KIAMBU, Kenya — Entering Tatu City, located on the outskirts of Nairobi, Kenya, feels like stepping into a different realm altogether.
Even the most daring drivers tend to slow down and avoid littering, all thanks to the presence of surveillance cameras and strict enforcement of penalties for violations like speeding and throwing trash. This strict adherence to regulations has enhanced the city’s allure for its approximate 5,000 residents who have chosen to call Tatu City home since it opened its doors four years ago.
“Tatu has more law and order than other places,” remarked Valerie Akoko, a digital content creator who made the move two years back. “I’ve never seen Tatu City dirty.”
Spread over 5,000 acres, Tatu City aims to embody its name: a privately owned city projected to eventually host a population of 250,000. Currently, the city supports 88 businesses, employing around 15,000 individuals. Notable enterprises include CCI Global, operating a call center with a capacity for 5,000 seats, and Zhende Medical, a manufacturer of medical supplies from China.
Similar developments can be found globally, but in sub-Saharan Africa, supporters of such ventures are hopeful that the emergence of new cities can help tackle the continent’s urbanization challenges. While urban growth has significantly alleviated poverty in many regions, it has not produced the same outcomes in Africa.
As populations move to urban areas, historical data indicates an increase in productivity, wage growth, and enhanced national wealth. However, urbanization in Africa has often failed to catalyze similar economic advancements.
The United Nations predicts that Africa’s urban population will swell by 900 million by 2050, exceeding the combined current urban populations of Europe and North America. Yet, sub-Saharan Africa continues to urbanize amidst widespread poverty.
“Many towns and cities in Africa currently lack the tax base necessary for investing in the infrastructure needed to accommodate the surge in population expected in the coming years,” stated Kurtis Lockhart, the director of the Africa Urban Lab, a research center based at the African School of Economics in Zanzibar.
Issues such as fragile property rights and political instability can exacerbate these challenges. Tatu City itself has faced hurdles with political figures and businessmen in Kenya. A ruling by the London Court of International Arbitration in 2018 favored the city’s multinational owner, Rendeavour, following a dispute with local partners, including the former governor of the central bank. This legal battle set back project development for several years.
Last year, Preston Mendenhall, Tatu City’s head in Kenya, made headlines when he accused the county governor of extortion, alleging a demand for land valued at $33 million to approve the city’s updated master plan. The governor has denied these claims and is suing for defamation, with no final decision on the matter yet.
Despite these obstacles, advocates argue for the necessity of new urban developments alongside modern infrastructure. The Charter Cities Institute, a Washington-based nonprofit organization, posits that, if executed correctly, such initiatives could drive economic growth, create jobs, and lift countless individuals out of poverty. Tatu City is considered a potential model for these aspirations.
Nevertheless, launching new urban developments is challenging, with numerous initiatives having failed across Africa. A few projects have exhibited promise, such as Angola’s Quilamba city, which began construction in 2002 and now houses over 130,000 residents; it was developed by a Chinese state-owned enterprise but is owned by the Angolan government.
Experts estimate that there may be nearly a dozen ongoing new city ventures across Africa, from Zanzibar to Zambia, with the potential for success akin to Quilamba. Among these, Tatu is noted as the most developed, accommodating approximately 26,400 people who live, work, or study there.
Consensus points toward the involvement of the private sector as vital in African urbanization, given that many countries struggle to generate sufficient funds for necessary investments. Rendeavour, boasting a multibillion-dollar balance sheet, is deemed capable of making impactful contributions.
However, relying exclusively on private interests to manage city development can pose issues, such as exacerbating existing inequalities. Properties at Eko Atlantic, a new city project located near Lagos, have an average price tag of $415,000, making them unattainable for most Nigerians.
“Startup cities can provide innovative hubs and alleviate strain on overcrowded cities,” said Anacláudia Rossbach, executive director of UN-Habitat. “Nonetheless, to have a substantial impact, these developments must emphasize inclusivity and affordability, ensuring access to all socioeconomic groups rather than being exclusive enclaves for the affluent.”
In Tatu City, a one-bedroom apartment is available for around $45,500 — still a stretch for many Kenyans but more attainable for some within the emerging middle class. Currently, Kenya’s per capita GDP sits at $1,961, as reported by the World Bank in 2023.
The project’s collaboration with the Kenyan government has resulted in Tatu City being designated as a special economic zone, granting companies there various tax benefits and incentives, which experts view as a successful example of public-private partnership.
Tatu City stands out for its clear governance and the provision of services that are frequently lacking in other Kenyan locales, such as a dedicated water supply and energy system. Although it falls under national jurisdiction, Tatu City management enforces its own regulations regarding traffic and construction, with all development plans requiring managerial approval.
“The infrastructure, utilities, security, and regulations make this place one of the best,” claimed Sylvester Njuguna, a local restaurant owner.
Positioned just 12 miles (19 kilometers) north of Nairobi, Tatu City benefits from proximity to the capital’s labor markets, setting it apart from many startup cities located far from urban centers.
According to Lockhart from the Africa Urban Lab, successful new city projects often hinge on their closeness to major urban areas, housing reputable anchor tenants like CCI Global, maintaining quality schools, and being effectively managed to adapt to market demands. Tatu City fulfills these requirements and has developed organically, much like Rendeavour’s previous city initiatives in countries such as Ghana, Nigeria, Zambia, and the Congo, as noted by Mendenhall.
“We are constructing according to market needs,” he explained. “We are not laying out all the infrastructure from day one.”
