Sustained Uptake of ICT Expected to Support Economic Growth and Modernization in Kenya

By Soko Directory Team / Published June 6, 2016 | 8:06 am

Information and Communication Technology (ICT) is increasingly becoming an important enabler of economic growth. Over the years, increased deployment of fiber optic cables, Worldwide Interoperability for Microwave (WIMAX) and Very Small Aperture Terminal (VSAT) technologies have seen a steady growth of the internet and broadband market, which have resulted in improved competitive data services to consumers. Further, the Government has continued to focus on the implementation of e-government to enhance the uptake of ICT in its operations for effective and efficient delivery of services to its citizens.

According to the 2016 Economic Report by Kenya National Bureau of Statistics, the sustained uptake of ICTs in the country is expected to continue supporting economic growth and modernization as well as enabling optimization of production in every sector of the economy. In 2015, the country successfully concluded the digital migration for TV broadcasting ahead of the global deadline of 17th June 2015. The switch-off of analogue signals started on 30th December 2014 and was finalized on 30th March 2015. Key ICT indicators show that the sector’s growth slowed in 2015 compared to 2014. However, the growth remained robust because of resilient expansion in mobile telephony networks and increased uptake of internet services.

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The freeing up of valuable portions of the TV broadcast spectrum that emanated from the successful completion of the digital migration facilitated significant growth of digital TV stations from 36 in 2014 to 62 in 2015. This has benefited the consumers through more options, better sound and picture quality. In 2015, mobile telephony continued to revolutionize the uptake of ICT services, in particular, the mobile broadband and mobile money services.

Consequently, mobile telephone subscriptions increased leading to a rise in penetration from 78.3 percent in 2014 to 85.4 percent in 2015. Internet subscriptions increased significantly from 16.4 million in 2014 to 23.9 million in 2015. This resulted in increased internet and broadband penetration from 38.3 percent and 9.9 percent in 2014 to 54.2 percent and 16.4 percent in 2015, respectively.

Similarly, data speed for computer modems and transmission carriers increased by 66.9 percent to 20,293 bits per second per capita (BPs/person) owing to availability of fiber optic. However, the mobile telephone capacity decreased by 3.5 percent due to the exit of Essar Kenya (YU) limited from the Kenyan market. The fixed network capacity declined sharply due to the decommissioning of fixed wireless in 2015, which resulted in a reduction of its penetration from 0.52 percent in 2014 to 0.19 percent.

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