Mobile Consumer Survey

Report 2020 - Kenya Focus

DECEMBER 2021
 About the survey

Deloitte’s Global Mobile Consumer Survey covers 6 continents, 35 countries, and more than 54,000 respondents.
The insights in this report are extracted and analyzed from data gathered from approximately 1,000 survey
respondents within Kenya.
Fielded by an independent research firm, the survey provides insight into how consumers are interacting with
mobile technologies and services, attitudes and behaviours towards the products, advertising, and social networks,
and what their preferences might be in the future. In addition to exploring the results and key insights, the survey is
also designed to highlight differences among consumers across generational divides—capturing findings from three
distinct age groups, ranging from ages 16 to 45. To yield an insightful trend analysis, the report contains 3-year
comparative data from 2015 to 2018, which is linked to the Deloitte 2018 Global Mobile Consumer Survey.

Survey Population Age Range Gender Location

1,000 16-45 50% 50% 75% 25%

Representative of the
population who owns an
Female Male Urban Rural
Internet-connected mobile
device

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 2

 Key takeaways

1) New year, new phone; keeping up with the models – Most mobile users upgrade their phones on a yearly basis. This is mainly due to the quest for improvements on the
design of the phones, phones’ storage and processing capabilities, improvements on the security features and as a social symbol. The booming smartphone market presents
a clear opportunity for businesses that can devise even more ways to extend smartphones’ capabilities.

2) Smartphones remain firm favourite – Almost all (97%) of the survey respondents use smartphones every day with most activities requiring data connectivity. This shows
that a smartphone, with the help of lower priced options, is fast becoming a basic requirement for consumers in the digital era. There is notable room for growth or
adoption of other smart devices, applications, and platforms in the Kenyan market. Localization of such solutions will increase the appeal and applicability in the market.

3. The 5G fanfare; need to educate users – There is a positive outlook on the adoption of 5G among Kenyan users given that 66% of the survey respondents indicated that they
would switch to 5G as soon as it is available. 28% of the survey respondents believe that there are health risks associated with 5G. However, Kenya is not isolated in this
perception given that in more developed countries such as Austria, Belgium, Italy, and Poland, more than 10% of the population surveyed believe there is a health risk
associated with 5G. There is probably merit in educating users and providing comprehensive information about how 5G and other wireless technologies work in order to put
their minds at rest.

4. In-app ads; preference of ad-free video streaming – Many users are not interested in pop-up ads while video streaming. Based on the survey, 39% of respondents would
rather pay the full subscription fee and not have to watch ads while 11% would not be interested in ads at all. However, with a reduction of subscription fees, some users
would be receptive to tailored ads.

5. Is private data really PRIVATE? – Consumers are aware that they are providing personal information to online companies, and they are taking steps to ensure their data is
secure when they are online. Companies should examine how and what data is being collected, invest in additional technology controls to ensure that data is well protected
to enhance compliance and mitigate data breach risk.

6. Let’s do socials – With this growing adoption of social media, increasingly more Kenyans are utilizing social platforms to volunteer feedback about their experiences with
service providers. Organizations would benefit from investing on social media analytics and customer care solutions including training their customer service team to
efficiently manage opportunities and risk arising from the social media platforms.

7. Home is the new office – The pandemic has changed the idea of work. Businesses are adopting different frameworks aimed at aligning with the current social interaction
requirements.

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 3

M o b i l e C o n s u m e r Tr e n d s
Devices

Connectivity

Apps/Services

Subscription Based Services

Payments and e -commerce

Privacy

COVID-19 Sentiment

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 4

 Devices

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 5

 New year, new phone: keeping up with the models
Figure 1: Year of purchase of mobile phones Figure 2: Condition of current phone upon purchase
When did you buy or receive your current mobile phone? When you got your current phone, was it new or used?
37% 79% 79%
2020
2018
28%

16%
19% 20%
7% 7% 2% 1%
4%
2%
New Used / Refurbished Don’t know
In 2020 In 2019 In 2018 In 2017 In 2016 Before 2015 I don't know

