Kenya ict survey 2011

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Kenya ICT Board Monitoring and Evaluation Survey Results

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Kenya ict survey 2011

  1. 1. Kenya ICT Board Monitoring and Evaluation Survey Results 22ND November 2011Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  2. 2. Agenda Project Background Market Overview (Key Indicators 2010, Kenya IT Market Value (US$M) Forecast 2010-2015, Kenya IT spend by Vertical segments)ICT Ecosystem Overview - Vendor Survey (market Structure, challenges, opportunities,Vendors performance, outlook) International Benchmarking ICT Skills Survey Highlights Residential Usage and Penetration Highlights Business Survey Highlights Recommendations Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  3. 3. Project Background •Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  4. 4. BackgroundSurvey Objectives Survey Highlights Understanding the Kenyan ICT  Aims to provide ground-breaking primary research that Ecosystem and trends in the encompasses numerous market sub -segments and market. different stakeholders Sizing the ICT Market and its sub  It will leverage on existing secondary market research in segments (hardware, software, order to consolidate existing discrete market information services, etc) in Kenya.  It will have a repeat cycle to gauge the progress and Compiling a baseline of key ICT impact of KICTB and other stakeholders’ initiatives. KPIs  The survey is consultative as well – where multiple Benchmarking key Kenya ICT stakeholders are both respondents (i.e. What are your indicators against six countries issues?) and also beneficiaries (i.e. What to do?) Understanding the ICT Skills  Timely – to augment development of existing KICTB availability, demand and gaps projects – Pasha centres (rural access) , Tandaa (digital content), Wezesha (asset financing) as well as other government ICT initiatives Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  5. 5. Kenya ICT Market Overview •Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  6. 6. Market OverviewKenya ICT Market Key IndicatorsVolume of international traffic (Mbps) 20,209.56 MbpsInternational Internet bandwidth, Mbps per 10,000 population 4.2Number of Computers per 100 inhabitants 2.4% of households with a personal computer 6.3%Total number of Internet Subscriptions 4,716,977Total number of internet users 10,199,836% of population with Internet Access 25.9%Internet subscribers as % of total population 11.5%Total number of main fixed lines (fixed lines plus fixed wireless) 380,748Total number of mobile subscriptions 24,968,891Number of .Ke domain names 18,000.00% of organizations with a website 90.0%% of full time employees who use internet for work at least once a week 52.14% Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  7. 7. Market OverviewICT Spending by Technology AreasCopyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  8. 8. Market OverviewSpending by Vertical SectorsCopyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  9. 9. Kenya ICT Ecosystem •Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  10. 10. Kenya ICT EcosystemStructureCopyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  11. 11. Kenya ICT EcosystemHighlights 1/2There are an estimated 20-30 vendors present in the market most of whom rely on asmall pool of major distributors and Tier 1 Value Added Resellers (VARs) andDealers who combined account for the bulk of ICT Business in Kenya estimated atnearly 50-60%.On average PC and Printer vendors each have between three to four distributorsand at least six other partners (dealers and systems integrators) each at differentmarket levels.At the lower part of the pyramid are Tier 2 VARs and dealers, estimated to numbermore than 100 players and whose focus is part of the SME segment, the SMME andhome user segment. These are players who typically do not have a country widepresence and would largely be found operating at a provincial level or even anational level (where SMEs have such a presence to require nationwide services)but at a smaller scale nonetheless.These Tier 2 firms are mostly Kenyan owned companies serving other Kenyanowned businesses and occasionally securing parts of relatively good contracts in thegovernment and education segments, where procurement of goods or services mayrequire a local player. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  12. 