Julisha Phase 2-KICTB Survey Results Phase II - Results Launchv2

Kenya ICT Board
Monitoring and Evaluation Survey Results

(Phase II)
Francis Hook
Regional Manager
IDC East Africa
19th February 2013
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Agenda
Market Overview (Key Indicators 2010, Kenya IT Market Value (US$M)
Forecast 2010-2015, Kenya IT spend by Vertical segments)
ICT Ecosystem Analysis Profiling of top systems integrators in the market,
challenges faced, national and regional presence and the market outlook.
Residential Usage and Penetration Highlights
Benchmarking Kenya
Kenya ICT Market Overview
Market Overview
Going by various Key Performance Indicators (KPIs) and IDC's market sizing for
the Kenyan ICT market, the sector has performed well with good growth in
value, usage and access (across most sectors) between 2010 and 2011.
As more infrastructure is put in place the ICT expenditure focus will shift to
services (maintenance, support, implementation, customization, etc) and
software (custime software development, mobility, business analytics, etc).
The cost of devices and internet services still remains a constraint that keeps
more users from adopting ICT and current users from increasing their usage.
Less advanced regional markets (in terms of skills, ICT sophistication and size
of projects) in Eastern Africa continue to attract the attention of several local
players who are expanding their presence to these markets.
Overall the Kenyan ICT market continues to thrive and from 2013 onwards, the
most notable issues will include: the new government structure as county
governments wean themselves away from national governments to become
more autonomous, increased investment by vendors, increased venture capital
activity aimed at start ups and developments with the 4G shared network
infrastructure.
Market Overview
Kenya ICT Market Key Indicators
Indicators
2010
2011
Change
%
20,209.56
52,938.00
162%
International Internet bandwidth, Mbps per 10,000

population
4.2
7.7
83%
Number of Computers per 100 inhabitants
2.4
2.7
14%
percentage of households with a personal computer
6%
8%
27%
Total number of Internet Subscriptions
4,716,977.00
6,152,687.00
30%
Total number of internet users
10,199,836.0
0
17,382,034.00
70%
380,748.00
283,546.00
-26%
24,968,891.0
0
28,080,771.00
12%
18,000.00
24,322.00
Volume of international traffic (Mbps)
Total number of main fixed lines (fixed lines plus

fixed wireless)
Total number of mobile subscriptions
Number
.Ke domain
names
Copyright
IDC. of
Reproduction
is forbidden
unless authorized. All rights reserved.
35%
Market Overview
2010 Data
Connectivity development
1
Volume of international traffic (Mbps)
2
2011 Data Change

(%)
20,209.00
52,938.00
162.0%
4.2
++7.7
83.3%
2.4
2.7
13.9%
6.3%
8.0%
27.0%
International Internet bandwidth, Mbps per 10,000

population++
Number of Computers per 100 inhabitants
% of households with a personal computer
Total number of Internet Subscriptions
4,716,977
6,152,687
30.4%
Total number of internet users
10,199,836
17,382,034
70.4%
% of population with Internet Access
0.26
0.36
40.2%
Internet subscribers as % of total population
11.5%
14.8%
28.6%
380,748
283,546
-25.5%
10
Total number of main fixed lines (fixed lines plus fixed

wireless)
Total Fixed line penetration (per 100 inhabitants)
11
Total number of mobile subscriptions
12
97.0%
72.0%
-25.8%
24,968,891
28,080,771
12.5%
63.2%
71.3%
12.8%
13
Total penetration of mobile services (per 100

inhabitants)
Total teledensity
64.2%
72.0%
12.2%
14
Number of .Ke domain names
18,000
24,322
35.1%
15
IT Spending per capita
$18.5
$24.4
32.1%
++per user from 2011

Market Overview
Broadband demand is not constrained by cost or access
22
Price of Internet Access for 512 Kbps
23
Fixed broadband Internet access tariff ($ per month)
24
Dial up Internet tariff ($ per Month)
25
Number of BPO jobs
26
Number of BPO seats
$22.00
$22.00
0.0%
$39.80
$37.90
-4.8%
$29.5
$29.3
-0.7%
12,500
13,100
4.8%
5,000
5,696
13.9%
Universities are connected to broadband services
27
Number of educational institutions connected to national
network
60
74
28
29
Number of educational campuses connected to national

network
Number of students connected to broadband
65
8.3%
78
5.4%
176,000
250,000
42.0%
30
Number of universities connected to broadband
15
29
93.3%
31
Number of networked PCs per 100 students
-16.7%
++per user from 2011