What the data says What the data means

About 37% of consumers surveyed upgraded their phone in 2020. Majority of the mobile
phone users purchased new phones when upgrading. Various factors motivate users to
upgrade their phones every year, including features such as improvements on the design of
the phones, phones’ storage and processing capabilities, as a social symbol, improvements
on the security features1, and enhancements of user control over phone tracking 2. The
phone upgrade can also be attributed to market promotions. For instance, Safaricom
partnered with Google to introduce a smartphone device financing plan dubbed Lipa Mdogo
Mdogo. This makes it possible for customers to purchase a smartphone via manageable
daily instalments of Kshs 203.
The global trend is to make smartphones sustainable to reduce their environmental impact .
According to the Deloitte Global 2022 TMT predictions4, several trends point to the
likelihood that smartphones lifetime will become longer in the long run. For instance,
flagship model smartphones are more resistant to water damage and the software support
for smartphones is being offered for a longer period.
The booming smartphone market presents a clear opportunity for businesses that can devise even
more ways to extend smartphones’ capabilities. We do not expect that opportunity to fade anytime
soon. Players in the e-commerce market will have to keep up with the changes by upgrading their
applications and websites to match the requirements on the new phones. Phone manufactures can
also explore the Kenyan market by availing the quality smartphones in the market.
There is a relatively small market for second-hand mobile phones in Kenya, with only 20% of the
consumers purchasing used/ refurbished phones. The use of second-hand phones is mainly
prevalent with younger users between the age of 16-24 years which likely corresponds to
affordability and indicates trends of handing down phones to younger family members after the
purchase of, or upgrade to a new device.
Overall, the global trends per the Deloitte Global TMT 2022 predictions show that the average
ownership time for smartphones has steadily been lengthening in developed markets. Longer
smartphone lifetime could eventually reshape how the smartphone industry generates revenues
and profits in future. More opportunities lie not in the smartphone market itself, but in the vast and
growing markets the smartphone has created.

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 6

 Instore phone vis-a-vis online purchases
Figure 3: Phone purchase, overall Figure 5: For instore purchases
How did you get your current phone? Where did you purchase your current phone from?
54% 55% 2020 2018
42%
2020 2018
27%
24%
21% 9% 9% 8%
17% 3%
13%
5% 4% 3% 1% 1% Mobile Mobile Retail Manufacturer Electronic Second-hand
phone shop operator store shop retailer shop
In store Family/ Online Sales rep/ Other Employer
Friend over the phone What the data says
More than half of all mobile phones were purchased in stores. Consumers seem to appreciate the in-
Figure 4: For online purchases store person-to-person interaction, as well as the ability to touch and feel the product before making a
Which platform did you purchase your current phone from? purchase. The continued purchase of mobile devices in-store could also be attributed to quality
concerns, difficulty in settling disputes and delivery risks5.
74%
68% Mobile phone shops remain the leading go-to place for consumers who purchase their phones from a
2020
store. This is mainly due to the variety of phones, price competition and favorable payment options
offered by the mobile operators.
2018
E-commerce websites remain as the main go-to place for online phone purchase though they are
losing traction to mobile phone online shops and manufacturers who increased their online sales. The
sector, which was previously nascent, has received a boost with more firms and start-ups pushing their
services online, which is probably also as a result of the COVID-19 pandemic.

10% 9% What it means

5% 7% 7%
3% Time is apt for mobile operators, phone stores, and manufacturers to explore the e-commerce space.
To increase the online purchases, industry players should put in place measures aimed at addressing
E-commerce Mobile Manufacturer Mobile
the perceived risks such as quality concerns, difficulty in settling disputes, and delivery risks.
website phone operator
(online) shop This can be achieved by having a customer centric online store that delivers quality phones and
promptly addresses customer concerns. Consumers expect a seamless online experience. For
operators seeking to boost their online sales, creating a customer-centric approach should be at the
heart of their business strategy.
© 2021 Deloitte & Touche LLP Mobile Consumer Trends 7
 The ubiquitous smartphone
What the data says
Figure 6: Device penetration, overall, year on year comparison
Smartphones are the most common smart devices in use today, followed by laptops and
Which of the following devices do you own or have ready access to (at work or home)?
desktops. According to the survey, though consumers are taking up the use of smart watches
and fitness bands, accessibility and use of these devices remains comparatively low.
100% 97% 2020 2018
Although laptops, desktops and tablets remain popular, their penetration is below that of
smartphones with 97% of the respondents indicating that they use smartphones every day. This
shows that a smartphone, with the help of lower priced options, is fast becoming a basic
requirement for consumers in the digital era.
49%
42%
Mobile penetration in Kenya grew by 11% between January 2020 and January 2021 6. The need
26% to access the internet over mobile phones has significantly increased the demand for
22% 21% 22%
smartphones in Kenya as well.
11% 10% 10%
0% 5% 0% What the data means
The growth in mobile internet use in Kenya correlates with a rise in smartphone usage, driven by
Smartphone Laptop Desktop Tablet Feature Smart Fitness
computer or basic… watch band the emergence of cheaper smartphones and a relatively young population actively looking for
information and connection online. Every successful device cultivates—and in turn relies upon—an
Figure 7: Device daily usage associated ecosystem. The better the device, the more vibrant the ecosystem. The number and
Which of the following devices do you use daily? variety of smartphone-linked accessories, devices, content, and services provide great
opportunities for the Kenyan market.
97%

