A new report from a global association of mobile operators, GSMA, reveals that Kenya’s digital economy is expected to contribute $4.4 billion (Sh662 billion) to the country’s Gross Domestic Product (GDP) within the next four years.
Released on Tuesday, the report highlights that Kenya’s digital transformation, driven by strategic policy changes, will accelerate growth in key sectors such as agriculture, manufacturing, transport, and trade.
In addition to economic growth, the report anticipates that the digital sector will generate 300,000 new jobs and boost tax revenue by $1 billion (Sh150 billion) by 2028.
The Kenya Kwanza government has identified the digital economy as a key pillar in its plan to enhance national income and provide employment opportunities.
According to the GSMA, adopting digital technologies across critical sectors is key to unlocking Kenya’s economic potential.
The report provides recommendations on how policy reforms can further maximize the benefits of digitalization.
The report underscores the importance of digitalization in diversifying the economy, improving productivity, and creating quality jobs, particularly for youth and rural populations.
By fostering this sector, Kenya is looking to drive economic growth and socio-economic development. “The expansion of digital tools across agriculture, manufacturing, transport, and trade is projected to significantly contribute to GDP, create numerous jobs, and increase tax revenues by 2028,” the report states.
In 2023, Kenya’s mobile sector contributed $8 billion (Sh1.2 trillion) to GDP and $1.4 billion (Sh212 billion) in tax revenue, but GSMA highlights that challenges remain.
Addressing these challenges will require comprehensive policies to stimulate demand, reduce service costs, and promote investment in mobile money, telecommunications infrastructure, and digital services.
Although 99% of Kenya’s population has access to 3G, and 98% is covered by 4G networks, only 33.5% of Kenyans currently use mobile internet services, revealing a significant gap in usage.
The report predicts this gap will shrink to 46% by 2028, bringing an additional 1.5 million people online and boosting the adoption of mobile money services.