ICT
From The Report: Kenya 2017
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Kenya’s telecommunications sector plays an important role in the country’s economy. The industry as a whole has been on an upward trajectory over the last decade, as a burgeoning, tech-savvy middle class drives demand for smartphones and data, helping companies offset slowing growth in the voice and messaging segments. Operator Safaricom holds the dominant market share but competition has been increasing, and the rollout of new spectrum and a push to expand data services is creating new revenue-generating opportunities. As Kenyan residents increasingly embrace mobile broadband technology and data demand rises, the country’s telecommunications industry is set to remain on a mid-term growth path, bolstered by a diversified portfolio of innovative offerings. Kenya’s IT sector has risen to become an important contributor to economic growth, as the expansion of mobile broadband, WiMAX and fibre-optic networks has driven internet usage and subscribership in recent years. Increasing internet usage has also driven growth in both the e-commerce and start-up segments, with Nairobi standing as East Africa’s most vibrant technology hub. Although access gaps remain and high-speed internet availability is largely constrained to major urban centres, the combined efforts of the public and private sector should see Kenya meet its ICT goals by 2030.

This chapter contains interviews with Prasanta Das Sarma, Managing Director, Airtel Kenya; Bob Collymore, CEO, Safaricom; and Aldo Mareuse, CEO, Telkom Kenya Limited; James Mwangi, CEO and Managing Director, Equity Bank; Mike Macharia, Founder and Group CEO, Seven Seas Technologies.

Articles from this Chapter

Overview

Transforming communication: The sector slows in voice and SMS while gearing up for increased competition in data services and mobile money transfer
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Kenya’s telecommunications sector plays an important role in the country’s economy, benefitting from decades of infrastructure investment, early adoption of next-generation mobile broadband services and rapid growth in the mobile money transfer segment, with Kenya pioneering the latter. The industry as a whole has been on an upward trajectory over the last decade, as a burgeoning, tech-savvy middle class drives demand for smartphones and data, helping companies offset slowing growth in the voice…

Analysis

Access for all: Addressing gaps that still remain, Kenya moves closer to its goal of universal voice and broadband connectivity
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Voice and broadband connectivity has been a top priority for ICT stakeholders in Kenya since the July 2013 launch of the country’s National Broadband Strategy (NBS), a long-term initiative to transform the country into a knowledge-based economy. The NBS, which was formulated by the Communications Authority of Kenya (CA), includes a target of universal broadband access at speeds of 5 Mbps. Since the launch of the strategy, broadband and mobile penetration have increased alongside mobile internet…

Overview

Calling the shots: Prasanta Das Sarma, Managing Director, Airtel Kenya; Bob Collymore, CEO, Safaricom; Aldo Mareuse, CEO, Telkom Kenya, on improving mobile services
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Interview:Prasanta Das Sarma, Bob Collymore and Aldo Mareuse In what ways can mobile operators encourage higher levels of data consumption? PRASANTA DAS SARMA: Data consumption is still the main driver of telecoms revenue growth around the globe. Mobile operators can continue to propagate their networks by expanding 3G coverage, rolling out 4G where it is possible, and introducing more cost effective devices and solutions. Because customers can be wary of low cost devices, the goal is to…

Overview

Expanding usage: Internet penetration is growing as the country aims to maintain its status as a technology centre
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Kenya’s IT sector has risen to become an important contributor to economic growth, as the expansion of mobile broadband, WiMAX and fibre optic networks has driven internet usage and subscribership in recent years. Rising private sector investment in new IT infrastructure will support the government’s efforts to achieve universal internet access, as highlighted by both the Kenya Vision 2030 economic development strategy and the corresponding National Broadband Strategy (NBS). Increasing internet…

Interview

Mobile money: James Mwangi, CEO and Managing Director, Equity Bank, on the convergence of telecoms and financial services
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Interview: James Mwangi How would you rate the competitiveness of the telecoms sector in Kenya? JAMES MWANGI: The telecoms space in Kenya isn’t very competitive because it has a dominant player, Safaricom, occupying approximately 90% of the market share. The other operators end up playing an underdog role, which makes business challenging in many ways. Pricing in the sector is not based on competitiveness, service or products; instead it’s market control that is driving these things. As a result,…

Interview

Nursing start-ups: Mike Macharia, Founder and Group CEO, Seven Seas Technologies, on incentivising entrepreneurship
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Interview" Mike Macharia What reforms could promote the development of the ICT sector at the start-up level? MIKE MACHARIA: The narrative around start-ups and innovation labs has somewhat outlived its time. The conversation now is around specific scale-up opportunities for small and medium-sized enterprises (SMEs). There are IT companies that have passed proof of concept, but now need to find a method for growth. Innovation centres are already well developed, and there is now a need for growth-focused…