Developers should also explore the opportunity of developing other smart devices that address
problems in the local market. For instance, the pandemic highlighted the value of smartwatches to
monitor health. In addition, technologies such as computer vision, machine learning, and
34% wearables sensors are transforming how athletes train. Consumers are continually realizing the
applicability and potential of smart devices, which is in turn pushing the demand of the devices.
13% 10% 6% 5% 3%
Consumer devices are not the only areas of growth. Every mechanical product in the industry is
becoming increasing digital and every sector is becoming ever more reliant on digitalization. There
Smartphone Laptop Desktop Tablet Feature Smart Fitness band
is significant room for growth or adoption of smart devices, applications, and platforms in the
computer or basic watch
phone
Kenyan market. Localization of such solutions will increase the appeal and applicability in the
market.

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 8

 Connectivity

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 9

 5G: A network of networks
Figure 8: Top reasons for choosing and changing mobile operators
Top reasons for changing your operator in future
Top reasons for choosing your operator 2020

37%
37%

35%
45%

2020

31%
2015

30%

30%
41%

41%

29%

29%
40%

28%
36%

35%
2015

30%

21%
25%

17%
8%

3%
0%

0%

0%
Quality of customer
Reliability, coverage and

network for voice calls and

availability/reliability

availability/reliability
The reach of its mobile

Reliability and coverage of

availability/reliability
availability/reliability

voice and SMS plan

Quality of customer
The price/offer for

and speeds of network

The price/offer for

speeds of network for

Reliability, coverage
4G/LTE network

4G/LTE network
internet plans
money network

5G network

5G network
service

for internet

service
internet

SMS

Compared to 2018/2019, the reasons for choosing or changing an operator have remained
static. We have analyzed the trends using 2015 as the base year to provide further
insights.
What the data says
For the first time, 3% of the respondents consider availability and reliability of 5G before
choosing their mobile operators. The other criteria include reliability, coverage, and speed
of the network for internet purposes (45%), 4G/LTE network availability (41%), and the
reach of its mobile money network (36%).
30% of respondents would easily change their current operator if the operator’s 5G network
is either not available or reliable. Other determinants for changing the current operator
include the price of internet plans (37%), reliability, coverage, and speed of the network for
internet purposes (31%).
© 2021 Deloitte & Touche LLP
What it means
The quest for network reliability is much of a concern to customers, as it is for both operators and
regulators. In 2018, the Communications Authority of Kenya (“CA”) fined three mobile operators
7
Ksh.311 million for failing to meet the quality of service (QoS) . In September 2020, the CA released
for public commentary the Draft Consumer Protection Guidelines which, inter alia, may compel an
operator to compensate its customers for network outages.
The onus is on the operators to ensure that their network’s reliability, coverage, and internet speed
is optimal as this continues to be a major determinant of customer attraction and retention. With
many professionals working from home as a result of the COVID-19 pandemic, the value they get
from their operators (e.g., speed, reliability, and availability) are a dealbreaker.
Looking into the future, the price of internet plans is equally a concern among users, especially with
increased uptake of social media, streaming services, and working from home. It will be interesting
to watch how consumers react to the recent increase in price on internet services due to the
increase in Excise Duty.
Mobile Consumer Trends 10
.
 5G: Misinformation, disinformation or genuine concern?
Figure 9: Switching to a 5G network What the data says
When would you switch to a 5G network? 5G network was launched in Kenya on a trial basis in select counties during the first quarter of
66% 2021 making Kenya the second country after South Africa to have 5G. 5G mobile connectivity is
already attracting early adopters and those who have purchased 5G compatible smartphones. As
at the time of the survey, only 1% of the respondents were using 5G. This is a result of the limited
coverage of the 5G network in the country, which is only available in Nairobi, Kisumu, Kisii, and
Kakamega.

