Kenya ICT Market Survey - Julisha II

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.
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 4
Market Overview Kenya ICT Market Key Indicators

Indicators Volume of international traffic (Mbps) International Internet bandwidth, Mbps per 10,000 population Number of Computers per 100 inhabitants percentage of households with a personal computer Total number of Internet Subscriptions Total number of internet users Total number of main fixed lines (fixed lines plus fixed wireless) Total number of mobile subscriptions Number of .Ke domain names
2010 20,209.56 4.2 2.4 6% 4,716,977.00 10,199,836.0 0 380,748.00 24,968,891.0 0 18,000.00
2011 52,938.00 7.7 2.7 8% 6,152,687.00 17,382,034.00 283,546.00 28,080,771.00 24,322.00
Change % 162% 83% 14% 27% 30% 70% -26% 12% 35%
5

2010 Data Connectivity development 1 Volume of international traffic (Mbps) 2 3 4 5 6 7 8 9 10 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 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 wireless) Total Fixed line penetration (per 100 inhabitants) 20,209.00 4.2 2.4 6.3% 4,716,977 10,199,836 0.26 11.5% 380,748 97.0% 2011 Data Change (%) 52,938.00 ++7.7 2.7 8.0% 6,152,687 17,382,034 0.36 14.8% 283,546 72.0% 162.0% 83.3% 13.9% 27.0% 30.4% 70.4% 40.2% 28.6% -25.5%
-25.8% 64.2% 18,000 $18.5 72.0% 24,322 $24.4 12.2% 35.1% 32.1%
11
12 13 14 15
Total number of mobile subscriptions

Total penetration of mobile services (per 100 inhabitants) Total teledensity Number of .Ke domain names IT Spending per capita
24,968,891
63.2%
28,080,771
71.3%
12.5%
12.8%
++per user from 2011


Broadband demand is not constrained by cost or access 22 Price of Internet Access for 512 Kbps 23 24 25 26 Fixed broadband Internet access tariff ($ per month) Dial up Internet tariff ($ per Month) Number of BPO jobs Number of BPO seats $22.00 $39.80 $29.5 12,500 5,000 $22.00 $37.90 $29.3 13,100 5,696 0.0% -4.8%
-0.7% 4.8% 13.9%
Universities are connected to broadband services 27 Number of educational institutions connected to national network 28 29 30 31 Number of educational campuses connected to national network Number of students connected to broadband Number of universities connected to broadband Number of networked PCs per 100 students
60 74 176,000 15 6
65 78 250,000 29 5
8.3%
5.4%
42.0%
93.3%
-16.7%
++per user from 2011

Highlights Kenya ICT Market Key Indicators

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 95% -100% software or hardware 0-5% services
70% hardware 20% services 10% software 75% hardware 15% services 10% software 90% hardware 5% services 5% software
REMARKS
Services revenue mainly from multinational companies and large accounts Not much value addition very few value added distributors in the local market.
Distributors
Tier 1 Systems Integrators Tier 2 Systems Integrators
Value addition a key revenue stream
Some value addition and smaller projects
Very little or no value addition.
Retail
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.
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 Copyright IDC. Reproduction is forbidden unless authorized. All = Total Sample (n=750) Base rights reserved.
Residents Survey Highlights Internet Usage at home

Q16. Do you have an Internet connection at home? Internet Home Penetration by Location
41% 59% Nairobi 50% 50% 49% 51% Mombasa 66% 34% 49% 51% Kisumu 32% 65% 68% 35% Eldoret Thika 36% Machakos 28% Kakamega 5% E Garissa 95% 64% 72% 67% 33%
Internet Home Penetration by SCL

Yes No 43% 42% 63% 85%
Base : Total Sample (750)
57% AB
Nakuru
58% C1
37% C2 Yes No
15% D
Internet usage increases by SCL levels. It is highest in Nairobi (59%) Internet usage increases by SCL levels. It is highest in Mombasa (37%)
20 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Base = The figure in parenthesis represents
the base of the respective category
Internet Usage at home

Type & Speed of Connection
Q18. What type of Internet connection do you have at home?
Mobile broadband / narrowband Connection /modem ADSL line (dedicated line for internet (broadband) Dial up connection (using fixed phone line connection) Other connections
4%
Q19. What is the speed of your main internet connection at home?
87%
Broadband delivering speed of 256 kbps to less than 1 Mbps
32% 27% 19% 16% 6%
Broadband delivering speeds from 1Mbps to less than 4Mbps

