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

Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 3

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.


Market Overview
Kenya ICT Market Key Indicators
Indicators 2010 2011 Change
%

Volume of international traffic (Mbps) 20,209.56 52,938.00 162%

International Internet bandwidth, Mbps per 10,000 4.2 7.7 83%
population

Number of Computers per 100 inhabitants 2.4 2.7 14%

percentage of households with a personal computer 6% 8% 27%

Total number of Internet Subscriptions 4,716,977.00 6,152,687.00 30%

Total number of internet users 10,199,836.0 17,382,034.00 70%
0

Total number of main fixed lines (fixed lines plus 380,748.00 283,546.00 -26%
fixed wireless)

Total number of mobile subscriptions 24,968,891.0 28,080,771.00 12%
0

Number of .Ke domain names 18,000.00 24,322.00 35%


Market Overview
2010 Data 2011 Data Change
Connectivity development (%)
1 Volume of international traffic (Mbps) 20,209.00 52,938.00 162.0%

2 International Internet bandwidth, Mbps per 10,000 4.2 ++7.7 83.3%
population++ 
3 Number of Computers per 100 inhabitants 2.4 2.7 13.9%

4 % of households with a personal computer 6.3% 8.0% 27.0%

5 Total number of Internet Subscriptions 4,716,977 6,152,687 30.4%

6 Total number of internet users 10,199,836 17,382,034 70.4%

7 % of population with Internet Access 0.26 0.36 40.2%

8 Internet subscribers as % of total population 11.5% 14.8% 28.6%

9 Total number of main fixed lines (fixed lines plus fixed 380,748 283,546 -25.5%
wireless) 
10 Total Fixed line penetration (per 100 inhabitants) 97.0% 72.0% -25.8%

11 Total number of mobile subscriptions 24,968,891 28,080,771 12.5%

12 Total penetration of mobile services (per 100 63.2% 71.3% 12.8%
inhabitants) 
13 Total teledensity 64.2% 72.0% 12.2%

14 Number of .Ke domain names 18,000 24,322 35.1%

15 IT Spending per capita $18.5 $24.4 32.1%

++per user from 2011

Market Overview
Broadband demand is not constrained by cost or access
22 Price of Internet Access for 512 Kbps $22.00 $22.00 0.0% 
23 Fixed broadband Internet access tariff ($ per month) $39.80 $37.90 -4.8%


24 Dial up Internet tariff ($ per Month) $29.5 $29.3 -0.7%

25 Number of BPO jobs 12,500 13,100 4.8%

26 Number of BPO seats 5,000 5,696 13.9%



Universities are connected to broadband services
27 Number of educational institutions connected to national network 60 65 8.3%


28 Number of educational campuses connected to national network 74 78 5.4%


29 Number of students connected to broadband 176,000 250,000 42.0%


30 Number of universities connected to broadband 15 29 93.3%


31 Number of networked PCs per 100 students 6 5 -16.7%

++per user from 2011 

Highlights
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


Kenya ICT Ecosystem


Kenya ICT Ecosystem
Structure – Systems Integrators
CHANNEL REVENUE BREAKDOWN REMARKS


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.


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;


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


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.


Residents Survey Highlights


Devices at home & Household Composition

Q15. How many of each of the following types of devices do you have at home?
Average Number Maximum Number
Type
per HH per HH
Desktop 0.33 2
Laptop 0.52 3
Television Set 1.00 3
Fixed telephone line (CDMA, Fixed wireless, Dial up) 0.01 1
Mobile cellular telephone/Handphone/Mobile phone 1.84 7
Satellite Antenna (Satellite dish) 0.23 1
Radio set 0.87 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.

Resident’s Survey Highlights
Internet Usage at home

Q16. Do you have an Internet connection at Internet Home Penetration by Location
home?
41% 32% 33%
49% 49% 65% 64%
66% 72%

59% 68% 67%
51% 51% 35% 36%
34% 28%
50% 50%

Thika
Eldoret

Garissa
Nairobi

Kisumu
Mombasa

Nakuru

Machakos

Kakamega
Internet Home Penetration by SCL
Yes No
Base : Total Sample (750) 43% 42%
63%
85% 95%
57% 58%
37%
15% 5%
AB C1 C2 D E

Yes No

 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

Base = The figure in parenthesis represents
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category

Type & Speed of Connection

Q18. What type of Internet connection Q19. What is the speed of your main internet connection at
do you have at home? home?

Mobile broadband / Broadband delivering speed of 256
narrowband Connection 87% 32%
kbps to less than 1 Mbps
/modem
Broadband delivering speeds from
ADSL line (dedicated line for 27%
4% 1Mbps to less than 4Mbps
internet (broadband)
Broadband delivering speeds from
19%
Dial up connection (using 4Mbps to less than 8Mbps
1%
fixed phone line connection)
Broadband delivering speeds higher
16%
than 8Mbps
Other connections 34%
Don't know 6%

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


Inhibitors for Not Using internet at home

Q17. What are the reasons for not having internet
connection at home till now?

