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Increased investments push growth in ICT sector to catalyze Big 4 Agenda, report shows

Posted on: 24th September 2019

Increased investments are pushing the growth of the ICT sector, with the industry set to catalyze the realization of the Government’s Big 4 Agenda, the latest sector report by the Authority.

The report covering April-June 2019 shows investments in mobile sub-sector grew from KSh.41.5 billion in 2017 to KSh.57.5 billion in 2018. Subsequently, the service revenue from the mobile sub-sector grew by 9.4 percent to record KSh. 270.5 billion in 2018.

This positive outlook is further buttressed by the  Economic Survey Report 2019 indicating the value of the ICT Sector grew by 12.9 percent in 2018 to reach KSh.390.2 billion up from KSh.345.6 billion recorded in 2017.

Voice services continue to command the lion’s share of the mobile services at 39 percent followed by other services, which include mobile money services, interconnection and roaming at 33 percent while the  SMS revenue recorded the least share at 8 percent.

Safaricom PLC recorded the highest revenue share for all mobile services, whereas Finserve Ltd recorded the least revenue share in 2018.

In terms of employment in the mobile sub-sector , the number of people absorbed increased from 7,016 in June 2018 to 8,689 in June 2019 with the ratio of males to females standing at 3:2.

The report also shows the number of data/Internet subscriptions stood at 49.9 million with 99.9 percent being on mobile data. This has been attributed to favourable government policies and dynamic digital scene. ”For instance, the rapid growth in mobile and Internet networks has created opportunities for development and deployment of innovations and e-commerce,” the report states in part.

In mobile money transfer servies, 810.9 million transactions valued at KSh.2.1 trillion were recorded during the quarter. Similarly, a total of 591.1 million transactions valued at KSh.1.9 trillion were made through the mobile payment platforms (Paybill and Till Numbers) while  person-to-person transfers were valued at KSh.770.9 billion.

The number of .KE domains increased to  87,807 up from 83,915 domains reported as at the end of March 2019 with the .CO.KE sub-domain recording the highest number of users while MOBI.KE recorded the least users.

In the broadcating sector, there was a marginal increase in the number of Free-to-Air TV stations which grew by 6.3 percent to record 86 stations from 81 stations recorded in the previous period. However, digital TV subscriptions declined by 7.1 per cent to 5.4 million during the quarter under review.

”The wane in subscriptions for digital TV is attributed to the increased uptake of streaming services especially among younger consumers, as more homes get connected devices,” indicates the report. The number of radio stations remained unchanged at 173.

The report also shows that the number of cyber threats increased two fold to stand at 26.6 million compared to 11.3 million incidents in the previous quarter. The spike  is as a result of the global increase in malware including ransomware.

The continued uptake of e-commerce also saw a subsequent 22.2 percent increase in the numbe rof courier items sent during the period to 885,862 items.

You can read the full report here.

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