Broadband delivering speeds from 4Mbps to less than 8Mbps
1%
Broadband delivering speeds higher than 8Mbps

34%
Don't know
Base : Internet users (210)
Base : Internet users but NOT VIA DIAL-UP (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 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Internet Usage at home

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 We cant afford internet subscription I use internet in other places, and there is no need to have one at home There are no internet cables / infrastructure in our neighborhood I dont know how to use internet Internet connections are poor in terms of quality 35% 33% 23% 11% 3% 63%
Base : No Users of Internet (540)
Type of PC, Internet Device & Mobile Service Used

Q25. What kind of PC do you use?
Desktop Laptop Media Tablet 14% 78% 61%
Included media tablets in Phase II
Base : Users of PC (493) Q31. Which of the following devices have you used to access the Internet in the past 12 months? Desktop Laptop Other mobile phone / internet enabled mobile phones Smartphone Media Tablet 9% Base : Users of Mobile Phone (746) 37% 60% 57% 78%
Q60. Which kind of mobile service do you use?

Prepaid Postpaid Both 3% 1% 96%
Base : Users of Internet (570)
Purposes for Using PC
Q27. What is your primary purpose for using the PC?

2012 2011
Communication Entertainment Work Other Personal purposes Education 57% 54% 66%
83%
Personal usage Entertainment Communication Education Work 36% 45%
71% 66% 64%
28%
Base : Users of PC (519)
Base : Users of PC (493)
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.
Purposes for Using the Mobile Phone
Q59. Which of the following services do you actively use on your mobile device?
2012 2011
SMS Voice services Social media Web Browsing Access to Email Entertainment Chatting (IM) PIM (personal information MMS 18%
98% 97%
Voice services SMS Access to social media websites Web Browsing Entertainment Access to Email PIM Chatting Sending MMS 15% 45% 42% 37% 35% 31% 24%
97% 96%
65%
57% 52%
50%
41% 35%
Base : Users of Mobile Phone (721) Calling and texting share respondents' main usage of the mobile (around 97-98%)
Base : Users of Mobile Phone (746)
The usage of internet enabled services and PIM mainly attracts the young category (15-34 yrs). Their usage decreases by age
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 Payments (utility & mobile bills etc) through Mobile Money Buying of product through Mobile (Mobile Money transfer) Selling of product through Mobile (Mobile Money transfer) Payments of School fees through money mobile transfer Banking (online Banking transaction) Payments (utility & mobile bills etc) through Internet Buying of product and services through internet 7% 6% 5% 3% 23% 36% 34% 55% 96%
Selling of product and services through internet
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%)
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 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, 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%
Base : Users of Internet (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 Value for money spent on your Internet service Reliability of your Internet service Speed of your Internet service Customer support after sales Overall Internet service
11% 15% 12% 18% 21% 5%
20% 24% 18% 20% 39% 24%
69% 61% 70% 62% 40% 71% Neutral (Scale 4) Satisfiied (Scale 5-7)
Dissatisfied (Scale 1-3)
Base : Users of Internet (570)
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Base = The figure in parenthesis represents
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. Learning how to use the Internet better is important to my life now and in the future.
9%
13%
78% 83% 80% 28% 29% Bottom Box (scale 1-3) : Disagree Middle Box (scale 4) : Neutral Top Box (scale 5-7) : Agree 41% 32%
7% 10% 15% 32% 40%
Having PC skills is critical to my life now and in the future. 4% Using on-line banking services is important to my life. Purchasing goods on-line is important to my life.
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%).
Copyright IDC. Reproduction is forbidden unless authorized. All= Total Sample Base 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
47%
Not aware of any services provided online Aware of them, and have used any online services more than 12 months ago Aware of them, but have not used any online services in the past 12 months 16%
34%
Aware of them, but have never used any online services
39%
36%
Aware of them and have used them in the past 12 months
14%
Aware of them and have used them in the past 12 months
14%
2011
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
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Base = The figure in parenthesis represents
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 Easiness of using it Quickness of processing the transaction
7% 19% 16% 66% Bottom Box (1-3) : Dissatisfied 27%
69% 54% 63%
24%
21% 31%
Quality of the transaction in general 3%
Middle Box (4-7): Neutral
Top Box (8-10): Satisfied
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
Copyright IDC. Reproduction is Base = Usersauthorized. All rights reserved. forbidden unless of e-Government Services
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. Online admission into Secondary / public universities. Appointment /job application/employment opportunities. Application/ issuance of Birth certificates. Voting online. Payment of Land Rates. Lists of corrupt High Ranked Government Officials. Application of passport/other travelling document. Online booking in government hospitals/health services appointment. Variety of government businesses. Application of CDF bursaries. Registration of new business online . Online checking of Motor Vehicles ownership. Business purposes/International document to do business with other countries and also between local businesses. 12% 9% 6% 6% 5% 4% 4% 2% 1% 1% 1% 1% 1% 1%
None/Dont Know : 62%
+++Open ended question responses grouped according to similarity