13% However, concerns have been raised globally on the supposed health hazards associated with 5G.
11%
4% The concerns mainly relate to radiation associated with the technology with many perceiving that
1%
it causes cancer and weakens the immune system thus enabling the spread of COVID-19. These
concerns seem to have encroached into the Kenyan market, as 28% of the survey respondents
As soon as it is If I start hearing Eventually If it was a standard I already use 5G
available good things about it offering and there believe that there are health risks associated with 5G. However, Kenya is not isolated in this
was no alternative perception given that in more developed countries such as Austria, Belgium, Italy and Poland,
8
more than 10% of the population surveyed believe there is a health risk associated with 5G.
Figure 10 : The belief of health risks associated with 5G
Agreement with the statement “I believe there are health risks associated with 5G” What it means
In an era of ubiquitous connected devices and high-definition streaming video, everyone wants
28% 28% more bandwidth—immediately. 5G would offer the solution as it is meant to deliver higher multi-
GBPS (“Giga Bites Per Second”) peak data speeds, ultra-low latency, more reliability, massive
23% network capacity, increased availability, and a more uniform user experience to more users.
20% The most noticeable benefits of 5G to the users will be faster and sustainable speeds. Based on
the Deloitte Global TMT 2022 predictions, the picture for 5G looks positive for operators as well.
Many operators in North America, Europe, and Japan have evaluated the cost and released
reports showing that at capex intensity for 5G will be more or less flat to their 4G spending.
Overall, there is a positive outlook on the adoption of 5G among Kenyan users given that 66% of
the survey respondents indicated that they would switch to 5G as soon as it is available, despite
the 28% citing health risk concerns. There is probably merit in educating users and providing
comprehensive information about how 5G and other wireless technologies work in order to put
their minds at rest.
Neither agree nor Agree Don’t know Disagree
disagree

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 11

 Technical glitches as a driver for user-operator interactions
Figure 11 : Visiting operator stores vs using operator’s apps
Reasons for interacting with operators
Reasons for using operator's mobile app Reasons for visiting operator's store Reasons for calling mobile operator

51%

32%
30% 29%
25% 24%
22% 22% 20%
19%
17%
15%
11% 11% 11% 11% 11%
8% 9% 7%
5%

To obtain help or advice with To top-up data/airtime To check the balance To get information about new To pay a bill/top up my phone To get information about To query/check my bill
technical issues mobile phones contract/tariffs

What the data says What it means

Physical visits to operator stores is the lowest mode of interaction between users and
operators, with 22% of the respondents citing that they have not been in a store in the past
2 years. The main reason why customers visit operators’ stores, use an operator’s app, or
call a mobile operator is to obtain help or advice with regards to technical issues.
Surprisingly, activities which may appear as “basic” such as airtime top up and checking
balances are still issues that users grapple with.
Considering that the survey was run in 2020, the COVID-19 crisis generally accelerated the
adoption of technology and use of social media to interact with service provides. Mobile
operators ought to develop self-service, easy to use options for customers to manage basic
requests. Such self-service tools may include conversational Artificial Intelligent bots to
replace static chat bots and help address basic technical glitches that customers face. This
would free time for customer service teams to respond to complex technical matters and
focus on improving the overall customer experience.

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 12

 Apps/Services

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 13

 Overusing the indispensable smartphone; the new addiction or the fear of missing out (FOMO)?

Figure 12: Do you think you overuse your smartphone? Figure 14: Managing smartphone use

78%
90%
77%
I turn data connectivity off 44%
80%
70% I turn notifications off 29%
60% I put on “do not disturb” or “airplane mode” 21%
50% I turn the sound off 20%
2020
40% I turn it off / put it down or away 19%
2018

19%
30%

17%
I use apps to limit my usage 14%
20%
I do not try to manage my smartphone usage

4%
4%
10% 13%
0% I delete apps which I use too much 13%
Yes No Don’t know I use screen time trackers 12%
Other 3%
Figure 13: Usefulness of screen tracker app in managing I give my smartphone to someone else 3%
smartphone usage Don’t know 1%
57% What the data says.
78% of respondents admit to excess smartphone use. Almost all (97%) use smartphones every day
with most activities requiring data connectivity. The most prevalent methods of managing
38% smartphone usage are turning off data connectivity (44%), turning off notifications (29%), and
putting on “Do not Disturb” (21%). The use of screen tracker apps is seen as useful in varying degrees
with 12% finding them very useful.
What it means.
In general, smartphones have become more integral to modern lifestyles and a great deal of
research has focused on how, when, and why people use them. Earlier surveys reveal that most
3% people reach for their phones within half an hour of waking up. And yes, while 78% percent of our
respondents say they overuse their phones, only 12% percent reported using, for instance, screen
Very useful Somewhat useful Not very useful time trackers. This is despite the growing range of tools for managing excessive smartphone use.
Overall, users do not seem worried about controlling usage.
© 2021 Deloitte & Touche LLP Mobile Consumer Trends 14
 The games console