12. Kenya ICT EcosystemHighlights 2/2The Tier I players largely comprise companies with both a national and regionalpresence, and in most instances are majority foreign owned companies spinning offregional offices in South Africa, UAE, India among other countries.Owing to having a good foothold in their parent regions, coupled with access toindustry best practices, fairly solid skills bases and access to capital, suchcompanies have been able to target the market segment that includes multinationalcompanies (MNCs), large enterprises and government, where such credentials bearheavily on decision making at this level.Vendor competition on channel partnerships has intensified with main distributorsbeing sought after by other vendors to leverage on their reseller network. Thusmultiple brand handling by the channels is the norm even for channel partners whowere "loyal" to certain vendors.The channel is maturing fast with thinning out of grey shipments.Telcos and telco channels are now selling PCs. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  13. 13. Kenya ICT EcosystemHighlights 2/2Vendors are keen on setting up offices in Kenya to serve the East and Central Africaregion.Vendors with a local presence enhance the brand image significantly as well asimprove logistical support and increased marketing campaigns.With more vendors setting up locally, the market has seen an increase in both thenumber of channel partners.Government initiatives including infrastructure development, regulatory reforms(licencing frameworks), investment in public access centres, e-government projects,content creation, device subsidies, have all had a very positive effect in transformingthe market, stimulating investment, ICT uptake and bolstering confidence in theoverall ICT market.Thus vendors have registered positive growth over the last three years of between•15-15% in business and with some posting growth in headcount of between 25-50% Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  14. 14. Kenya ICT EcosystemKenya as a regional Hub• Kenya is without doubt the regional hub for most vendors with a regional reach spanning between three to six Among the countries • countries on average for vendors. Kenya based vendors have reach into from• Aside from being a hub, it is also a their Kenyan hub stepping stone for these vendors to include: set up operations in neighbouring Uganda, Tanzania, • countries but still maintaining Rwanda, Burundi, somewhat centralized marketing, Ethiopia and Southern inventory and support functions at Sudan. regional levels.• Inherent in this structure are various opportunities including training, skills transfer, overall higher employment, technology leadership and increased investment. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  15. 15. Kenya ICT EcosystemChallenges facedChallenges• Currency fluctuation affecting importsOverall low purchasing power especially in 2011 with high inflation putting pressureon disposable income.Taxation on consumable products and unclear taxation framework to define variousICT imports.Product/Service quality perception vis a vis other competing products/services in themarket (e.g. pro-West stance or pro-more established brands)Lengthy customs procedures - demurrage costs passed on to users therefore higherprices. Sourcing highly qualified talent. Doing business with the government – procurement laws. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  16. 16. Market OpportunitiesSkills development.Further infrastructure investment mainly last mile access and quality of existingnetworks is crucial for more pervasive adoption.Reform tax environment to attract ICT investors.Addressing the problem of counterfeit products (consumables, devices) , withsupport of relevant government departments (in terms of scrutiny, enforcementand standards). The success experienced by counterfeiters illustrates there isgood demand for products.Skills gaps are opportunities where channel partners can intervene themselvesrather than leave it up to vendors to acquire and maintain the skills. Channelpartners can develop their own existing staff to meet some of these positions andleave the vendor to have a basic presence - a sort of shift down the tier and in linewith the earlier stated objective to deepen intimacy with customers and strengthenthe channel.Overall growth in the IT market will continue to stimulate growth in other areas.Enhance the platform for increasing regional reach. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  17. 17. Kenya ICT EcosystemVendors’ Market Outlook Investing in specific ICT Skills like mobile applications development and setting upinnovation hubs. Vendors have deliberate strategies to develop and use more local talent than imported. Setting up innovation funds at academic levels and for developer groups Entry of products relevant to the local market and environment (e.g. solar powered devices) Increased participation in government driven ICT programmes. Watching very keenly on developments with the Konza Digital City with a view to enhancingpresence and regional investment. Deepen customer relations as more intimacy is needed in the market.Reforming go to market strategies in line with a changing ecosystem underpinned bytechnological and other developments. Increase presence in the region, headcount and channel partnerships. Enhance vertical sector and product specializations – skills, products, GTM approach. Focus on infrastructure issues and how to address how lack of adequate infrastructure(power) affects uptake. