Kenya looks to digital to strengthen profile
Kenya looks to digital to strengthen profile
Increased government investment into the country's ICT sector, specifically the development of the Konza Tech Centre, and sustained interest in the region from key IT operations like Google, Microsoft and IBM, as well as progress of the mobile telecommunications space, means that Kenya has an opportunity to reinforce its status on the continent.
According to the Competitiveness: Catching the next wave Africa Report released by Deloitte, the projected growth by sector in Kenya (based on compounded annual growth rates between 2015 – 2034, the ICT sector stands at almost 8%.
An excerpt from the report reads, "Still more exciting is Kenya's rapid emergence as a hub of technology and innovation for the African subcontinent. Even in the face of the ongoing terrorist threat, important global IT players like Google, Microsoft, IBM, and Samsung have all chosen to set up regional offices in Nairobi, the city that pioneered the use of mobile money. Moreover, Kenya boasts one of the highest rates of urban Internet access on the continent, estimated at 72 percent of the population."
It continues, "Indeed, growing investor confidence has meant that capital inflows have financed the country's large current-account deficit, which is estimated to have exceeded 10 percent of GDP in 2014. Buoyed by the foreign response, Kenya was able to issue a US$2 billion Eurobond in June 2014 to help finance badly needed infrastructure investments. Though the budget and trade deficits remain high, they are expected to shrink in the medium term."
The Report also highlights the challenge of stability and terrorism that Kenya continues to face, citing past incidents like the Garissa University attack that left 147 people dead.
In May the Kenya Tourism Board (KTB) announced its intention to engage with CNN to utilise the media channel's digital platform as part of an online campaign to boost the tourism sector and address negative perceptions.
Recently, the East African country's government announced plans to step up the rollout of digital projects and "fill gaps left by corruption and inefficient government spending."
As reported on ITWeb Africa, the country's cabinet secretary Henry Rotich announced during the annual budget speech that the government intends moving all payments to the digital programme.
He said that over 400,000 Kenyans have registered on the e-citizen payment platform with revenue collection averaging at approximately 10 million shillings daily.
According to this year's ICT Network Readiness Index, Kenya has elevated its position by six points, and is the only country to record ICT growth on the continent moving from position 92 achieved in 2014, to 86th position this year.
GFK predicts the country's smartphone sale penetration to be 67%.