Highlights
International traffic grew by an impressive 162.0% between 2010 and 2011 and mainly
riding on increased internet subscriptions that were mainly comprised of mobile data
connections. .
The total number of households with a personal computer (PC) grew from 6.3% to
8.0%.
Internet users was recorded as 17.38 million users from 10.99 million recorded during
the previous year.
Fixed lines declined to 283,546 in 2012 from 355,493 in 2011, representing a decline
of 25.5% during that period.
The total number of students connected to broadband rose from 176,000 in 2010 to
250,000 in 2011 indicating an increase of 42% increase year on year.
The number of universities connected to broadband services increased from 60 in
2010 to 65 in 2011 and mainly attributed to some educational institutions that have
multiple campuses getting connected to KENET.
The number of registered government domain names reduced in 2011 largely due to
lack of renewal of domains mainly by local government entities (municipal and county
councils). Most previously registered domains have been allowed to lapse.
Market Overview
ICT Spending by Technology Areas
Kenya ICT Market Size 2011 and Forecast to 2016
ICT market spending is expected to grow at an annual compound growth rate of 9.1% between 2011
and 2016 to reach a value of US$1,596.8 million. During that period the proportion of hardware
spend will decline from 81.1% to 75.7% giving room for growth of services from 10.4% to 15.1%, and
software from 7.8% to 9.2% in 2016
Market Overview
Spending by Vertical Sectors
10
Kenya ICT Ecosystem
11
Kenya ICT Ecosystem

Structure Systems Integrators
CHANNEL
Vendors
REVENUE BREAKDOWN
80% software or hardware
20% services
REMARKS
Services revenue mainly from
multinational companies and large
accounts
95% -100% software or

hardware
0-5% services
Not much value addition very few

value added distributors in the local
market.
Tier 1
Systems
Integrators
70% hardware
20% services
10% software
Value addition a key revenue

stream
Tier 2
Systems
Integrators
75% hardware
15% services
10% software
Some value addition and smaller

projects
Very little or no value addition.
Retail
90% hardware
5% services
5% software
Distributors
12
Kenya ICT Ecosystem

Highlights 1/2
Vendors In Kenya there are between 20-30 vendors with a direct presence in the
country with the main function of business and channel development, product support,
capacity building, and in some cases dealing directly with big companies (multinational
companies and large accounts)/
Distributors There are between 20-30 distributors of software and hardware, with some
focusing on very niche markets and others distributing products across the channel to big
systems integrators, telecommunication providers. A good number of distributors act as a
vendor presence in the market.
Tier 1 VARs These would number between 30 and 40 systems integrators mostly with
nationwide presence and targeting mainly the enterprise sector with infrequent business
among the Small and Medium Enterprise (SME) segment. In this layer there is a lot of
emphasis on value addition and therefore IT Services contributing as a major revenue
stream.
Tier 2 VARs - This layer comprises market players focused mainly on the SME segment
with lesser nationwide presence and in some cases focused on regions outside Nairobi
(e.g. Coast, Rift Valley, Central). There are anything between 80 and 120 players in this
segment.
Retail market players Players focused mostly on "off the shelf" types of business,
moving hardware and selling single user software licences, peripherals and so on. Their
main focus is on the consumer segment but often supplying the SMB segment with good
that do not require support or significant after sales service.
13
Kenya ICT Ecosystem

National and Regional Presence
National presence
Less than 40% of the local companies have a

presence in Mombasa, followed by Kisumu,
26.3% and Eldoret 10.5%.
Some towns are viewed as satellites of other
nearby towns, especially in the Nyanza, Rift
Valley and Western Provinces. E.g. players
may elect to have a presence in Eldoret in
order to reach out to Nyanza and Western
provinces.
Regional presence
While Uganda is a smaller market than

both Ethiopia and Tanzania, more local
players have invested there (23.9%
compared to 14.1% and 19.7%
respectively in the other two countries.
This is mainly due to the more relaxed
investment environment in Uganda.
14
Kenya ICT Ecosystem