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  18. 18. Benchmarking Kenya •Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  19. 19. Benchmarking Internet Users vs Connections as a % of populationIn more developed countriesthe total number ofconnections vis a vis thenumber of users are evenlyspreadIn countries like Kenya,Nigeria and Morocco, thereare lower numbers ofconnections but highernumber of users indicatingmost connections are sharedconnections and largelycomprise businessconnections (includingpublicly accessibleconnections like cyber cafes,education institutions). Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  20. 20. Benchmarking Total Internet vs Household penetrationKenya has a higher internetpenetration vis a vis South Africabut mainly bolstered by mobileinternet connections though witha lower proportion of householdsconnected owing to a decliningfixed network and poordevelopment of DSL basedservices.Kenya compares much betterthan both Nigeria and Rwandaon both countsEgypt has a much higher overalland household internetpenetration with a huge gapbetween Kenya of almost 25percentage points at householdlevel. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  21. 21. BenchmarkingComputer PenetrationKenya has slightly higherPC penetration ratesthan Nigeria and Rwandabut still very far behindSouth Africa andMorocco, mostly owing tolower disposable incomethan these countries. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  22. 22. BenchmarkingHousehold Internet Access vs Household PC AccessIn terms of PC Access at thehousehold level, Kenya is onlybetter than Rwanda.It should be noted that Nigeria asa manufacturer of PCs (Zinoxbrand) that are locally affordable,accounts for much higher PCpenetration at household levelsbut negligible household internetpenetration given infrastructureissues (submarine cables arrivedway after they did in East Africa) Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  23. 23. BenchmarkingBusiness Internet UsageIn terms of business usage ofthe internet, Kenya is nearlyon par with more developedcountries like Egypt andMorocco and slightly ahead ofNigeria Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  24. 24. BenchmarkingBroadband 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. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  25. 25. • IT Skills SurveyCopyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  26. 26. IT Skills Survey HighlightsIT Employment by Profession Of the total IT employment in Kenya (~27,000 IT professionals in 2010), IT support people represent the largest portion (27%), followed by Applications Systems Analysts and System Engineers (13% each). The structure of IT professions is slightly different for IT companies and end-users. While the IT management and administration professions prevail in the end-user segment, IT companies employ more IT development- related professionals. Source: IDC IT Skills Model Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  27. 27. IT Skills Survey HighlightsDemand Prediction by Professions Roughly 9600 IT professionals are expected to be added to the Kenyan IT workforce. The demand for individual IT professions differs by profession. Software Developers (at 70% growth) and Project Managers (at 57% growth) are the professions expected to grow the fastest over the period 2011-2013. Source: IDC IT Skills Model Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  28. 28. IT Skills Survey HighlightsAvailability of IT Professionals Application Systems Analysts and Software Developers are the IT professions that are least available. Approximately 45% of respondents reported they are very difficult or difficult to find. On the contrary, IT Support people and IT Administrators are much easier to find – only for less than 10% of respondents, they were reported as very difficult of difficult to find. Source: IDC IT Skills Research Source: Business Survey N = 158 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  29. 29. IT Skills Survey HighlightsDemand/Availability Matrix for IT Professions Consider Focus% of companies reported very difficult or difficult Di Application Syste ms Software developer Analy sttluciff System Engineer Av IT Manager/ IT Consultant IT Project to find Direct or M Team Leader a Web Designer n ailibalia IT Administrator E g IT Support e Monitor r y s a Low Demand High New jobs growth between 2011 and 2013 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  30. 