Figure 15: When do you play games? What the data says
For adults with smartphones, gaming comes third in activities they like to do after watching short
70% videos and live streams and watching videos shared in instant messaging platforms. When asked
when they play games, “when relaxing at home’’ was by far the most common response (70%),
followed by “around bedtime’’ 41%. Notably, 62% of respondents have never spent money on in-
41% app purchases mobile games.
31% What the data means
25% 9
19% Deloitte Global TMT 2022 predictions show that the gaming console market will generate USD 81
15% 13% billion in 2022, up 10% from 2021. Beyond 2022, console software sales are expected to continue
growing, reaching close to USD 70 billion by 2025. Over this period, digital game purchases,
including downloads, subscriptions, game passes, and in-app payments, are expected to rise as a
When relaxing at home While waiting While watching TV While at school / work share of sales from 65% in 2022 to 84% in 2025.
Diverse innovations are bolstering the gaming ecosystem. These innovations are transforming the
Figure 16: How much, in a month, do you spend on in-app game gaming world from one based on final products generating one-off sales to a perpetual and evolving
purchases? entertainment service that encourages daily, often multiplayer gameplay, generating a steady
62% stream of revenue. In-game advertising is also expected to grow globally, especially with increased
partnerships between advertisers and video game companies.
The pandemic accelerated adoption and engagement with gaming. During the pandemic, parents
spent more time gaming with their kids—a social activity that may well endure. As COVID-19
recedes, out-of-home activities will likely compete for entertainment time, but gaming has held
27%
strong even as economies reopen.
The ability to deliver compelling and highly social game experiences, coupled with business models
8% that allow for recurring revenue is a key differentiator in the game console market. For Kenya, the
2% 1% 1% increase in smartphones presents considerable opportunities for growth in the gaming ecosystem.

I have never Don't know USD 1-10 USD 11-20 USD 21-30 USD 31-40
made an in-app
purchase

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 15

 Subscription Based Services

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 16

 Binge watching (and listening), even on the go
Figure 17: Which subscriptions do you have on your smartphone? What the data says

42%
Video streaming, music, and newspapers are the top subscriptions possessed by
smartphone owners in Kenya. Daily Nation leads the pack of Kenya newspapers given 16%
of respondents indicated they have a subscription to the paper compared to total
subscriptions to other local newspapers.
31%
12% of respondents indicated that they have a subscription to a cloud storage platform.
This is not surprising given that with increase smartphone local storage capacities, many
users are compelled to purchase additional cloud storage to back up their data. More so,
19 the increase in the quality of photos means that such photos take additional space and
16 16 hence users may require additional cloud storage such as Google Photos, Dropbox, iCloud
12% among others.
10 9% 10
Watching and streaming remains a key subscription for Kenyans. Statista.com postulates
that Netflix has 29,500 users in Kenya. With the advent of the pandemic, this number most
likely increased seeing that globally, Netflix added 36 million users.
What it means

Spotify

Music
Netflix

storage
Google

ShowMax

newspape

Apple
Music

Nation

Cloud
Daily

Local

Digitalization may have crowded out selling and distribution of print copies. This has equally
rs

been exacerbated by the COVID-19 pandemic. However, it is not all gloomy as newspapers
have the digital platform where they offer subscription-based newspapers either through
websites or apps. This is a trend witnessed with some leading newspapers in Kenya in the
recent past such as the Daily Nation and the Standard Media Group.
One of the key drivers to subscriptions is price. With the introduction of Digital Service Tax

29,500 in Kenya, some of these service providers have had to increase their price. An interesting
trend to watch in 2022 is how such price surges will impact the number of subscribers.
In addition, with Spotify launched in Kenya in the beginning of 2021 and Netflix set to
launch a cheaper mobile version, it will be interesting to see how these statistics change in
Number of Netflix users in 2022 and beyond.
Kenya

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 17

 In-app ads? No, I’d rather pay the price; the preference of ad-free video streaming
Figure 18: Sentiment toward ad-free video streaming services What the data says
Imagine that a video streaming provider (e.g. Netflix, Disney+, etc.) was to offer a reduced
A large number of users would not be interested in pop-up ads while video streaming.
subscription fee at half the price, but you would have to watch ads, similar to the ones on
Based on our survey, 39% of respondents would rather pay the full subscription fee and
TV, which option, if any, would you prefer? I would prefer to pay….
not have to watch ads while 11% would not be interested in ads at all. However, with a
reduction of subscription fees, some users would be receptive to tailored ads.
10
Statista.com estimates that as of 2019 Q4 , there were 764 million people who used ad
39%
blocking software to ensure their browsing and streaming is not impacted by ads.
What it means
With the increase in digital advertising, pop-up ads are becoming more intrusive and
27%
interruptive to user experiences especially in browsing and video streaming for free. There
are also data privacy concerns around pop-up ads where users believe that websites trade
17% their data. Users are opting to use pop-up and ad blockers and paying for subscription-
based services. For instance, Google offers an option to its users to allow or block pop-ups.
11% The simultaneous increase in video advertising market and smartphone usage has created
new demands and opportunities for advertisers. However, an effective advertising
campaign must be backed by the willingness of the ad-viewer to view the ad. Given that
most users seem to prefer ad-free videos, advertisers ought to reconsider the advertising
models. Given that digital marketing is the new frontier, advertisers may explore
…the full subscription …half the subscription …half the subscription I would not be additional insights to capture the attention of the ad-viewers such as creating more
fee and not have to fee and have to watch fee and have to watch interested at all engaging videos, effective timing on when to display the advertisement, and making ad
watch adverts adverts but only if they adverts but don’t mind if videos shorter and appealing to the viewer.
were tailored to me they are tailored to me
or not

