The ICT sector in Kenya
The Information and Communication Technology (ICT) sector plays a
crucial role in the Socioeconomic Development of the Country. The
Government has recognized the importance of ICT as a powerful tool in
accelerating the productivity of all sectors and empowering people to
meet the challenges of the 21st century. To optimize the sector’s
contribution to the development of the entire economy the government is
currently offering investment opportunities to the private sector.
The ICT sector in Kenya provides investment opportunities in the following areas under the
Public-Private Partnership arrangement.
1. Data Centre and Disaster Recovery Centre
A secure information system requires a data center and recovery site.
The government will partner with the private sector to build a National
Data Centre (NDC) and a Disaster Recovery Centre to provide world-class
services to both public and private sector operators.
The services to be provided will include disaster surveillance and
management and early warning. The operations of the NDC will be managed
and controlled from a Network Operations Centre (NOC) that will need to
be established. The establishment of this data center will include site
identification, construction of ideal premises, procurement of equipment
and requisite services, and establishment of the NOC. The projects are
expected to be undertaken through Public-Private Partnerships.
2. Deploying of Digital Broadcast Network
The government has developed the analog to digital broadcast
switchover strategy by 2012. The government is proposing to initiate a
public-private partnership for deploying a digital broadcast network to
provide signals to broadcasters countrywide. This will improve the
signal quality, and increase broadcast coverage area countrywide.
3. Rolling out of E-government services
The government is digitizing most of its services to improve service
delivery. The government is, therefore, looking forward to partner with
the private sector in PPP arrangement to roll out e-government services.
Major areas include motor vehicle registration, pension services,
judiciary case management, land registration, and many others.
4. Multimedia Technology Parks (MTPs)
The government considers the establishment of an ICT Park as a top
priority since they have a significant potential to contribute to ICT
infrastructure development in particular and enhancement of economic
growth of the country in general. The government has already
identified the land where the first ICT Park would be established. This
will be a Public-Private Partnership initiative where investors will be
invited to venture.
5. Software and Hardware Development
The government is promoting locally produced software and hardware in
order to help build skills and capacity in the assembly of the various
hardware components into complete IT equipment. Because of the favorable
fiscal policy environment such as tax holidays on ICT hardware, and the
relatively low cost of domestic labor, it is anticipated that per-unit
price of such locally assembled IT equipment will be relatively much
lower than an imported one.
Investors are therefore invited to take advantage and invest in the
development of software and assembly of hardware. Jomo Kenyatta
University of Agriculture and Technology, University of Nairobi,
Strathmore University and Kenya College of Communications Technology
have been selected as “Incubation centers” to run this program.
6. Business Process Outsourcing Park (BPO)
The government is committed to market Kenya as a premier center of
excellence in Information and Communication Technology. The government,
therefore, plans to develop special economic zone in Nairobi that will
be served by superior telecommunications infrastructures, affordable and
readily available energy and that is easily accessible to international
transport facilities. The Zone will encompass Multimedia Technology
Parks, Malls, Office Parks, Industrial Park and Recreational Facilities
among others. The special
economic zone is expected to provide opportunities that will stimulate
Business Process Outsourcing (BPO) activities across the borders.
To achieve this, the government will partner with the private sector
to construct a state-of-the-art ICT Park within the zone. This would, in
turn, seek to transform the country into a major ICT hub particularly
for the Business Process Outsourcing (BPO) which holds a huge potential
for job creation and economic development. The parks will be used to
promote locally produced software and hardware in order to help build
skills and capacity in the assembly of the various hardware components
into complete IT equipment.
The government has already identified 100 acres of land in Athi River
which is only 30 Kms away from Nairobi City Central Business District.
The area is along Mombasa road and is well served by transport
telecommunications and energy infrastructure. This will be a
Public-Private Partnership Initiative where international investors will
be invited to venture. Investors are therefore invited to take this
advantage and invest in hardware and software development locally.
7. Konza Technology City
Konza Technology City will be developed on a Greenfield site 60 km
from Nairobi easily accessible via Mombasa-Nairobi Highway. Kenya’s
Vision for the project centrally positioned within regional population
hub of 110 million, is to create 200,000 jobs in business outsourcing
services and related sectors over 20 years (to be implemented in Four
Phases). Approximately 5000 acres of land for the project has been
acquired and fenced. The estimated cost of Phase 1 (2012-2016) is USD
2.3 billion for both infrastructure and project development with
investment make up of USD 1.3 billion. The Government will fund backbone
infrastructure and master planning.
8. Development of International Teleport (Exchange Point) in Mombasa- Co-location Facility
Co-location facility of Communication Interchange including a Primary
and Secondary Network operations Center that will manage both National
and Regional Fibre Network and that aims at transforming Mombasa into an
International Teleport (Exchange Point) such as London, New York, and
Amsterdam is key investment opportunity. Posta Towers in Mombasa has
been purchased for this purpose.