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GSMA Africa Unveils Key Reports to Propel Kenya’s Digital Economy and Mobile Connectivity

October 23, 2024
2 min read
Author: Akim Benamara

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The GSMA, in collaboration with mobile operators, the Ministry of Information, Communication, and the Digital Economy, and the Communications Authority of Kenya, has launched three pivotal reports aimed at accelerating the country’s digital transformation. The launch includes the Kenya Digital Economy Report , the Digital Africa Index (DAI) , and the Smartphone Affordability Report , which provides a detailed case study of Kenya’s progress.

Angela Wamola, GSMA’s Head of Sub-Saharan Africa, emphasized that the adoption of digital technologies in both public and private sectors has significantly contributed to economic growth. Wamola highlighted that Kenya is a regional leader in mobile connectivity and mobile financial services. The country’s mobile internet connectivity has seen remarkable improvement over the past decade, with 3G networks covering 99% of the population and 4G coverage reaching 98% in 2023. A significant number of 3G subscribers have already migrated to 4G.

However, despite this progress, a substantial challenge remains: a large portion of the population still does not use the internet, even though they are covered by mobile broadband networks. Over 65% of Kenyans are currently unconnected to mobile internet, with only 35% of the population being active mobile internet users.

Wamola pointed out that foreign companies, which play a crucial role in boosting local industrial capacity, are drawn to countries with robust digital infrastructure. She noted that Kenya, with its strong connectivity ecosystem, holds the potential to attract increased foreign direct investment (FDI) by pushing forward digital transformation in key sectors such as agriculture, transport, industry, and manufacturing.

The reports also identified four key policy recommendations to unlock the potential of the mobile sector for Kenya’s digitalization:

  • Reducing sector-specific taxes on the mobile industry.
  • Supporting device affordability by lowering or removing taxes on devices and SIM cards.
  • Eliminating or reducing excise duties on mobile money services.
  • Promoting a pro-investment, sustainable, and predictable regulatory environment.

These recommendations are expected to drive further growth and connectivity, enhancing Kenya’s role as a digital leader in the region.

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