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 18

 Payments and e -commerce

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 19

 Need for integration of cashless payment options
Though there is an availability of other cashless payment options, mobile operators are still popular when it comes to contactless payment options. Per
the survey, majority of the respondents (81% in 2020 and 93% in 2018) had used the mobile operator application or service to make a cashless
payment. This points to a need for increased integration of the other cashless payment options with the various online businesses in the country.
Figure 19: Use of mobile payment solutions while in a store
Which of the following in-store mobile payment solutions have you used? What the data says
Cashless payments have become an integral part of businesses in Kenya. The leading cashless
payment solution in 2020 was through a mobile operator application/service, followed by the
PayPal service and Android pay. Businesses in the country have integrated mobile operator
Mobile operator 81%
93% payment solutions into their payment processes through establishment of a paybill as well as buy
app/service
goods and services options. In addition, the ease of use of these payment solutions has
PayPal app contributed to the increased use in the country.
51%
(Scan and pay) 0% The use of mobile operator payment solutions decreased by 12% in 2020 compared to 2018. The
decrease corresponded to an increased use of other services such as the PayPal service, Android
Android Pay/ 30% pay, Apple pay, Samsung pay, and payment by SMS, which were hardly in use in 2018. Businesses
Google Pay 0%
in the country are continually diversifying and integrating a wider scope of payment solutions.

Pay by SMS 19% What it means

0% As more businesses in the country switch to online based platforms, the demand for cashless
payments has increased. Online businesses have had to adopt a wide range of cashless payment
Bank contactless 13% options to meet customer demand. E-commerce businesses that integrate cashless and online
payments app 23% 11
payment solutions are bound to benefit through customer loyalty and increased sales due to
the convenience and trust associated with these solutions.
11% 2020 2018
Apple Pay 0% At the same time, players in the cashless payment solution should consider integration, which
would further enhance and ease money transfer. For instance, in 2018, none of the respondents
Retailer scan 9% identified PayPal as an instore payment solution. In the same year, PayPal and Safaricom
and pay app 11% announced a collaboration, which would enable Kenyans to seamlessly move money between
12
Mobile operator their M-PESA and PayPal accounts . While this collaboration may not be the sole factor behind
contactless 7% the increased uptake of the payment solution, it has had a positive impact on its applicability in
21%
payments app the Kenyan market. This type of collaboration has also been promoted by the Central Bank of
13
Kenya .

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 20

 Cashless payment options
Figure 20: Mobile money transfers on mobile phones
In which, if any, of the following ways have you ever used your mobile phone to transfer money?

Mo What the data says

91% Mobile operator application/service is the most common
bil…
mobile money transfer option used in the country. This can
You
55% also be explained by increased accessibility of the mobile
r…
network, reduced transfer charges during the pandemic, and
Fin ease of use.
22%
a…
With increased accessibility of internet services and the
Onli continued integration of businesses with mobile applications,
15%
n…
the use of online banking, and financial institution application
By has emerged. Social payment applications and applications
14%
S… provided by the phone manufacturers and the operating
App system are not widely used in the country due to reduced
12%
/s… familiarity and applicability in the Kenyan e-commerce
Fac
landscape.
10%
e… (Continued in the next slide… )
Soci
6%
al…
Oth
er 2%

I
1%
d…

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 21

 Cashless payment options
Figure 21: E-commerce tasks performed on mobile phones
Which, if any, do you do regularly on your mobile phone?
Transfer money in and out of the country
Browse shopping websites/apps
Interact with businesses via messenger apps
Read reviews about a product/service
Check bank balances
Make other online banking transactions
Reserve or purchase online
Make reservations/bookings
Make an online purchase of a product
Pay for a taxi
Pay for public transport
Pay for a product/service in-store
Make an online purchase of a service
Online grocery shopping
What the data says
Movement of money, be it the transfer of money within and outside the country or
making payments, remains the most common e-commerce activity performed on
76%
mobile phones. This can be explained by the widespread acceptance of cashless
42% payment solutions and the integration of these solutions in both instore and online
businesses. With businesses in the country creating an online presence, consumers
36% have since taken up review of products and services on their mobile phones.
31% What it means
The demand for e-commerce in Kenya has been on a rising trajectory and it is
35%
bound to rise even further. The significant growth has mainly been seen among
30% small and medium enterprises. Various factors in the country are favoring this
growth such as the COVID-19 measures, which advocate for cashless payments,
13% initiatives of the Kenyan Government through the Central Bank of Kenya, which has
14
introduced the Kenya National Payment System Vision and Strategy 2021-2025
13%
and accessibility to internet and smartphones.
36% Rapidly advancing technologies, evolving customer expectations, and a changing
regulatory landscape are opening doors to disruptive innovation in the sector.
31% There is opportunity for FinTechs and mobile operators to advance the existing
options and develop better and more secure solutions that support the emerging
20%
trends.
19% Kenya is quickly becoming the world’s global hub for FinTech innovation.
Statista.com estimates that the total digital payments driven by FinTechs in Kenya is
16%
bound to increase from USD 4.828 million in 2021 to USD 8,910 million in 2025 thus
15
13% underscoring the importance of FinTechs in the e-commerce .

