university education by the establishment
of the CUE whose key functions are the accreditation and governance of
universities.
Science, Technology and Innovation Act 2013 enacted to “facilitate the promotion,
coordination, and regulation of ST&I of the country, to assign priority to the
development of ST&I, and entrench ST&I into the National Production system and
for the connected purposes” (Kaimenyi 2015)
In addition, plans for the Konza Technolopolis have been outlined, and the Kenyan
government has offered plots within the technopolis for the construction of the university.
Konza Techno City is expected to attract private investments and firms, and other research
institutes, which would place the university at an even more strategic position to interact
with industries.

Policy Feasibility Analysis


 There exist ample justification for the establishment of a new research-centered university.
Firstly, the need for highly qualified human resources in S&T has been made explicit
through various government reports, including the Vision 2030 and its medium term plans,
as well as the strategic papers of individual ministries. Graduate of the university will
become valuable domestic source of highly skilled experts.
Second, existing universities do provide several degrees in STEM, they have tended to
serve general educational missions without a clear strategy to take advantage of S&T
potential for economic growth and social development. By focusing on industrial needs
and university-industry cooperation, the university will be able to contribute in ways that
are distinct to currently existing universities. The Konza Technopolis initiative also
furnishes a favorable policy environment for the university, locating it in close proximity
to key industries and research centers.

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 However, whether the university will be able to sustain itself, both financially and politically,
in the long run requires close inspection. With Korea Eximbank’s funds being limited, the
university must be able to secure adequate funding for its faculty, staff, student stipends and
maintenance of the campus and its equipment, as well as fund for research projects. It must also
be able to forge and maintain close working relationships with local, regional and international
industries. Lastly, although the Konza initiative provides an advantage for the university, it is
still in its early stages itself, hence reaping the benefits of locating the university in Konza
instead of the Nairobi area will depend heavily on the success of the initiative itself.

Technical Feasibility
Potential Technical Problems
 For the project feasibility study, various technical issues were raised and discussed. They can
be summarized as the followings:

Table 116: Potential Technical Problems

Construction  Size, appropriateness and the function of each building


Appropriateness of  Rationales for department selection and the accordance with
Department Selection future industry forecasts
Equipment & Facilities  Feasibility of selecting equipment and facilities optimized
for the operation, education and management of the school
 Feasibility of retaining adequate technology to install,
manage and maintain the research equipment and facilities
Faculty & Students Feasibility of recruiting the students and the faculties adequate
for the size of the school

Assessment of Technical Alternative


 Detailed plan for construction including the size and the functions of each building have been
reviewed and designed according to chapter 7 considering the site location and the future
regional plans. Furthermore, the interiors and facilities for each building will be designed to
give consideration on specific functions and flow of human traffic
 Selection of the departments were reviewed thoroughly in chapter 5 via qualitative, quantitative
& GAP approaches, and this process integrates government of Kenya’s Kenya-Vision 2030,
KAM’s Sectoral Overview regarding importance and necessity for ICT and STI. Trade-offs
was considered prior to the final selection as well.
 Equipment & Facilities were decided based on the demand analysis of the school and the
departments and from the 40 years management experiences of KAIST.

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 Academic Policy regarding recruitment of faculties and students were reviewed thoroughly in
chapter 4, and the reward programs that are far higher compared to other educational institutes
in Kenya was reviewed according to the founding purpose and future plans.
 Therefore, this project is assessed to be technically feasible.

Economic Feasibility
Methods of Analysis
 The purpose of the economic feasibility analysis for an educational project is to compare and
analyze the calculated costs and benefits according to the selected analysis method. This can
be done through estimated benefits based on measurable costs such as estimated construction
cost and management cost as well as with assumptions on certain macroeconomic indicators
such as economic growth rates and interest rates.
 As for firms looking to maximize profit, the cost-benefit analysis is performed by analyzing
estimated cash flow statement, balance sheet and income statement. However, for an
educational organization, socioeconomic benefits must be given greater consideration than
simple financial profits. Therefore, the Net Present Value Method, the Internal Return Rate, the
Benefit-Cost Ratio and Sensitivity Analysis were used to analyze economic feasibility.