30. IT Skills Survey Highlights Demand Prediction by IT Skills The demand for individual IT professions differs. The most growing demand will be seen for IT Project Management Skills (136%) and Software development skills (135%). IT Administration and HW skills are projected to grow at the lowest rate – less than 12%. Source: IDC IT Skills Model Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  31. 31. IT Skills Survey Highlights Availability of IT Skills Software development/deployment & Enterprise/business application skills are least available – for approximately 30% of interviewed organizations, these professions are very difficult or difficult to find. Project management, security and mobile technology skills were also reported as difficult to find. Internet-related & Networking skills are available and easy to find. Source: Business Survey N = 158 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  32. 32. IT Skills Survey HighlightsDemand/Availability Matrix for IT Skills Consider Focus% of companies reported very difficult or difficult Di Software Enterprise/Business Devel Applicati opme ons nttluciff Security IT Project Data Mobile Ma S T na Av t e ge to find o Databases c me HW r h nt IT Adm. a Networking n g olilibalia E Internet e o gi Monitor e s y s a Low Demand High New jobs growth between 2011 and 2013 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  33. 33. IT Skills Survey HighlightsSupply side: Skills lacking in graduates  Skills lacking in graduates: Interviewees were asked about the skills they thought their graduates were lacking in or particularly strong in, following are the skills plotted representing an average of the ratings. Hardware Problem s s k o Software i l s l v k l i i s n l LACKING g l STRONG IN Skills in graduates s Project Structured & Team skills m Inn a ov n ativ  a e Software skills and Problem solving skills rated the highest while hardware and project g thi management skills rated much lower. e nki ng Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  34. 34. IT Skills Survey Highlights Demand Side : Skills lacking in graduates Q: What type of skills are the graduates particularly When probed on the types of skills usually lacking? lacking in graduates, companies cited Innovative thinking, Problem solving and Project management/implementation as the top three skills that are lacking Some of these findings were seconded by the university interviewees which indicated lower ratings on project management/implementation skills and innovative thinking. Based on some interviews with ICT companies, Business/ Soft skills were cited as lacking in graduates as well as keeping up with technology trends; the view was expressed that the gap between theory and practice needs to be bridged via mediums such as Source: Business Survey internships Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  35. 35. IT Skills Survey HighlightsOverall business perception of IT Skills Roughly a quarter of companies are not satisfied with the quality of IT professionals from educational institutions in Kenya Approximately a third of companies have contacted or plan to contact external providers to manage the skills shortages. Roughly half of the respondents believe that the lack of IT skills significantly impacts business and IT operations & performance. Source: Business Survey Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  36. 36. IT Skills Survey HighlightsInhibitors – Supply Side/Educ inst view • Funding and Infrastructure constraints cause less availability of resources and labs; not all the educational institutions are adequately networked • Scarcity of experienced faculty and a general shortage of teaching skills for technology; it was also indicated that it is tough for educational institutions to match private sector pay • Last-mile connectivity to rural areas was also cited as an inhibitor. This severely limits the availability and accessibility of internet, both from a quality and price perspective • Quality of education: The view was expressed by more than one interviewee that skills obtained from many colleges and institutions are not adequate for the industry. Consistency of curriculum was a common theme, with the lack of guidelines emphasized. The watered-down value of certifications and lack of market-relevant courses in some educational institutions were other themes. • General lack of understanding of IT as a career Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  37. 37. IT Skills Survey HighlightsInhibitors - Businesses view Q. In your opinion, what are the key factors hampering the availability of IT skilled professionals in the country? Source: Business Survey Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  38. 38. Residents Survey Highlights •Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  39. 