The Technological Environment in Kenya
Technological Impacts in Kenya:
Kenya is the regional ICT hub of East Africa, with the country being the leader in broadband connectivity, general ICT infrastructure, value-added services (VAS), mobile money, and mobile banking and FinTech services. The country’s ICT sector is set to account for up to 7% of the country’s GDP through IT-enabled services
- In April 2022, the government launched a 10-year digital masterplan to align with global technological advancements and enhance the rise of Kenya’s digital economy. The plan identifies 4 key pillars- digital infrastructure, digital skills, and driving digital innovation for entrepreneurship.
- Kenya has 66,646 total subscriptions for telephone-fixed lines, ranked 149th highest globally(2020). Total subscription to mobile cellular is 61,408,904, making it the 26th highest globally (2020).
- Kenya has a total of 66,646 fixed telephony subscriptions, ranking 149th in the world in 2020. The total number of mobile phone subscriptions she has is 61,408,904, making the 26th most in the world in 2020.
Kenya’s telecommunications market continues to undergo significant changes due to increased competition, improved international connectivity, and rapid development of the mobile market.
The countries are directly connected by a series of submarine cables. Additional internet capacity means that the cost of internet access has dropped significantly in recent years, making services affordable for a much larger segment of the population.
- Several agreements have been made to share fiber optic infrastructure. This has led to a significant increase in the number of fiber optic broadband connections in recent years.
- Much of the progress in the broadband segment is due to the government’s revised National Broadband Strategy updated with targets by 2030, relying heavily on LTE and 5G-based mobile broadband platforms in 2022.
29.5% of the population used the internet as of 2020, ranked 22nd highest in Africa and 126th highest globally.
- The innovations index for Kenya is 27.5 points above Africa’s average of 22.63, sitting 5th in Africa and 85th globally in 2021.
- The IT Exports (% of total goods exports, 2020) for Kenya was 0.31%, the 4th in Africa and 68th globally.
- High tech exports (% of manufactured exports, 2020) for Kenya was 5.11%, 5th in Africa and 78th globally.
- Fixed-line subscriptions stand at less than 1 per 100 persons; multiple providers in the mobile-cellular segment of the market fostering a boom in mobile-cellular telephone usage with tele-density reaching 114 per 100 persons in 2020.
- In November 2020, the government passed the Data Protection Act (DPA) and established the Data Protection Commissioner Office.
- The country’s telecommunications sector has registered double-digit growth in the last decade with a high penetration of 3G and 4G LTE coverage
Downsides:
- In August 2020, the Ministry of ICT published a new policy requiring foreign companies to have 30% local shareholding, a move that has been seen as a major setback for long-term foreign investments into the ICT sector.