Kenya as a regional Hub
Southern Sudan has recently become a main focus area for local players
despite the high risks of operating in that country and its high dependence on
oil for foreign exchange. Nonetheless, some companies are willing to take
risks, especially to pursue opportunities in government and with International
NGOs.
While Tanzania as a member of both the East African Community (EAC) and
the Southern African Development Community (SADC) is more inclined
towards more cordial relations and trade with SADC countries. Indeed
elsewhere in the economy there are many investments from South Africa in
the mining, energy and financial sectors.
Among the other countries where about 17% of local players either have a
presence or are undertaking major projects include:
Democratic Republic of Congo; Ghana; India; Malawi; Mauritius;
Mozambique; Nigeria; UAE; Zambia; Zimbabwe;
15
Kenya ICT Ecosystem

Challenges faced
Challenges
Limited and Expensive Financing for projects and importation of goods.
Long sales cycles prolonged procurement cycles as well as cyclic spending
with government . Doing business with government is also cited as a major
problem area owning to protracted procurement cycles.
Inconsistent importation regulations and tariffs Import duties and other
levies are frequently cited as irregular and mostly stemming from either a poor
understanding of different ICT goods or poor definitions of the different classes
of ICT products.
Lack of ICT skills This is problem not unique to systems integrators and cuts
across the entire ICT landscape from the supply side to the demand side.
Theft and piracy the culture diminishes value especially for local developers
16
Kenya ICT Ecosystem

System Integrators Market Outlook
Systems Integrators are optimistic about the local market growth and among the
main areas they see good opportunities for improvement to support growth
include:
Development of Skilled resources;
Skills transfer plans (by vendors) to supported channel;
Business Analytics needs are growing;
Assembling complementary product portfolios;
Increase products portfolio
National and regional expansion to reach into other towns and cities and the
region.
17
Residents Survey Highlights
18
Devices at home & Household

Composition
Q15. How many of each of the following types of devices do you have at home?
Type
Desktop
Laptop
Television Set
Fixed telephone line (CDMA, Fixed wireless, Dial up)
Mobile cellular telephone/Handphone/Mobile phone
Satellite Antenna (Satellite dish)
Radio set
Average Number
per HH
0.33
0.52
1.00
0.01
1.84
0.23
0.87
Maximum Number
per HH
2
3
3
1
7
1
3
Traditional devices are more available at households than advanced ones

There is almost 1 TV set and 1 radio set in each of the surveyed HH
Mobiles are more common than other items (almost 2 per HH)
19
=AllTotal
Sample
Copyright IDC. Reproduction is forbidden unlessBase
authorized.
rights reserved.
(n=750)
Residents Survey Highlights

Internet Usage at home
Internet Home Penetration by
Location
. Do you have an Internet connection at home?
41% 49%
66%
59% 51%
50%
34%
49%
51%
32%
33%
64% 72%
65%
68%
35%
67%
36% 28%
50%
Internet Home Penetration by SCL

Yes No
Base : Total Sample
(750)
43%
57%
42%
58%
AB
C1
63%
37%
C2
Yes
Internet usage increases by SCL levels. It is highest in Nairobi (59%)
Internet usage increases by SCL levels. It is highest in Mombasa (37%)
85%
95%
15%
5%
E
D
No
20
= The
figureunless
in parenthesis
represents
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is forbidden
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the base of the respective

Type & Speed of Connection
Q18. What type of Internet
connection do you have at
home?
Q19. What is the speed of your main

internet connection at home?
Broadband delivering speed of 256 kbps to less than 1 Mbps
Mobile broadband / narrowband Connection /modem
32%
87%
Broadband delivering speeds from 1Mbps to less than 4Mbps
ADSL line (dedicated line for internet (broadband) 4%
27%
Broadband delivering speeds from 4Mbps to less than 8Mbps
19%
Dial up connection (using fixed phone line connection) 1%

Broadband delivering speeds higher than 8Mbps
Other connections
16%
34%
Don't know
Base : Internet users
(210)
6%
Base : Internet users but NOT VIA DIALUP (210)
Dial-up is phased out by other developed internet connections
Connections with speed less than 1Mbps are used in 41% of the HH
21
Inhibitors for Not Using internet at home