Pay for car parking 12%

Purchase tickets or passes online 11%

None of these 8%

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 22

 Privacy

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 23

 Is private data really PRIVATE?

Figure 22: How concerned are you that the companies you interact Figure 24: Do you believe that the companies you interact with
with use your personal data? online use your personal data?

49%
Very concerned
51% 34%
27%
Fairly concerned
24%
14% 2020
Not very concerned 26%
13% 2018 24%
5%
Not at all concerned
5%
6%
Don't know 16%
8%

Figure 23: Actions taken due to data privacy concerns

47%

40%
33% 32%
30%

Yes, most of the time Yes, all of the time I don't know No

Adjusted permissions Started using more Deleted my browser Read the terms and Deleted /avoided
to information secure apps history/ used conditions using an app
incognito
© 2021 Deloitte & Touche LLP Mobile Consumer Trends 24
 Is private data really PRIVATE?
Consumers are aware that they are providing personal information to online companies, but they are taking steps to ensure their data is secure when they
are online.

What the data says What it means

On the perceived use of personal data by online companies, 60% of the respondents believe
that the companies they interact with online use their personal data. In addition, 76% of the
respondents indicated that they are concerned about how online companies use their data,
compared to 75% in 2018. Further, more than 50% of the respondents indicated that they
have taken actions to safeguard their personal data by either restricting their permissions or
changing their browsing habits.
Majority of the mobile users are aware of the personal data that they willingly share with
online companies. That said, respondents have since began taking action when data privacy
concerns have arisen.
Given the high utilization of data-intensive devices such as smartphones, it is easy to grasp the
significance of consumer-based data flow. Consumers have also awakened to the ways that
companies routinely collect and monetize their personal data—the “digital exhaust” people
generate when they use apps, search engines, websites, and social networks.
16
Based on the Deloitte Global Connectivity and Mobile Trends Survey , more than ever,
consumers feel that they should have more control over how their personal data is used. If data
is the new oil, consumers are awakening to the fact that each of them is an oil well: they want to
regulate what is pumped out, and they want royalty checks. Perhaps a bigger challenge for
companies that rely on consumer data is the fact that consumers expect government to play a
role as well as the online services companies that collect their data to be “most responsible” for
protecting it.
With the enactment of Data Protection Act in 2019, data processors and controllers need to
examine how, and what data is being collected, invest in additional technology controls to
ensure that data is well protected and look at their third party and data transfer agreements to
ensure they are compliant and do not end up with data breach issues. Service provides who are

50% perceived to protect customers’ data are more likely to gunner more trust from the consumers
and effectively boost their sales volume. In addition, the continued adoption and consumer
awareness of the European Union’s General Data Protection Regulation (EU GDPR) and other
data protection laws may haunt companies that are misusing personal data.
Respondents who have
taken actions to safeguard
their personal data

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 25

 COVID-19 Sentiment

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 26

 Let’s do socials
With the pandemic leading to lockdowns and less physical interactions, consumers’ social media presence has increased.

Figure 25: Interactions due to COVID-19

Activities done more due to COVID restrictions Activities that will continue to be done after COVID restrictions

48%
43%
39%
34%
32% 31% 31%

24%
22% 21%

11% 12% 11% 11%

9%
6%

Check social media Watch videos online Online games Read news online Communicate via apps Online grocery shopping Listening to podcasts Online shopping