39. IT Skills Survey Highlights IT companies view of inhibitors of IT skills Some large ICT companies were of the opinion that that the overall skills pool in the Kenyan market is rather limited. The view was also expressed that there is more of a gap at the advanced skills level as many IT professionals with advanced skills leave the Kenyan market while there is not much of an influx of experienced professionals from abroad. Another related issue is loyalty and attrition; IT professionals are perceived as migratory and there seems to be a fair bit of poaching; an opinion which is consistent with the business survey where 80% of the companies indicated that attrition has a minor to significant impact on their organizations. Frequency and size of IT projects: The view was expressed that there may not be enough big IT projects that can result in a large pool of skilled personnel, consequently there are not enough projects that allow professionals to exhibit or develop their skills. Availability of lower cost imported ICT labour was also cited as an inhibitor to skills supply. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  40. 40. IT IT Skills Survey Highlights P r o Gap analysis framework f e s s i o n a l s Training/ Re- t r f r a o i m n a i b ‘Unqualified’ Students n r s o w g u a h p d o‘Brain drain’ p es l g pe y o cia lly o a r Attrition b at hig r he S o r k a Gaps filled by expats Gap Sk i d for ill l short-Move to o term lev l m r project els s a Demand duratio n n p m Copyrighta IDC. Reproduction is forbidden unless authorized. All rights reserved. i u
  41. 41. IT Skills Survey HighlightsDimensions of the gap in IT skills Technical gaps • Enterprise/busine ss application skills, software development, mobile applications • IBM and SAP related technology skills Higher-level gaps • Shortage of experienced IT Graduate-level skill gaps personnel Gap in IT • Project management • Poaching and moving prof • Problem solving abroad i.e. ‘brain drain’ ess • Innovative thinking reported; also technical staff ion • Gap between theoretical moving to management als and practical skills; tracks insistence of some • Experienced professionals experience from IT firms from abroad not coming in Quality gaps • Candidates who have certifications and educational qualifications but do not bring the expected quality • Inconsistencies in course duration and curriculum within the courses Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  42. 42. IT Skills Survey Highlights Overall Recommendation areas and initiatives Establish specialized trainingExpand capacities of universities programs for Integrate ICT in education and colleges graduates• Provide infrastructure and funding • Focus on recognized skill gaps such • Incorporate more ICT elements at support as business skills and ‘soft’ skills secondary level• Address qualified teaching shortage; • Partner with training/ICT companies; • More attachment programs and Evaluate & incentivize the supply encourage investment to ensure internships with technology training availability companies to learn and apply Harmonize and monitor supply &Focus on special interest areas Improve connectivity demand• Local context and relevance e.g. ICT • Provide last-mile connectivity • Definitions and quantification of in agriculture through pricing incentives demand roles and types of skills• Innovation areas similar to m-pesa • Help middle and lower tiers of • Policy on course design and criteria• Incentivize reverse brain drain i.e. educational institutions to get to fulfil these roles Kenyans based abroad connected • Open up data to relevant stakeholdersFinancing & Support Review ICT curricula Promote IT as a career• Specialized funding for ICT courses • More regulation, more rigor and • Attract more people (especially youth• ICT incubators with educational standardization and females) via promotional institutions • Public-private partnership body to campaigns• Tax relief & special funds for ensure curriculum standardization • Attractive industry compensation technology focus areas • Online mechanism with Assessment standards of IT skills onlineGovernment organizations, IT companies and Educational institutions would need to collaborate extensively in the above areas to achieve the ICT skills-related objectives related to the Strategic Plan and Kenya 2030. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  43. 43. IT Skills Survey HighlightsProjects prioritization Consider Implement Expand capacities of univer High sities Review university curricula and colleg Focus on special interest Improve connectivity es areas Establish specialized progr ams for Promote IT as a career Financing & Support grad uate Integrate ICT in education s Harmonize and monitor Impact suppl y& dema nd Low Ease of implementation High Low Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  44. 44. Residents Survey Highlights •Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  45. 