Q17. What are the reasons for not having
internet connection at home till now?
We dont have PC
63%
We cant afford internet subscription
35%
I use internet in other places, and there is no need to have one at home
33%
There are no internet cables / infrastructure in our neighborhood

I dont know how to use internet
23%
11%
Internet connections are poor in terms of quality 3%
Base : No Users of Internet

(540)
22
Type of PC, Internet Device & Mobile

Service Used
Q25. What kind of PC do you use?
Desktop
Laptop
Media Tablet
Included
media tablets
in Phase II
78%
61%
14%
Base : Users of PC (493)

Q31. Which of the following devices have you used
to access the Internet in the past 12 months?
Desktop
78%
Laptop
60%
Other mobile phone / internet enabled mobile phones
57%
Smartphone
Media Tablet
37%
Q60. Which kind of mobile service do

you use?
Prepaid
96%
Postpaid 3%
Both 1%
9%
Base : Users of Internet

(570)
Base : Users of Mobile

Phone (746)
23
Purposes for Using PC
Q27. What is your primary purpose for using the PC?

2012
2011
83% Personal usage
Communication
Entertainment
66%
Work
57%
71%
Entertainment
66%
Communication
64%
Education
Other Personal purposes
45%
54%
Work
Education
36%
28%
Respondents use PC mainly to perform personal task, especially old individuals 45+ years
Entertainment and education purposes drive respondents 15-34 yrs old to use PC. These reasons decrease significantly
among older users
Old males (45+ yrs) tend to use PC for work reasons much more than other demographics.
24
Purposes for Using the Mobile Phone
Q59. Which of the following services do you actively use on your mobile device?
2012
2011
SMS
98%
Voice services
97%
Voice services
97%
SMS
96%
Social media
65%
Web Browsing
Access to social media websites
45%
Web Browsing
42%
57%
Access to Email
52%
Entertainment
37%
Entertainment
50%
Access to Email
35%
Chatting (IM)
PIM (personal information management)
MMS
41%
PIM
35%
18%

Phone (721)
Chatting
31%
24%
Sending MMS
15%
Phone (746)
Calling and texting share respondents' main usage of the mobile (around 97-98%)
The usage of internet enabled services and PIM mainly attracts the young category (15-34 yrs). Their usage decreases
by age
25
Financial Transactions on the Internet

and Mobile
Type of transition, Number of online Purchases
Q38. Which of the following on-line / electronic (through internet or mobile) services
have you used in the past 12 months?
Top up of Airtime through Mobile Money Transfer
96%
Payments (utility & mobile bills etc) through Mobile Money Transfer
55%
Buying of product through Mobile (Mobile Money transfer)
36%
Selling of product through Mobile (Mobile Money transfer)
34%
Payments of School fees through money mobile transfer
23%
Banking (online Banking transaction)
7%
Payments (utility & mobile bills etc) through Internet
6%
Buying of product and services through internet
5%
Selling of product and services through internet
3%
Base : Respondents Using Online Banking or

purchases (618)
4 of the top 5 e-transactions are done via mobile
Online e-transactions are almost not present and include online banking (7%), utility payments (6%) and the purchase of
products and services (5%)
26
Tasks Performed on the Internet

Q34. Do you use the Internet to perform any of the following tasks?
Search for information
Communicate with colleagues
Downloading movies, images, music, watching TV or video, or listening to radio or music on-line
Communicate with customers/citizens/ residents
Getting information about goods or services
Education and learning activities
Playing or downloading video games or computer games
Finding, downloading, and installing software
Reading or downloading on-line newspapers or magazines
Using peer-to-peer file sharing for exchanging documents, movies, music, etc.
Keeping viruses, spyware, and ad-ware off your computer
Schedule business appointments
Getting information from general government organizations
Checking a receipt of payments
Purchase or place orders goods and services
Online banking
Interacting with general government organizations
75%
64%
59%
37%
33%
33%
30%
29%
26%
25%
23%
16%
14%
8%
8%
6%
6%

(570)
The main purposes for using the internet are search for information (75%), communication with colelagues (64%) and
downloading (59%) exceeding by far other reasons.
Internet users 35+ yrs old perform business-oriented internet tasks (communicating with customers, scheduling
appointments, etc.) more than younger users who look for more social, entertaining or educational activities online
27
Satisfaction With Internet Service