Copyright IDC. Reproduction is Base = Usersauthorized. All rights reserved. forbidden unless of e-Government Services
in Past 12 Months (n=70)
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 High costs of buying/renting computers High costs of maintenance and repairs for computers Risk of viruses is too high when using the Internet Lack of required skills to use computers/ internet Lack of trust for ICT (e.g. security/ privacy issues on the Computers/Internet not available at home There are no barriers at all 21% 18% 18% 16% 16% 14% 9% 7% 5% 4% 3% 38% 35%
33%
Technology is too complicated

Not secure to do business/ make transactions over the 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
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 RSA YoY Nigeria YoY Rwanda YoY Ukraine 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
Extent of Business Internet Use - WEF Indicator 4.77 5.0

4.8% 5.14 5.3 3.1% 4.5 4.5 0.0% 1.75 4.9 180.0% 4.72 5.1 8% 4.5 5.6 24.4% 4.72 4.9 3.8% 4.6 4.5 -2.2%
36
Philipines
YoY Egypt YoY Morocco YoY
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 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
Philipines YoY
Egypt YoY
Morocco YoY
Benchmarking
Internet Users vs Connections as a % of population
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).
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 Total Internet user penetration
39
Benchmarking
Total Internet vs Household penetration
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.
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 Morocco Proportion of households with internet access Total Internet user penetration
40
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. 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)
35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
Proportion of households with internet access Proportion of households with a computer
42
Benchmarking
Business Internet Usage
Business Internet Usage
Morocco Egypt Philipines Ukraine Rwanda Nigeria RSA Kenya 0 1 2 3 4 5 6
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
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 Morocco
Internet Access Tariff - Broadband
44
fhook@idc.com

Kenya ICT Market Survey - Julisha II

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Kenya ICT Market Survey - Julisha II

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Kenya ICT Board Monitoring and Evaluation Survey Results (Phase II) Francis Hook Regional Manager IDC

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Kenya ICT Market Overview

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Market Overview Kenya ICT Market Key Indicators

2010 20,209.56 4.2 2.4 6% 4,716,977.00 10,199,836.0 0 380,748.00 24,968,891.0 0 18,000.00

2011 52,938.00 7.7 2.7 8% 6,152,687.00 17,382,034.00 283,546.00 28,080,771.00 24,322.00

Market Overview Kenya ICT Market Key Indicators

Total number of mobile subscriptions

++per user from 2011

Market Overview Kenya ICT Market Key Indicators

-0.7% 4.8% 13.9%

++per user from 2011

Highlights Kenya ICT Market Key Indicators

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Market Overview ICT Spending by Technology Areas

Market Overview Spending by Vertical Sectors

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Kenya ICT Ecosystem

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Kenya ICT Ecosystem Structure Systems Integrators

Tier 1 Systems Integrators Tier 2 Systems Integrators

Value addition a key revenue stream

Some value addition and smaller projects

Very little or no value addition.

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Kenya ICT Ecosystem Highlights 1/2

Kenya ICT Ecosystem National and Regional Presence

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Kenya ICT Ecosystem Kenya as a regional Hub

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Kenya ICT Ecosystem Challenges faced

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Kenya ICT Ecosystem System Integrators Market Outlook

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Residents Survey Highlights

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Devices at home & Household Composition

Residents Survey Highlights Internet Usage at home

Internet Home Penetration by SCL

Base : Total Sample (750)

the base of the respective category

Internet Usage 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

32% 27% 19% 16% 6%

Broadband delivering speeds from 1Mbps to less than 4Mbps

Broadband delivering speeds higher than 8Mbps

Base : Internet users (210)

Base : Internet users but NOT VIA DIAL-UP (210)

21 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

Internet Usage at home

Base : No Users of Internet (540)

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Type of PC, Internet Device & Mobile Service Used

Included media tablets in Phase II

Q60. Which kind of mobile service do you use?

Base : Users of Internet (570)

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Purposes for Using PC

Q27. What is your primary purpose for using the PC?

Personal usage Entertainment Communication Education Work 36% 45%

71% 66% 64%