45. Resident’s Survey HighlightsInternet Usage at home Internet Home Penetration by Location Internet Home Penetration by SCL Base : Total Sample (750)  26% of the surveyed HH use internet  Internet usage increases by SCL levels. It is highest in Mombasa (37%) Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  46. 46. Internet Usage at homeInhibitors for Not Using internet at home Q17. What are the reasons for not having internet connection at home till now? Highest in Eldoret (77%), in SCL D (77%), Highest in Kisumu (43%), in SCL C2 (39%), Highest in Nyeri (21%), in SCL AB (18%), among the 15-24 yrs (22%) Highest in Nyeri (32%), in SCL AB (17%) Highest in SCL D (36%), among the 45+ yrs (26%) Highest in Kisumu (11%)  Unavailability of PC is the main reason for not using internet from homes (58%)  The usage of internet within low SCL’s (D and C2) is mainly hindered by their inability to buy PC’s or pay for internet connection Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  47. 47. Kind of PC, Internet Device & Mobile Service Used Q25. What kind of PC do you use? Q60. Which kind of mobile service do you use? Base : Users of PC (519) Base : Users of Mobile Phone (746) Q31. Which of the following devices have you used to access the Internet in the past 12 months?  Accessing internet is largely done from mobiles, either internet-enabled handsets (80%) or smartphones (15%)  A significant portion of PC usage (desktop or laptop) is dedicated to accessing the internet Base : Users of Internet (592) Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  48. 48. Purposes for Using PC Q27. What is your primary purpose for using the PC? Detailed by Age Detailed by Gender Overall 15 – 24 25-34 35-44 45+ Male Female (206) (219) (163) (67) (70) (313) 69% 72% 72% 76% 71% 71% 77% 70% 49% 40% 68% 64% 63% 65% 66% 67% 64% 65% 57% 42% 27% 30% 43% 47% 20% 44% 43% 59% 40% 29% Base : Users of PC (519)  Respondents use PC mainly to perform personal task (71%), 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 (35+yrs)  Old males (45+ yrs) tend to use PC for work reasons much more than other demographics. Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  49. 49. Purposes for Using the Mobile Phone Q59. Which of the following services do you actively use on your mobile device? Detailed by Age Detailed by Gender Overall 15 – 24 25-34 35-44 45+ Male Female (219) (163) (67) (70) (313) (206) 97% 96% 97% 99% 97% 96% 97% 97% 99% 88% 96% 95% 51% 52% 41% 26% 46% 45% 53% 45% 34% 23% 44% 40% 47% 41% 31% 17% 39% 34% 42% 35% 34% 24% 38% 31% 36% 31% 32% 21% 30% 32% 33% 23% 20% 10% 25% 22% 20% 17% 10% 8% 18% 12% Base : Users of Mobile Phone (746)  Calling and texting share respondents main usage of the mobile (around 97%)  The usage of internet enabled services and PIM mainly attracts the young category (15-24 yrs). Their usage decreases significantly by age Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  50. 50. Confidence in Using the PCOverall Q47a. How confident are you in using…  Highest confidence is recorded in the areas of text processing (68%) and working with spreadsheets(57%)  PC users are least confident in maintaining the computer (checking and solving problems, 36%) and programming (31%) Base = Users of PC Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. (n=519)
  51. 51. Confidence in Using the InternetOverall Q47b. How confident are you in using…  Highest confidence is recorded in the areas of using search engines (80%) and email communication (79%)  Internet users are least confident in creating web pages / blogs (29%) Copyright IDC. Reproduction is forbidden unless authorized. AllUsers of Internet Base = rights reserved. (n=592)
  52. 52. Financial Transactions on the Internet and MobileType 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? Base : Respondents Using Online Banking or purchases (510)  4 of the top 5 e-transactions are done via mobile  Online e-transactions are almost not present and include online banking (4%), utility payments (3%) and the purchase of products and services (2%) Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  53. 53. Tasks Performed on the Internet Q34. Do you use the Internet to perform any of the following tasks? Detailed by Age Detailed by Gender 15 - 24 25-34 35-44 45+ Male Female (238) (182) (88) (84) (346) (246) 81% 82% 76% 57% 79% 76% 68% 70% 66% 64% 70% 65% 48% 42% 24% 29% 39% 40% 37% 27% 23% 19% 31% 26% 25% 30% 26% 33% 27% 29% 19% 34% 26% 34% 29% 25% 28% 23% 14% 8% 25% 18% 21% 25% 22% 19% 25% 18% 17% 21% 23% 29% 21% 20% 13% 10% 14% 11% 13% 11% 11% 13% 14% 16% 13% 11% 6% 11% 13% 8% 10% 7% 6% 8% 10% 5% 8% 7% 4% 5% 7% 2% 5% 4% 5% 8% 2% 5% 6% 4% 2% 4% 0% 4% 4% 1% Base : Users of Internet (592)  The main purposes for using the internet are communicating with colleagues (77%) and searching for information (68%), 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 Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  54. 