Q46. The following questions are about your satisfaction with the Internet service
you use. I will ask you about various characteristics of the service, for each one
please select a number from 1-7, where 1 = Very dissatisfied, and 7 = very
satisfied
Cost of your Internet service 11% 20%
Value for money spent on your Internet service 15%
69%
24%
61%
Reliability of your Internet service 12% 18%

Speed of your Internet service
Customer support after sales
18%
20%
21%
Overall Internet service5%
70%
62%
39%
24%
40%
71%
Satisfiied (Scale 5-7)
Neutral (Scale 4)

(570)
= The
figureunless
in parenthesis
represents
Copyright Base
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General Attitudes Towards ICT

Q64. For each of the following statements, please rate your agreement level from 1
to 7
Learning how to use all the features of my mobile phone is important to my life now and in the future. 9% 13%
78%
Learning how to use the Internet better is important to my life now and in the future. 7% 10%
83%
Having PC skills is critical to my life now and in the future.4% 15%
80%
Using on-line banking services is important to my life.

Purchasing goods on-line is important to my life.
32%
28%
40%
41%
29%
32%
Top Box (scale 5-7) : Agree

Middle Box (scale 4) : Neutral
Bottom Box (scale 1-3) : Disagree
Learning basic ICT skills is more prominent than using sophisticated services like purchasing online or online banking
Highest priority is given to learning how to use the Internet usage (83% agree), PC usage (83%) and mobile usage (78%).
=AllTotal
Sample
Copyright IDC. Reproduction is forbidden unlessBase
authorized.
rights reserved.
(n=750)
Awareness of e-Government Services

Q65. Are you aware of any government services available online? If yes, have you
used any for your non-work related matters in the past 12 months?
Not aware of any services provided online
Not aware of any services provided online
47%
Aware of them, and have used any online services more than 12 months ago
Aware of them, but have never used any online services
34%
16%
39%
Aware of them, but have not used any online services in the past 12 months
Aware of them and have used them in the past 12 months
Base : Total Sample (750)
2011
14%
Aware of them and have used them in the past 12 months
36%
14%
Base : Total Sample (750)
2012
Overall awareness of e-government services is significant (53%). But their actual usage is low (23%),
concentrated especially in Nyeri (23%)
Survey question response options were adjusted in Phase II to include Aware of them but have not
used any online services in the last 12 months
= The
figureunless
in parenthesis
represents
Copyright Base
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is forbidden
Satisfaction with e-Government Services

Q70. How would you rate your experience with the usage of e-government services?
Please rate your satisfaction for the following points using 10 point scale where
1= very dissatisfied and 10 = very satisfied.
Variety of e-services provided 7%
Easiness of using it
Quickness of processing the transaction
19%
69%
27%
54%
16%
Quality of the transaction in general3%
24%
63%
66%
Top Box (8-10): Satisfied
21%
31%
Middle Box (4-7): Neutral
Overall satisfaction with e-government services is not high (not exceeding 31%)
The majority of the users of such services were neutral in rating their experience while using such services
= Users
e-Government
Services
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is forbiddenof
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in Past 12 Months (n=70)
Other e-Government Services

Q71. Are there any other government services you would like to see available on
line?
Registration of National ID Cards.
12%
Online admission into Secondary / public universities.
9%
Appointment /job application/employment opportunities.
6%
Application/ issuance of Birth certificates.
6%
Voting online.
5%
Payment of Land Rates.
4%
Lists of corrupt High Ranked Government Officials.
4%
Application of passport/other travelling document.
2%
Online booking in government hospitals/health services appointment.
1%
Variety of government businesses.
1%
Application of CDF bursaries.
1%
Registration of new business online .
1%
Online checking of Motor Vehicles ownership.

