Telecoms & IT
From The Report: Kenya 2014
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The telecommunications sector in Kenya is one of the more dynamic in Africa, having garnered recognition in particular for its success in rolling out mobile money platforms and value-added services, and benefitting in a broader sense from the government’s effort to increase the role of telecoms and ICT in the country’s overall development. Wireless connectivity has acted as a leapfrog technology, enabling Kenyans to skip fixed-line connections and transition directly to mobile phones. An aggressive approach to building infrastructure has yielded significant benefits for Kenya, bolstered by growth in mobile money platforms, which has helped encourage start-ups and expand digital value-added services. The country’s Connected Kenya 2017 master plan for ICT and broadband development clarifies its step-by-step vision for growth and its needs for foreign investment along the way. The government’s determination to extend broadband access to all Kenyans is likely to reinforce the burgeoning innovation culture that has taken root and provides for a promising medium-term outlook.

This chapter contains interviews with Fred Matiang’i, Cabinet Secretary, Ministry of Information, Communications and Technology; and Bob Collymore, CEO, Safaricom.

Articles from this Chapter

Overview

Infrastructure expansion and user penetration have laid the groundwork for new growth
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The telecommunications sector in Kenya is one of the more dynamic in Africa, having garnered recognition in particular for its success in rolling out mobile money platforms and value-added services, and benefitted in a broader sense from the government’s effort to increase the role of telecoms and ICT in the country’s overall development. Kenya and South Africa lead the continent in mobile commerce, for example, and the country has worked to increase the number of subsea cable links to Africa. History The…

Analysis

The country has a thriving mobile money culture
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In a textbook example of synergy, Kenya leads Africa in terms of both mobile money take-up and financial inclusion: it has the highest usage rates on the continent, with more than 61% of adults counted as users, according to an IMF report on the topic. And in no other African country does a larger share of the population enjoy access to financial services of any type (75%), which the IMF attributes to the popularity of mobile phone payments. Mobile money has clearly been a great success in Kenya,…

Interview

OBG talks to Fred Matiang’i, Cabinet Secretary, Ministry of Information Communications and Technology
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Interview:Fred Matiang’i How can Kenya’s digital infrastructure be improved and nationwide connectivity strengthened? FRED MATIANG’I: We have invested heavily in national broadband infrastructure, and we are hoping that when the second phase is complete, the system will be something we can rely on. The fact remains that there is no single country, especially in the developing world, that has the resources to build all infrastructure by themselves. For this we need to involve the private…

Interview

OBG talks to Bob Collymore, CEO, Safaricom
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Interview:Bob Collymore What impact has devolution had on the regulatory environment for telecoms operators? BOB COLLYMORE: There is a lack of clarity as to who does what. The risk for telecoms operators is multiple taxation. People tend to extract fees from any sector that is known to be generating obvious revenue for the economy. Counties that are not adequately funded often extract revenue from sectors like telecoms with new taxes, which is not fair. Which key factors allowed for the…

Analysis

Acquisitions and exits alter the sector’s landscape
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The main group of telecommunications providers in Kenya is certain to see a change in 2014, as one of the four major network operators, Indian Essar Telecom’s yuMobile brand, announced plans to exit the market, opening up potential avenues for foreign investment, and another was rumoured to be considering an out. Finding buyers for assets on sale has been trickier given government concerns about preserving a degree of competition in the market. An initial sale plan was finalised in early September…

Analysis

The switchover to digital broadcasting has been delayed as a result of legal challenges
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A migration from analogue to digital broadcasting is on the cards in Kenya, although in March 2014 it was delayed, calling into question both when the reform would happen and how the new service would be provided. Legal challenges have pushed back the change several times from an original deadline of the end of 2012, and the issue has been appealed to the Supreme Court of Kenya. Due Process A court verdict at the appellate level at the end of March 2014 moved the deadline to switch off analogue…

Overview

Reliance on mobile broadband wanes as underwater cables connect the country
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An aggressive approach to building infrastructure has yielded significant benefits for Kenya, bolstered by growth in mobile money platforms, which has helped encourage start-ups and expand digital value-added services. The country’s Connected Kenya 2017 master plan for ICT and broadband development clarifies its step-by-step vision for growth and its needs for foreign investment along the way. Statistics According to consultancy McKinsey, the share of Kenya’s economy that was generated…

Analysis

Broadband connectivity: Key partnerships are helping more Kenyans access the internet
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Broadband connectivity has emerged as a major focus in Kenya, and is seen as a catalyst for inclusive economic growth and the transition to a knowledge-based economy. The country has seen a significant increase in connectivity, in particular in 2010, when three international cables were connected. The cost of connectivity fell by 80% in 2011, according to a report by the “Broadband Strategies Toolkit”, a report sponsored by the World Bank. Now, the focus has moved to developing local networks…