Kenya and Germany’s development agency GIZ are working to finalise agreements for the second phase of the Digital Transformation Centre (DTC II), following feedback from the National Treasury. Talks held on October 27, 2026, focused on unresolved tax-exemption matters and the steps required to move the programme into implementation. The initiative forms part of a wider partnership to improve Kenya’s digital capabilities, institutional capacity and environment for innovation.
Key Overview
- DTC II agreements: Kenya and GIZ are finalising implementation arrangements following National Treasury feedback.
- Tax exemptions: Outstanding approvals remain a key issue before full implementation.
- New leadership: Sylvia Lautenbach was introduced as programme director and acting programme manager for DTC II.
- Government coordination: ICT Principal Secretary John Tanui met a delegation led by GIZ’s Christoph Zipfel.
- Funding details: The phase-two budget, delivery timetable and full workplan have not yet been publicly confirmed.
Kenya and GIZ Work Through Outstanding Approvals
The latest implementation discussions brought together ICT and Digital Economy Principal Secretary John Tanui and a GIZ delegation led by Dr Christoph Zipfel, programme director for sustainable economic development.
The meeting followed comments from Kenya’s National Treasury on the proposed agreements. Tax-exemption arrangements remain among the matters requiring resolution, making the latest talks an administrative step towards rollout rather than confirmation that DTC II is already fully operational.
Such exemptions can affect how externally supported programmes procure eligible goods and services. The precise tax treatment depends on the applicable agreements and approvals; details of any exemptions granted specifically to DTC II have not been published.
Tanui said the partnership should lead to practical results for Kenya’s digital economy, including stronger institutions and a more supportive environment for innovation. Both parties reaffirmed their intention to advance the programme’s priorities.
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New Programme Leadership Announced
The discussions also introduced Sylvia Lautenbach as the new programme director and acting programme manager for DTC II. Her appointment places a named lead at the centre of the next implementation stage.
A separate account of the meeting confirmed her introduction alongside the discussions on agreements and tax exemptions.
The Digital Transformation Centre is supported through German development cooperation and works with public institutions, private companies and the innovation ecosystem. For businesses and startups, the value of the next phase will depend on the projects ultimately approved, their eligibility rules and how programme support reaches participants.
Programme Fits Kenya’s Digital Economy Strategy
DTC II is being advanced as Kenya pursues the National Digital Master Plan 2022–2032. The blueprint identifies four broad priorities: digital infrastructure, government services and data, digital skills, and innovation-led enterprise development.
The country has also adopted a National AI Strategy for 2025–2030, built around AI infrastructure, data governance, research and commercialisation. Germany and GIZ were among the partners acknowledged in developing that strategy.
These national priorities offer context for DTC II, although the programme’s specific phase-two activities and funding allocations should not be assumed to cover every area of the broader digital agenda.
Data Protection Cooperation Could Support Rollout
The preparations coincide with discussions on data protection cooperation between Kenya’s Office of the Data Protection Commissioner and GIZ’s Digital Transformation Centre team. Those talks explored potential collaboration on responsible handling of personal data as the centre moves towards its second phase.
This is significant because greater use of digital public services and emerging technologies also increases the need for safeguards, reliable institutional oversight and public trust.
The next measurable milestone for DTC II will be completion of its implementation agreements and clarification of any outstanding tax matters. Until the parties publish a signed framework and detailed programme documentation, its budget, precise timetable and expected deliverables remain unconfirmed.
Sources: TechTrendsKE / Startup Kenya / ICT Authority / Ministry of Information, Communications and the Digital Economy / TechReviewAfrica / Communications Authority of Kenya
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