Business purposes/International document to do business with other countries and also
between local businesses.
1%
None/Dont Know : 62%
+++Open ended question responses grouped according to similarity

= Users
e-Government
Services
Copyright IDC.Base
Reproduction
is forbiddenof
unless
in Past 12 Months (n=70)
1%
Barriers to ICT Usage

Q63. What are some of the reasons that may be limiting your use of ICT (computers
and Internet)?
High costs to connect to the Internet
38%
High costs of buying/renting computers
35%
High costs of maintenance and repairs for computers
33%
Risk of viruses is too high when using the Internet
21%
Lack of required skills to use computers/ internet
18%
Lack of trust for ICT (e.g. security/ privacy issues on the Internet)
18%
Computers/Internet not available at home
16%
There are no barriers at all
16%
Technology is too complicated
14%
Not secure to do business/ make transactions over the Internet
9%
Internet cafs are hard to reach or find

Computers/Internet not available at work
Computers/Internet not available at school/ university
Not enough websites / content in local language
7%
5%
4%
3%
Base : Total Sample, DK excluded (725)

Unavailability of computers accompanied with theirs high cost as well as the costs of internet connections are the main
barriers to the use of ICT
Benchmarking Kenya
34
Benchmarking
Internet user penetration

KPI
Kenya
YoY
RSA
YoY
Nigeria
YoY
Rwanda
YoY
Ukraine
YoY
Philipines
YoY
Egypt
YoY
Morocco
YoY
2010
2011
change
2010
2011
change
2010
2011
change
2010
2011
change
2010
2011
change
2010
2011
change
2010
2011
change
2010
2011
change
Total Internet user penetration

22.5%
25.9%
15.1%
14.0%
12.3%
-12.1%
28.3%
28.4%
0.2%
12.7%
13.0%
2.2%
33.3%
45.0%
35%
invalid data
invalid data
29.5%
26.7%
-9.4%
41.4%
49.0%
18.3%
35
Benchmarking
Extent of business internet use

KPI
Kenya
YoY
2010
2011
Extent of Business Internet Use - WEF Indicator

4.77
5.0
change
2010
2011
4.8%
5.14
5.3
change
2010
2011
3.1%
4.5
4.5
change
2010
2011
0.0%
1.75
4.9
change
2010
2011
180.0%
4.72
5.1
change
2010
2011
8%
4.5
5.6
change
2010
2011
24.4%
4.72
4.9
Morocco
change
2010
2011
3.8%
4.6
4.5
YoY
change
-2.2%
RSA
YoY
Nigeria
YoY
Rwanda
YoY
Ukraine
YoY
Philipines
YoY
Egypt
YoY
36
Benchmarking
Government ICT Use and Efficiency

KPI
Kenya
YoY
RSA
YoY
Nigeria
YoY
Rwanda
YoY
Ukraine
YoY
Philipines
YoY
Egypt
YoY
Morocco
YoY
2010
2011
change
2010
2011
change
2010
2011
change
2010
2011
change
2010
2011
change
2010
2011
change
2010
2011
change
2010
2011
change
ICT Use and Government Efficiency - WEF Indicator

4.35
4.4
1.1%
4.07
3.9
-4.2%
3.8
3.8
0.0%
no data
5.5
3.56
3.6
1%
3.6
3.7
2.8%
4.43
3.9
-12.0%
4.2
4.0
-4.8%
37
Benchmarking
Government Online service Index

KPI
Kenya
YoY
RSA
YoY
Nigeria
YoY
Rwanda
YoY
Ukraine
YoY
Philipines
YoY
Egypt
YoY
Morocco
YoY
2010
2011
change
2010
2011
change
2010
2011
change
2010
2011
change
2010
2011
change
2010
2011
change
2010
2011
change
2010
2011
change
Government Online Service Index - WEF Indicator

0.24
0.2
0.0%
0.31
0.3
0.0%
0.1
0.1
0.0%
0.17
0.2
0.0%
0.35
0.4
0%
0.39
0.4
0.0%
0.53
0.5
0.0%
0.24
0.2
0.0%
38
Benchmarking
Internet Users vs Connections as a % of population
In more developed
countries the total
number of connections
vis a vis the number of
users are evenly spread
In countries like Kenya,
Nigeria and Morocco,
there are lower numbers
of connections but
higher number of users
indicating most
connections are shared
connections and largely
comprise business
connections (including
publicly accessible
connections like cyber
cafes, education
institutions).
Internet Users vs Connections as a % of population

60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Kenya
RSA
Nigeria
Rwanda
Ukraine
Philipines
Egypt
Morocco

Internet subscribers percentage of total population
39
Benchmarking
Total Internet vs Household penetration

Kenya has a higher internet
penetration vis a vis South
Africa but mainly bolstered
by mobile internet
connections though with a
lower proportion of
households connected
owing to a declining fixed
network and poor
development of DSL based
services.
Kenya compares much
better than both Nigeria and
Rwanda on both counts
Egypt has a much higher
overall and household
internet penetration with a
huge gap of almost 25
percentage points at
household level.
Total Internet vs Household penetration

