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Originally published by Techish Kenyatech
May 10, 2026
2h ago
It Wasn’t Just the Grid. Microsoft Asked Kenya for a Cheque the Government Couldn’t Write.

Bloomberg reports Microsoft and G42 asked Kenya to guarantee annual capacity payments. The government couldn't, and the talks broke down...
✨ Key Highlights
The planned $1 billion Microsoft–G42 data centre in Kenya did not falter solely due to grid limitations. Negotiations stalled because Microsoft and G42 requested an annual payment commitment for computing capacity from the Kenyan government, which it could not fulfill.
- Microsoft and G42 sought an annual revenue commitment from the Kenyan government for computing capacity.
- The breakdown occurred because the Kenyan government could not provide the requested financial guarantee.
- This financial commitment, akin to take-or-pay clauses in power agreements, proved politically difficult for the Ruto administration, especially with ongoing IMF negotiations.
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