Cost-Benefit Analysis
 The costs and benefits presented below are analyzed for the time frame of the three years of
construction and thirty years of operation of the New Institute.
 Since there is no “social discount rate” data available for Kenya as of now, Korea Eximbank’s
EDCF criterion (12%) is applied as the discount rate (i.e., r=12% or 0.12).

Estimating Costs and Benefits


 Cost Estimation
For each cost calculated in Chapter 8, the percentage of each expense for each year will be
applied as the following.

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Table 117: Cost Distributions


(Unit: USD)

Tax & Service


Year Direct Cost E/F Consulting Contingencies
Charge
0 20% 20% 20% 20%
1 20% 40% 20% 20% 20%
2 30% 20% 30% 30% 30%
3 30% 20% 30% 30% 30%
4 15%
5 5%
Total 100% 100% 100% 100% 100%

The construction period is estimated to be 3 years, and the operational cost is assumed to
occur at Year 3 of the construction period.

Table 118: Project Cost in Current Value


(Unit: USD)

Costs in Current Value


Year Tax &Service Operational Total
Construction E/F Consulting Contingencies Endowment
Charge Cost
0 9,997,735 2,019,053 1,449,768 1,449,768 14,916,323
1 9,997,735 3,788,920 2,019,053 1,449,768 1,449,768 18,705,243
2 14,996,602 1,894,460 3,028,579 2,174,652 2,174,652 24,268,945
3 14,996,602 1,894,460 3,028,579 2,174,652 2,174,652 1,976,940 14,920,318 41,166,203
4 1,420,845 3,830,904 5,251,749
5 473,615 5,783,148 6,256,763
6 7,388,892 7,388,892
7 8,994,636 8,994,636
8 11,009,628 11,009,628
9 13,497,393 13,497,393
10 14,744,802 14,744,802
11 16,165,010 16,165,010
12 17,585,219 17,585,219
13 17,844,419 17,844,419
14 22,438,742 22,438,742
15 23,944,694 23,944,694

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16 25,110,446 25,110,446
17 25,707,383 25,707,383
18 26,192,735 26,192,735
19 26,992,341 26,992,341
20 27,477,693 27,477,693
21 28,134,143 28,134,143
22 28,619,495 28,619,495
23 28,619,495 28,619,495
24 32,375,669 32,375,669
25 33,932,509 33,932,509
26 35,156,549 35,156,549
27 35,783,333 35,783,333
28 36,292,953 36,292,953
29 37,184,644 37,184,644
30 37,694,264 37,694,264
31 38,414,780 38,414,780
32 38,924,400 38,924,40
33 38,924,400 38,924,400
Total 49,988,673 9,472,300 10,095,263 7,248,841 7,248,841 746,741,657 14,920,318 845,715,891

Table 119: Project Direct Cost in Present Value (r=12%)


(Unit: USD)

Costs in Present Value


Year Tax &Service Operational Total
Construction E/F Consulting Contingencies Endowment
Charge Cost
0 9,997,735 2,019,053 1,449,768 1,449,768 14,916,323

1 9,997,735 3,788,920 2,019,053 1,449,768 1,449,768 18,705,243

2 13,389,823 1,691,482 2,704,088 1,941,654 1,941,654 21,668,701


3 11,955,199 1,510,252 2,414,365 1,733,619 1,733,619 1,576,004 14,920,318 35,843,377
4 1,011,329 2,726,762 3,738,091

5 300,991 3,675,295 3,976,286

6 4,192,656 4,192,656

7 4,556,963 4,556,963

8 4,980,197 4,980,197

9 5,451,371 5,451,371

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10 5,317,123 5,317,123

11 5,204,701 5,204,701

12 5,055,330 5,055,330

13 4,580,218 4,580,218

14 5,142,380 5,142,380

15 4,899,559 4,899,559

16 4,587,585 4,587,585

17 4,193,431 4,193,431

18 3,814,824 3,814,824

19 3,510,073 3,510,073

20 3,190,346 3,190,346

21 2,916,576 2,916,576

22 2,649,009 2,649,009

23 2,365,187 2,365,187

24 2,388,934 2,388,934

25 2,235,545 2,235,545

26 2,068,024 2,068,024

27 1,879,370 1,879,370

28 1,701,906 1,701,906

29 1,556,894 1,556,894

30 1,409,135 1,409,135

31 1,282,206 1,282,206

32 1,160,014 1,160,014

33 1,035,727 1,035,727

Total 45,340,491 8,302,974 9,156,558 6,574,809 6,574,809 101,303,344 14,920,318 192,173,304