45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Kenya
RSA
Nigeria
Rwanda
Ukraine Philipines
Egypt
Proportion of households with internet access

40
Morocco
Benchmarking
Computer Penetration
Kenya has slightly
higher PC penetration
rates than Nigeria and
Rwanda but still very far
behind South Africa and
Morocco, mostly owing
to lower disposable
income than these
countries.
Population figures for
Nigeria (high) and
Phillipnes (low) help
skew penetration rates
either way as do GDP
per capita figures when
thinking of disposable
income and installed
base of computers in
households.
Computers per 100 inhabitants

9
8
7
6
5
4
3
2
1
0
Kenya
RSA
Nigeria
Rwanda
Ukraine
Philipines
Egypt
Morocco
41
Benchmarking
Household Internet Access vs Household PC Access

Household Internet Access vs PC
In terms of PC Access at the

household level, Kenya is
only better than Rwanda.
35.0%
It should be noted that

Nigeria as a manufacturer of
PCs (Zinox brand) that are
locally affordable, accounts
for much higher PC
penetration at household
levels but negligible
household internet
penetration given
infrastruicture issues
(subamrine cables arrived
way after they did in East
Africa)
25.0%
30.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Kenya
RSA
Nigeria
Rwanda Ukraine Philipines Egypt
Proportion of households with internet access

Proportion of households with a computer
42
Morocco
Benchmarking
Business Internet Usage

Business Internet Usage
Morocco
In terms of business
usage of the internet,
Kenya is nearly on par
with more developed
countries like Egypt and
Morocco and slightly
ahead of Nigeria
Egypt
Philipines
Ukraine
Rwanda
Nigeria
RSA
Kenya
0
Extent of Business Internet Use - WEF Indicator
43
Benchmarking
Broadband Access Tariffs

Broadband Access Tariffs
Despite additional
capacity, cost of
broadband is still a
factor for business vis a
vis other countries.
Nigeria has recently got
a lot of international
bandwidth but
constrained somewhat
by back bone, last mile
access and electricity
challenges.
Landlocked Rwanda
largely relies on
bandwidth from
operators in
neighbouring countries.
$120.00
$100.00
$80.00
$60.00
$40.00
$20.00
$0.00
Kenya
RSA
Nigeria
Rwanda
Ukraine Philipines
Egypt
Internet Access Tariff - Broadband
44
Morocco
fhook@idc.com
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Kenya ICT Board

Monitoring and Evaluation Survey Results

19th February 2013

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Kenya ICT Market Overview

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International Internet bandwidth, Mbps per 10,000

Number of Computers per 100 inhabitants

percentage of households with a personal computer

Total number of Internet Subscriptions

Total number of internet users

Volume of international traffic (Mbps)

Total number of main fixed lines (fixed lines plus

2011 Data Change

International Internet bandwidth, Mbps per 10,000

% of households with a personal computer

Total number of Internet Subscriptions

Total number of internet users

% of population with Internet Access

Internet subscribers as % of total population

Total number of main fixed lines (fixed lines plus fixed

Total number of mobile subscriptions

Total penetration of mobile services (per 100

Number of .Ke domain names

IT Spending per capita

++per user from 2011

Fixed broadband Internet access tariff ($ per month)

Dial up Internet tariff ($ per Month)

Number of BPO jobs

Number of BPO seats

Universities are connected to broadband services

Number of educational campuses connected to national

Number of universities connected to broadband

Number of networked PCs per 100 students

++per user from 2011

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Kenya ICT Ecosystem

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Kenya ICT Ecosystem

95% -100% software or

Not much value addition very few

Value addition a key revenue

Some value addition and smaller

Very little or no value addition.

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Kenya ICT Ecosystem

Kenya ICT Ecosystem

Less than 40% of the local companies have a

While Uganda is a smaller market than

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Kenya ICT Ecosystem

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Kenya ICT Ecosystem

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Kenya ICT Ecosystem

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Residents Survey Highlights

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Devices at home & Household

Traditional devices are more available at households than advanced ones

Residents Survey Highlights

. Do you have an Internet connection at home?