Kenya CA: Data Centre Licence Proposal to Boost Oversight

• The Communications Authority of Kenya (CA) has proposed a new standalone licensing regime for data centres.
• This new licence would replace the current practice of regulating co-location facilities under the Network Facilities Provider (NFP) Tier 2 category.
• The CA aims to enhance regulatory clarity, improve oversight, support investment, and align with international standards.
• The proposed framework specifically targets companies offering co-location data centre services and related support.
• Industry stakeholders and the public have 30 days to submit comments on the proposal, which is not yet in force.

The Communications Authority of Kenya has opened the proposal for public participation, inviting industry stakeholders and the general public to submit their views and comments on the suggested framework for colocation data centre operations in Kenya.

The Communications Authority of Kenya (CA) has put forward a proposal for a distinct licensing framework specifically for data centres. This initiative marks a significant shift in how operators within the nation's expanding digital infrastructure sector will be regulated, moving away from the current practice of classifying co-location facilities under the Network Facilities Provider (NFP) Tier 2 category.

Instead of continuing with the existing NFP-Tier 2 classification, the CA aims to introduce a standalone data centre licence category. This proposed change is designed to provide a clearer regulatory environment for the rapidly growing sector, enhancing the regulator's oversight capabilities over data centre operations across Kenya.

The Communications Authority of Kenya articulated several key objectives for this proposed standalone data centre licence. These include fostering regulatory clarity, improving visibility into data centre operations, and actively supporting investment in critical digital infrastructure. Furthermore, the CA seeks to align Kenya's regulatory approach with proportionate frameworks adopted in comparable international jurisdictions.

Under the new framework, the dedicated licence would specifically apply to companies that provide co-location data centre services, alongside any related support services. This targeted approach is intended to cater more precisely to the unique operational and business models prevalent within the data centre industry.

The Communications Authority of Kenya holds a broad mandate, overseeing the country's entire ICT sector. This includes critical areas such as telecommunications, cybersecurity, e-commerce, broadcasting, multimedia services, and postal and courier operations. Beyond licensing, the CA is also responsible for managing Kenya's numbering and frequency spectrum resources, administering the Universal Service Fund, and safeguarding the interests of ICT service users.

This latest proposal represents a further evolution in Kenya's ICT regulation. It follows a recent revision to the CA’s telecommunications market structure, which had already brought commercial data centres under the existing licensing framework, including the NFP-T2 category. The current move to a standalone data centre licence Kenya signifies a more tailored regulatory approach, specifically designed for data centre operations.

The proposed standalone data centre licence is not yet finalized or in force. The Communications Authority of Kenya has opened the proposal for public participation, inviting industry stakeholders and the general public to submit their views and comments on the suggested framework for colocation data centre operations in Kenya. Stakeholders have a 30-day window from the date the public notice was published to provide their written feedback.

This consultation period is crucial as the CA will consider all submitted views before making a final decision on the framework. Data centres are increasingly vital to Kenya’s digital economy, underpinning essential services such as cloud computing, financial technology, e-commerce, and telecommunications, all of which rely heavily on large-scale data storage and processing capabilities.

Lawyers advising data centre operators in Kenya should alert clients to the Communications Authority's (CA) proposed standalone licensing regime and the 30-day window for public comments. This presents a critical opportunity to influence the final regulatory framework and proactively prepare for new compliance obligations.

Source: Original reporting via Business Daily Africa