 Benefit Estimation
Benefits can be divided into two categories. One is the direct benefits from the operation
of the project. This arises from the contribution of the operation of the New Institute to the
local economy. The other is the employment effect and other implicit benefits generated
by the students graduating from the New Institute.
(i) Direct Benefits
A standard approach to measuring the benefits from construction and management of an
organization is to calculate the economic spillover using the Input-Output Analysis. As is
well known, the I-O Analysis is done with the meticulous table tabulating the flows of

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input and output of each industry across the whole economy. Since such an input-output
table is not available in Kenya, a different approach is needed to measure the direct
benefits.
Due to the lack of the Kenyan Input-Output model, it is considered to be reasonable to
analyze the spending and consumption effect of some of the operational costs (especially
the wages and salaries paid to Kenyan employees of the university as well as the current
costs). This is because some of the operational costs used to run the New Institute are
spilled over to the local economy, since the university employees getting their salaries and
wages spend their income in the local economy and also local business owners contracting
with various university services will make profits that essentially show up as the current
costs in the university balance sheet.
In order to calculate the spending effect of the wages paid to the faculty and staff of the
New Institute, this analysis applied the savings rate for disposable income averaged for the
recent four years (2011~2014), based on the data from the Facts and Figures 2015 of
Kenya National Bureau of Statistics. Since tuition waivers are not spent directly $6,000
for MS and $12,000 for PhD), they are excluded from direct benefits.
Research funding support for faculty is included into direct benefits, as it is highly likely
to be dispensed in the local economy in various forms. In contrast, the support for Kenyan
faculty dispatched to Korea for research and educational training is excluded, as it will not
be disbursed in Kenya. Current costs are all considered as direct spending in the local
economy.

Table 120: Local Spending out of Institute Operation

First 10-
Pre-
Item Phase I (6 Departments) Phase II (10 Departments) Year Total
Phase
(CumulativebyItem)
I. Wages & Salaries Year0 Year1 Year2 Year3 Year4 Year5 Year6 Year7 Year8 Year9 Year10
Sub-Total (I) 1,742,800 2,118,480 3,047,760 3,977,040 4,906,320 6,145,360 6,467,586 7,102,594 7,737,602 8,372,610 8,372,610 59,990,762
Saving ratio : 12%
Spending 1,533,664 1,864,262 2,682,029 3,499,795 4,317,562 5,407,917 5,691,476 6,250,283 6,809,090 7,367,897 7,367,897 52,791,871

II. Student Affairs

III. Research Affairs


Faculty Research Fund: 0 480,000 720,000 960,000 1,200,000 1,520,000 1,520,000 840,000 920,000 1,000,000 1,000,000 10,160,000
Korean Faculty spending 123,200 184,800 184,800 184,800 184,800 184,800 246,400 246,400 246,400 246,400 246,400 2,279,200
Spending 123,200 664,800 904,800 1,144,800 1,384,800 1,704,800 1,766,400 1,086,400 1,166,400 1,246,400 1,246,400 12,439,200

IV. Current Costs


Sub-Total (IV) 94,140 182,424 275,388 351,852 428,316 524,268 999,807 1,092,208 1,197,408 1,302,609 1,321,809 7,770,228

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Spending 94,140 182,424 275,388 351,852 428,316 524,268 999,807 1,092,208 1,197,408 1,302,609 1,321,809 7,770,228

Overall Spending 1,751,004 2,711,486 3,862,217 4,996,447 6,130,678 7,636,985 8,457,683 8,428,890 9,172,898 9,916,906 9,936,106 73,001,299

Second
Item Phase III (15 Departments) 10-Year
Total
(Cumulativeby
Item)
Year11 Year12 Year13 Year14 Year15 Year16 Year17 Year18 Year19 Year20
Sub-Total (I) 9,783,113 10,127,513 10,471,913 10,919,633 11,264,033 11,794,409 12,138,809 12,641,633 12,986,033 12,986,033 115,113,117