What the data says What it means

According to the survey, 48% of the respondents check their social media more. 43% of the
respondents are more active on YouTube and other video watching platforms as a result of
COVID-19. Furthermore, 39% of the respondents anticipate that they will continue to check
their social media as often, even after the pandemic is over. Respondents also indicated that
their online presence has increased and they will continue to interact at a similar level. The
increase in social media usage was caused by the pandemic but will continue past the
pandemic.
© 2021 Deloitte & Touche LLP
The current increased interaction with social media and other online platforms has provided an
opportunity for companies to interact with customers on these platforms. Social media platforms
continue to provide opportunities to reach the market and businesses can make use of these
opportunities and proactively address customer queries.
With this growing adoption of social media, increasingly more Kenyans are utilizing social
platforms to volunteer feedback about their experiences with service providers. Companies
should therefore invest on social media analytics and customer care solutions including training
their customer service team to efficiently manage opportunities and risks arising from the social
media platforms.
Mobile Consumer Trends 27
 Home is the new office
The pandemic has changed the idea of work. Businesses are adopting different frameworks aimed at aligning with the current social interaction
requirements.
Figure 26: Extent to which working from home is easier
What the data says
According to the survey, 22% of the respondents found it easier to work from home and 20%
found it somewhat easier since the COVID-19 pandemic started. However, 19% of the
respondents indicated it is more difficult to work from home since the pandemic started.
According to Microsoft’s 2021 report, 73% of employees surveyed expressed a desire for flexible
Much easier 22% remote work options post-pandemic, and 66% of businesses said they were considering
17
redesigning physical spaces to better accommodate hybrid work environments .
What it means
7 in 10 executives who responded to the 2021 Deloitte Global Human Capital Trends survey
18
mentioned that their organization’s shift to remote work had a positive impact on well-being
Although the pandemic provided an opportunity for employees to work from home, there is
need to provide the necessary support and tools to ensure working from home is successful. For
instance, the work from home option has increased demand for network stability and
Somewhat easier 20% affordability in Kenya. This creates an opportunity for the internet and technology providers to
fulfil this demand with consistent and high-quality service. According to the 2021 Kenyan
Telecommunication sentiment index conducted by Deloitte in partnership with BrandsEye, the
demand for a network with the high speeds and uptime increased during the pandemic.
Employers should also be cognizant of the likely technological challenges facing their staff and
negotiate with internet service providers to offer favourable internet packages to employees
working from home. Furthermore, COVID-19 has created opportunities for companies to pursue
hybrid work environments going forward. A hybrid environment has allowed companies to save
on myriad of costs such as real estate related costs, travel costs, conferences related costs, etc.
Somewhat more difficult 19%

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 28

 References
1. https://ivansanders.medium.com/how-come-we-keep-buying-new-iphones-every-year-30b5a6b1d55d
2. https://www.statista.com/statistics/716163/reasons-for-buying-a-new-smartphone-in-the-us/
3. https://www.safaricom.co.ke/get-more/other-services/lipa-mdogo-mdogo
4. TMT Prediction
5. https://www.researchgate.net/publication/348658275_IMPACT_OF_ONLINE_SHOPPING_ON_CONSUMER_BUYING_BEHAVIOUR_A_CASE_STUDY_OF_JUMIA_KENYA_NAIROBI
6. https://www.geopoll.com/blog/mobile-penetration-kenya/
7. https://ca.go.ke/authority-fines-telcos-over-ksh-300m-for-poor-quality-services/
8. TMT Predictions 2021
9. Video game console market | Deloitte Insights
10. https://www.statista.com/statistics/435252/adblock-users-worldwide/
11. https://techtrendske.co.ke/why-ecommerce-companies-in-kenya-should-adopt-digital-payments-solutions/
12. https://www.businesswire.com/news/home/20180408005081/en/PayPal-Safaricom-and-TransferTo-Announce-Collaboration-in-Kenya
13. https://www.pymnts.com/news/payment-methods/2020/central-bank-of-kenya-urges-digital-transactions/
14. https://research.cytonn.com/topicals/mobile-payments
15. https://www.statista.com/outlook/dmo/fintech/kenya#transaction-valuef
16. Connectivity and Mobile Trends Survey | Deloitte Insights
17. https://www.forbes.com/sites/forbestechcouncil/2021/06/04/going-hybrid-the-future-of-work-is-here/?sh=176c9cd82cb9
18. https://www2.deloitte.com/us/en/insights/focus/human-capital-trends/2021/workforce-trends-2020.html/#designing-work-well-being

© 2021 Deloitte & Touche LLP Mobile Consumer Trends 29

 Contacts
Urvi Patel Doris Gichuru
Technology, Media, and Associate Director
Telecommunication leader Tax & Legal
Deloitte East Africa Deloitte East Africa
ubpatel@deloitte.co.ke dgichuru@deloitte.co.ke

Contributors
Fred Kimotho Kevin Bugingo Naomi Muchai
Senior Manager Business Analyst Associate
Tax & Legal Risk Advisory Tax & Legal

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Manager Consultant
Tax & Legal Risk Advisory

Creative & Design

Daniel Gitonga
Clients & Industries

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