54. Satisfaction With Internet ServiceQ46. 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 Base : Users of Internet (592)  68% of internet services are satisfied with the overall internet service. This is mainly driven by the reliability, speed and cost of this service  Internet users record lowest satisfaction with the support they are getting from providers (41%) Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  55. 55. Awareness of e-Government ServicesQ65. 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? Base : Total Sample (750)  Overall awareness of e-government services is significant (53%). But their actual usage is low (23%), concentrated especially in Nyeri (23%) Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  56. 56. Type of e-Government Services Used in Past 12 MonthsQ66. Which of the following e-government services have you used in the past 12 months for none-work related matters? Copyright IDC. Reproduction isBase = Users of e-Government Services forbidden unless authorized. All rights reserved. in Past 12 Months (n=103)
  57. 57. Other e-Government Services Q68. Are there any other government services you would like to see available on line? Advertisement of Government positions 20% Application of birth certificates 13% Electronic elections 13% Processing of licenses by KRA - Any other government services you would like available online 7% Title deeds acquisition 7% Downloadable ID cards/ passports 7% How the budget is prepared/processed 7% People with disabilities should be put online 7% Show/upload government services 7% City council stickers 7% Efficiency/accountability of government related work and projects 7% Payment of council levies 7% Appointments for government positions 7% ID registration 7% None/Don’t Know : 85% Copyright IDC. Reproduction isBase = Users of e-Government Services forbidden unless authorized. All rights reserved. in Past 12 Months (n=103)
  58. 58. Barriers to ICT Usage Q63. What are some of the reasons that may be limiting your use of ICT (computers and Internet)? Detailed by Location Mombasa Eldoret Kisumu Nyeri Nairobi (253) (179) (98) (120) (100) 37% 36% 40% 58% 30% 41% 31% 32% 43% 25% 25% 34% 34% 38% 26% 24% 27% 19% 33% 21% 20% 18% 14% 15% 27% 21% 15% 16% 24% 20% 21% 18% 15% 3% 19% 14% 18% 6% 14% 19% 11% 7% 5% 18% 6% 8% 14% 4% 23% 2% 7% 9% 2% 16% 1% 6% 9% 8% 7% 6% 3% 7% 1% 7% 4% 0% 8% 1% 8% 1% 3% 2% 0% 3% 6% Base : Total Sample (750)  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  Residents of Kisumu are mostly affected by these barriers compared to respondents from other cities. Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
  59. 59. Recap of Main Findings Acquiring ICT skills in Kenya is significantly affected by the overall social status of households and respondents The unavailability of PC and internet at homes due mainly to their high cost and the inability of respondents to purchase them emerges as the main barrier against ICT knowledge Another barrier is the absence of internet infrastructure in some neighbours which is prohibiting those who are financially capable (SCL AB) form enjoying this service This is leading to the fact that most internet access is done via mobile or from places outside home where respondents are satisfied by its cost, speed and reliability Usage of PC, internet and mobiles is generally limited to basic features The same main barriers (cost and unavailability of PC and internet) that are reducing the use of internet and PC are also preventing respondents from taking ICT training courses With these factors pressing, only 16% of respondents have been trained on ICT skills in the last year Respondents are aiming to increase their general basic skills for using mobiles, PC and internet. They reflect less desire to learn advanced features Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  60. 60. Business Survey Highlights •Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  61. 61. Business Digital Presence Which of the following does your organization have at present? Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  62. 62. Business Digital Presence Constraints for internet usage Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  63. 63. Business Digital Presence Total number of full time employees that have access or use shared / dedicated PC Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  64. 64. Awareness and Usage of e-government services Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  65. 65. Satisfaction with e-government services Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  66. 