8,609,139 8,912,211 9,215,283 9,609,277 9,912,349 10,379,079 10,682,151 11,124,637 11,427,709 11,427,709 101,299,543

2,310,000 2,415,000 2,520,000 2,625,000 2,730,000 2,835,000 2,940,000 3,045,000 3,150,000 3,150,000 27,720,000
323,400 323,400 323,400 323,400 323,400 323,400 323,400 323,400 323,400 323,400 3,234,000
2,633,400 2,738,400 2,843,400 2,948,400 3,053,400 3,158,400 3,263,400 3,368,400 3,473,400 3,473,400 30,954,000

Sub-Total (IV) 1,662,129 1,773,681 1,860,033 1,904,251 1,940,203 1,999,433 2,035,385 2,084,011 2,119,963 2,119,963 19,499,049
1,662,129 1,773,681 1,860,033 1,904,251 1,940,203 1,999,433 2,035,385 2,084,011 2,119,963 2,119,963 19,499,049

12,904,668 13,424,292 13,918,716 14,461,927 14,905,951 15,536,912 15,980,936 16,577,047 17,021,071 17,021,071 151,752,592
Third 10-
Item Phase IV (20 Departments) Year
Total
(Cumulativeby
Year21 Year22 Year23 Year24 Year25 Year26 Year27 Year28 Year29 Year30 Item)
Sub-Total (I) 14,575,546 14,914,565 15,276,185 15,746,291 16,107,911 16,635,876 16,997,496 17,554,391 17,916,011 17,916,011 163,640,282

12,826,481 13,124,817 13,443,043 13,856,736 14,174,962 14,639,571 14,957,797 15,447,864 15,766,090 15,766,090 144,003,449

3,528,000 3,638,250 3,748,500 3,858,750 3,969,000 4,079,250 4,189,500 4,299,750 4,410,000 4,410,000 40,131,000
339,570 339,570 339,570 339,570 339,570 407,484 407,484 407,484 407,484 407,484 3,735,270
3,867,570 3,977,820 4,088,070 4,198,320 4,308,570 4,486,734 4,596,984 4,707,234 4,817,484 4,817,484 43,866,270

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Sub-Total (IV) 2,398,198 2,513,519 2,604,189 2,650,617 2,688,367 2,754,418 2,792,168 2,845,539 2,883,289 2,883,289 27,013,593
2,398,198 2,513,519 2,604,189 2,650,617 2,688,367 2,754,418 2,792,168 2,845,539 2,883,289 2,883,289 27,013,593

19,092,248 19,616,156 20,135,301 20,705,673 21,171,898 21,880,723 22,346,948 23,000,637 23,466,862 23,466,862 214,883,311

The following tables show the direct benefits in current and present values. The total
benefits for the thirty years of operation of the New Institute is estimated to be
$439,637,292 in current value, which becomes $61,148,802 in present value with the
discount rate of 12%.

Table 121: Direct Benefits in Current Value


(Unit: USD)

Benefit in Current Value


Year Benefit from Benefit from Benefit from Benefit from Benefit from Total
Construction EF Consulting Contingencies Operational
0 -
1 -
2 -
3 1,751,004 1,751,004
4 2,711,486 2,711,486
5 3,862,217 3,862,217
6 4,996,447 4,996,447
7 6,130,678 6,130,678
8 7,636,985 7,636,985
9 8,457,683 8,457,683
10 8,428,890 8,428,890
11 9,172,898 9,172,898
12 9,916,906 9,916,906
13 9,936,106 9,936,106
14 12,904,668 12,904,668
15 13,424,292 13,424,292
16 13,918,716 13,918,716
17 14,461,927 14,461,927
18 14,905,951 14,905,951
19 15,536,912 15,536,912

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20 15,980,936 15,980,936
21 16,577,047 16,577,047
22 17,021,071 17,021,071
23 17,021,071 17,021,071
24 19,092,248 19,092,248
25 19,616,156 19,616,156
26 20,135,301 20,135,301
27 20,705,673 20,705,673
28 21,171,898 21,171,898
29 21,880,723 21,880,723
30 22,346,948 22,346,948
31 23,000,637 23,000,637
32 23,466,862 23,466,862
33 23,466,862 23,466,862
Total - - - - 439,637,202 439,637,202

Table 122: Direct Benefits in Present Value (r=12%)


(Unit: USD)

Benefit in Current Value


Year Benefit from Benefit from Benefit from Benefit from Benefit from Total
Construction EF Consulting Contingencies Operational
0 -
1 -
2 -
3 1,395,890 1,395,890
4 1,929,982 1,929,982
5 2,454,509 2,454,509
6 2,835,118 2,835,118
7 3,105,992 3,105,992
8 3,454,584 3,454,584
9 3,415,916 3,415,916
10 3,039,542 3,039,542
11 2,953,428 2,953,428

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12 2,850,873 2,850,873
13 2,550,351 2,550,351
14 2,957,417 2,957,417
15 2,746,876 2,746,876
16 2,542,897 2,542,897
17 2,359,054 2,359,054
18 2,170,967 2,170,967
19 2,020,414 2,020,414
20 1,855,495 1,855,495
21 1,718,489 1,718,489
22 1,575,464 1,575,464
23 1,406,664 1,406,664
24 1,408,778 1,408,778
25 1,292,354 1,292,354
26 1,184,425 1,184,425
27 1,087,479 1,087,479
28 992,826 992,826
29 916,130 916,130
30 835,402 835,402
31 767,714 767,714
32 699,353 699,353
33 624,422 624,422
Total - - - - 61,148,804 61,148,804

(ii) Indirect Effects from Education and Research


 Employment Effect
The estimation of indirect effects is based upon the premise that education and research at
the New Institute will produce highly skilled engineers as well as research outcomes that
ultimately contribute to the labor productivity and capital productivity of the national
economy.
It should be noted that it is not easy to measure the impact of education only with
quantitative indicators. In particular, the New Institute aims to produce S&T leaders for
the nation, and therefore it is hard to project and capture with simple numbers the future
values of this enhanced S&T leadership.

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The biggest impact of the current project can be said to be the long-term improvement of
the economy and social development s well as the increase in personal income and living
standards of the graduates from the New Institute. Since it is hard to measure the intangible
and non-economic impacts quantitatively, the current analysis is limited to the
quantification of the benefits in the form of economic development through education and
training.
To this end, the current analysis benchmarks the “Feasibility Study of the Establishment
of the UNESCO-Affiliated Organization” of the Korean Ministry of Education, Science,
and Technology (2009), which assumes that the graduates from the proposed organization
will play a leadership role in their society when returning to their own countries.
This UNESCO F/S assumes the employment effect as follows: 10 for graduates of the
master’s program and 20 for graduates of the doctoral program. The aforesaid study
assumed 10 for the undergraduate students as the employment effect. To be on the
conservative side to prevent over-estimation, this study will assume the same employment
effect for the graduates of the master’s program and the double of that for the graduates of
the doctoral program. (The employment effect here includes all kinds of employment such
as paid employment, self-employment, or start-ups.)
For the calculation of the employment effect, the current study draws on the salary data
from KNBS’ Economic Survey 2014. According to this information, the average salaries
of the private and public sectors in Kenya are $5,354 and $6,477, respectively. The average
of the two salaries ($5,916) is used to calculate the employment effect, with the 4.7% of
the 2012 nominal wage increase rate (from Kenya’s Central Bank) applied.
Also the aforesaid UNESCO F/S suggested the twice that of the employment effect for the
implicit contribution of the establishment of the educational institution to GDP. This study
also benchmarks that assumption, as the specific calculations of the implicit benefits are
rather hard at this stage due to the lack of the proper data.

Table 123: Number of Graduates from the New Institute


(Unit: Persons)

Year MS Graduates Ph.D. Graduates


0
1
2
3
4
5
6 90

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7 90
8 90
9 90
10 90 30
11 150 30
12 150 30
13 150 30
14 150 30
15 150 50
16 225 50
17 225 50
18 225 50
19 225 50
20 225 75
21 225 75
22 225 75
23 225 75
24 225 75
25 225 75
26 300 75
27 300 75
28 300 75
29 300 75
30 300 100
31 300 100
32 300 100
33 300 100
Total 5,850 1,550

Table 124: Average Salaries of Kenya


(100Ksh=USD1.145)