66. Recommendations IT Skills GapsMacro Details ActionArea Broad Recommendations Awareness programmes at education institutions on: business needs vis a vis courses taken; Increase type of skills in high demand for the next 3-5 years output of current MIXTURE of skills needed number of attract the youth via promotional campaigns skilled staff Include middle & lower tiers of educational institutions to get Focus connectedIT Bridging programmes to involve academia, graduates and ICT BusinessSki Enhance leaders Curriculum refresh and plan to do this regularly quality oflls skills Inclusion of basic soft skills courses as part of the curriculum Establishment of Industry Standards, Accreditation and Ethics body Specialized funding for ICT courses Focus Partner with training/ICT companies and ensure training availability Mechanism to balance the need for expat labour vs skills transfer value Protect local Incentivize Diaspora to reverse brain drain jobs & stem More attachment programs and internships with technology brain drain Consider companies to learn and apply Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  67. 67. Recommendations Residential UsageMacro Details Action Broad RecommendationsArea increase e-govt Awareness programmes on services currently offered and follow services Focus up on suggested online government servicesRe awareness increase e-govt Leverage mobile operators to update citizens on governmentsid services usage Focus services vis SMS (subsidized cost for government for bulk SMS). Deploy relevant USSD driven services for citizensent Solicit feedback on content of interest, esp. from non-users Create awareness on other content and services Content - review feedback on content most used and share withial beneficiaries of digital content funds to take ICT Adoption Consider action/innovate/respondUs Close collaboration with media to pursue the internet as a channel for delivery.ag Address costs - See macro item COST below Access - see macro item INFRASTRUCTURE and COST below Prioritized subsidies of public access centers after evaluation e Cost of services/Devices Focus Provide infrastructure support and services subsidies Re-animate local assembly initiatives through vendor PPP and with political will Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  68. 68. Recommendations Business Usage and Costs Macro Details Action Area Broad Recommendations e-govt Awareness creation on existing content and services services Focus Leverage on high internet adoption to interact with businesses moreBusi awareness via a various databases (e.g. customs, taxes, registry, immigration etc)nes e-govt s services usage Focus Roll out more services and solicit feedback on what is neededUsa Skilled Staff Monitor See SKILLS macro ge ICT Cost of services and Quality of Services - need to sensitize business Monitor users of their rights in collaboration with the sector regulator. Adoption Collaborative campaigns. Internet Consider Further subsidize public access areas, secondary schools ServicesCos PC Costs Consider Revive local assembly initiatives (e.g. Nigeria with Zinox) t Mobile Device Consider Partnerships with vendors of low cost devices, tap into local application community Costs Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  69. 69. RecommendationsChannel & Infrastructure Macro Details Action Area Broad Recommendations Vendor confidence & investment Monitor See Skills Macro Above See SKILLS Macro above Focused marketing & local promotional events that explicitly illustrate strengths ForeignChan Investment nel Nurture Tier 2 players as possible partners through capacity building, seed Focus funding, preferential treatment in government procurement Tier 1 VAR Monitor Develop plans to help elevate Tier II players into Tier I players Tier 2 VAR Business Incubation Initiatives Focus Capacity building outside urban areas and create employment Last Mile Pursue CCK about USF plans and enjoin KITCB in discussions on ICT Access Gaps Access Consider Collaborate with CCK to sensitise operators on USFInfras Backhaul to Develop a PPP framework & depart from ad hoc, covertly commercially oriented PPPs that lack synergies and leveraging value. truct remote Consider wireless/satellite technology elements in national infrastructure plans ure areas for remote areas to mix with other technologies for last mile access Offer subsidies (and reward schemes) to operators with renewable energy Power focus or innovation that address power issues Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  70. 70. Interventions for Recommendations Macro areas addressed Financial Infrastructure Skills Residential Channel Cost Private Public Partnerships Infrastructure Skills Residential Cost Regulation Infrastructure Business Residential Channel Awareness Skills Business Residential Content Skills Business Residential Curriculum reform Skills Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
  71. 71. Thank You • • Tablet OEM SiteCopyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

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