Salary KSh USD


Private Sector 467,690 5,354.82
Public Sector 565,755 6,477.62

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Average 516,722 5,916.22

Table 125: Employment Effect and Implicit Contribution to Kenyan GDP in Current Value
(Unit: USD)

Benefit in Current Value


No. of No. of Additional
Year Average Salary Contribution Total
Graduates Graduates Employment Contribution
of Kenya to GDP
(Masters) (Ph.D.) to GDP
A B C=AXB D=2XC
0
1
2
3
4
5
6 90 900 5,916 5,324,596 10,649,192 15,973,788
7 90 900 6,194 5,574,852 11,149,704 16,724,556
8 90 900 6,485 5,836,870 11,673,740 17,510,610
9 90 900 6,790 6,111,203 12,222,406 18,333,608
10 90 30 1,500 7,109 10,664,049 21,328,098 31,992,147
11 150 30 2,100 7,444 15,631,363 31,262,726 46,894,089
12 150 30 2,100 7,793 16,366,037 32,732,074 49,098,111
13 150 30 2,100 8,160 17,135,241 34,270,481 51,405,722
14 150 30 2,100 8,543 17,940,597 35,881,194 53,821,791
15 150 50 2,500 8,945 22,361,673 44,723,345 67,085,018
16 225 50 3,250 9,365 30,436,473 60,872,945 91,309,418
17 225 50 3,250 9,805 31,866,987 63,733,974 95,600,961
18 225 50 3,250 10,266 33,364,735 66,729,471 100,094,206
19 225 50 3,250 10,749 34,932,878 69,865,756 104,798,634
20 225 75 3,750 11,254 42,201,604 84,403,207 126,604,811
21 225 75 3,750 11,783 44,185,079 88,370,158 132,555,237
22 225 75 3,750 12,336 46,261,778 92,523,555 138,785,333
23 225 75 3,750 12,916 48,436,081 96,872,163 145,308,244
24 225 75 3,750 13,523 50,712,577 101,425,154 152,137,731
25 225 75 3,750 14,159 53,096,068 106,192,136 159,288,205
26 300 75 4,500 14,824 66,709,900 133,419,800 200,129,700
27 300 75 4,500 15,521 69,845,265 139,690,531 209,535,796
28 300 75 4,500 16,251 73,127,993 146,255,986 219,383,979

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29 300 75 4,500 17,014 76,565,009 153,130,017 229,695,026


30 300 100 5,000 17,814 89,070,627 178,141,253 267,211,880
31 300 100 5,000 18,651 93,256,946 186,513,892 279,770,838
32 300 100 5,000 19,528 97,640,023 195,280,045 292,920,068
33 300 100 5,000 20,446 102,229,104 204,458,207 306,687,311
Total 1,206,885,606 2,413,771,212 3,620,656,817

Table 126: Employment Effect and Implicit Contribution to Kenyan GDP in Present Value (r=12%)
(Unit: USD)

Benefit in Current Value


No. of No. of Average Additional
Year Contribution Total
Graduates Graduates Employment Salary of Contribution
to GDP
(Masters) (Ph.D.) Kenya to GDP
A B C=AXB D=2XC
0
1
2
3
4
5
6 90 900 5,916 5,324,596 10,649,192 15,973,788
7 90 900 6,194 5,574,852 11,149,704 16,724,556
8 90 900 6,485 5,836,870 11,673,740 17,510,610
9 90 900 6,790 6,111,203 12,222,406 18,333,608
10 90 30 1,500 7,109 10,664,049 21,328,098 31,992,147
11 150 30 2,100 7,444 15,631,363 31,262,726 46,894,089
12 150 30 2,100 7,793 16,366,037 32,732,074 49,098,111
13 150 30 2,100 8,160 17,135,241 34,270,481 51,405,722
14 150 30 2,100 8,543 17,940,597 35,881,194 53,821,791
15 150 50 2,500 8,945 22,361,673 44,723,345 67,085,018
16 225 50 3,250 9,365 30,436,473 60,872,945 91,309,418
17 225 50 3,250 9,805 31,866,987 63,733,974 95,600,961
18 225 50 3,250 10,266 33,364,735 66,729,471 100,094,206
19 225 50 3,250 10,749 34,932,878 69,865,756 104,798,634
20 225 75 3,750 11,254 42,201,604 84,403,207 126,604,811
21 225 75 3,750 11,783 44,185,079 88,370,158 132,555,237
22 225 75 3,750 12,336 46,261,778 92,523,555 138,785,333

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23 225 75 3,750 12,916 48,436,081 96,872,163 145,308,244


24 225 75 3,750 13,523 50,712,577 101,425,154 152,137,731
25 225 75 3,750 14,159 53,096,068 106,192,136 159,288,205
26 300 75 4,500 14,824 66,709,900 133,419,800 200,129,700
27 300 75 4,500 15,521 69,845,265 139,690,531 209,535,796
28 300 75 4,500 16,251 73,127,993 146,255,986 219,383,979
29 300 75 4,500 17,014 76,565,009 153,130,017 229,695,026
30 300 100 5,000 17,814 89,070,627 178,141,253 267,211,880
31 300 100 5,000 18,651 93,256,946 186,513,892 279,770,838
32 300 100 5,000 19,528 97,640,023 195,280,045 292,920,068
33 300 100 5,000 20,446 102,229,104 204,458,207 306,687,311
Total 1,206,885,606 2,413,771,212 3,620,656,817

 R&D Effect
Universities also perform research. The magnitude and significance of research and
development (R&D) activities in an S&T-centered university cannot be overstated. R&D
performed in the New Institute is expected to generate various industrial and economic
benefits.
Kenya’s R&D intensity (i.e., the share of R&D in GDP) is about 0.42%, which is similar
to the R&D intensity of Korea of 1975.
The economic impact from the New Institute’s R&D is calculated based on (i) the
projected GDP growth rate of Kenya for the next 30 years, (ii) the contribution of R&D to
GDP growth, (iii) Kenya’s R&D investment level, (iv) the New Institute’s share in Kenya’s
R&D.
The GDP growth rate was taken from KNBS’s Economic Survey 2014, and the actual
R&D activities are assumed to take place from 2019, with the actual benefits from those
R&D activities arising from the third year (2022) of the initial launch of R&D programs
at the New Institute (i.e., Year 7).
The estimation of the economic contribution of R&D to GDP is based on the S&T Policy
Institute (STEPI)’s Report on the Contribution of R&D to Economic Growth. Since the
R&D intensity of Kenya is similar to that of the 1970s, the current analysis uses 28.1%
that was the size of contribution of R&D to economic growth during 1981~2002 in Korea.
While this may be guesswork, the limitation of the data forces the choice of such
benchmark.
The monetary size of the R&D contribution of the New Institute is based on the research
money distributed to the faculty of the New Institute.

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Kenya Advanced Institute of Science and Technology Feasibility Study

The following table shows that the contribution of the New Institute to GDP through its
R&D activities is $482,393,625, which is $51,434,904 in present value. Together with the
employment effect analyzed in the previous part, the total indirect effect is estimated to be
$378,701,723.

Table 127: R&D Contribution to Kenyan GDP in Current Value


(Unit: USD)

Annual GDP Contribution to K-KAIST K-KAIST K-KAIST


GDP Kenyan R&D
YEAR Growth Amount R&D Contribution Contribution Contribution
(Projection) Investment
(Projection) (Ratio=28.1%) to R&D Ratio (%) to GDP
A B C (BX28.1%) D (AX0.42%) E F (E/D) CXF
1
2
3
4
5
6 141,305,159,885
7 158,968,304,870 17,663,144,986 4,963,343,741 667,666,880 480,000 0.0719% 3,568,254
8 178,839,342,979 19,871,038,109 5,583,761,709 751,125,241 720,000 0.0959% 5,352,381
9 201,194,260,851 22,354,917,872 6,281,731,922 845,015,896 960,000 0.1136% 7,136,508
10 226,343,543,458 25,149,282,606 7,066,948,412 950,642,883 1,200,000 0.1262% 8,920,635
11 254,636,486,390 28,292,942,932 7,950,316,964 1,069,473,243 1,520,000 0.1421% 11,299,471
12 286,466,047,189 31,829,560,799 8,944,106,584 1,203,157,398 1,520,000 0.1263% 11,299,471
13 322,274,303,087 35,808,255,899 10,062,119,907 1,353,552,073