We don’t have PC 63%

We can’t afford internet subscription 35%

I use internet in other places, and there
33%
is no need to have one at home

There are no internet cables /
23%
infrastructure in our neighborhood

I don’t know how to use internet 11%

Internet connections are poor in terms
3%
of quality

Base : No Users of Internet (540)

22


Type of PC, Internet Device & Mobile Service Used

Q25. What kind of PC do you use?
Included
Desktop 78%
media tablets
Laptop 61% in Phase II

Media Tablet 14%

Base : Users of PC (493)

Q31. Which of the following devices have you used to access the
Internet in the past 12 months?

Desktop 78%
Q60. Which kind of mobile service do you use?
Laptop 60%
Prepaid 96%
Other mobile phone / internet
57%
enabled mobile phones Postpaid 3%
Smartphone 37%
Both 1%
Media Tablet 9%

Base : Users of Mobile Phone (746)
Base : Users of Internet (570)

23


Purposes for Using PC

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

2012 2011

Communication 83% Personal usage 71%

Entertainment 66%
Entertainment 66%
Communicatio
64%
Work 57% n

Education 45%
Other Personal
54%
purposes
Work 36%
Education 28%


 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. 24


Purposes for Using the Mobile Phone

Q59. Which of the following services do you actively use on your mobile device?

2012 2011

SMS 98% Voice services 97%
Voice services 97% SMS 96%
Social media 65% Access to social media websites 45%
Web Browsing 57% Web Browsing 42%
Access to Email 52% Entertainment 37%
Entertainment 50% Access to Email 35%
Chatting (IM) 41% PIM 31%
PIM (personal information… 35% Chatting 24%
MMS 18% Sending MMS 15%


 Calling and texting share respondents' main usage of the mobile (around 97-98%)

 The usage of internet enabled services and PIM mainly attracts the young category (15-34 yrs). Their usage decreases
by age

25


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 96%

Payments (utility & mobile bills etc) through Mobile Money … 55%

Buying of product through Mobile (Mobile Money transfer) 36%

Selling of product through Mobile (Mobile Money transfer) 34%

Payments of School fees through money mobile transfer 23%

Banking (online Banking transaction) 7%

Payments (utility & mobile bills etc) through Internet 6%

Buying of product and services through internet 5%

Selling of product and services through internet 3%

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%)
26


Tasks Performed on the Internet

Q34. Do you use the Internet to perform any of the following tasks?

Search for information 75%
Communicate with colleagues 64%
Downloading movies, images, music, watching TV or video, or… 59%
Communicate with customers/citizens/ residents 37%
Getting information about goods or services 33%
Education and learning activities 33%
Playing or downloading video games or computer games 30%
Finding, downloading, and installing software 29%
Reading or downloading on-line newspapers or magazines 26%
Using peer-to-peer file sharing for exchanging… 25%
Keeping viruses, spyware, and ad-ware off your computer 23%
Schedule business appointments 16%
Getting information from general government organizations 14%
Checking a receipt of payments 8%
Purchase or place orders goods and services 8%
Online banking 6%
Interacting with general government organizations 6%

 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 11% 20% 69%

Value for money spent on your Internet service 15% 24% 61%

Reliability of your Internet service 12% 18% 70%

Speed of your Internet service 18% 20% 62%

Customer support after sales 21% 39% 40%

Overall Internet service 5% 24% 71%

Dissatisfied (Scale 1-3) Neutral (Scale 4) Satisfiied (Scale 5-7)



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
9% 13% 78%
important to my life now and in the future.
Learning how to use the Internet better is important to my life
7% 10% 83%
now and in the future.

Having PC skills is critical to my life now and in the future. 4% 15% 80%

Using on-line banking services is important to my life. 32% 28% 41%

Purchasing goods on-line is important to my life. 40% 29% 32%

Bottom Box (scale 1-3) : Disagree
Middle Box (scale 4) : Neutral
Top Box (scale 5-7) : Agree

 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 Not aware of any services
47% 34%
provided online provided online

Aware of them, and have used
any online services more than 16%
Aware of them, but have never 12 months ago
39%
used any online services
Aware of them, but have not
used any online services in the 36%
past 12 months
Aware of them and have used
14% Aware of them and have used
them in the past 12 months 14%
them in the past 12 months

Base : Total Sample (750) Base : Total Sample (750)

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”


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 7% 69% 24%

Easiness of using it 19% 27% 54%

Quickness of processing the transaction 16% 63% 21%

Quality of the transaction in general 3% 66% 31%

Bottom Box (1-3) : Dissatisfied 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. 12%
Online admission into Secondary / public universities. 9%
Appointment /job application/employment opportunities. 6%
Application/ issuance of Birth certificates. 6%
Voting online. 5%
Payment of Land Rates. 4%
Lists of corrupt High Ranked Government Officials. 4%
Application of passport/other travelling document. 2%
Online booking in government hospitals/health services appointment. 1%
Variety of government businesses. 1%
Application of CDF bursaries. 1%
Registration of new business online . 1%
Online checking of Motor Vehicles ownership. 1%
Business purposes/International document to do business with other countries and also between local businesses. 1%

None/Don’t 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 38%
High costs of buying/renting computers 35%
High costs of maintenance and repairs for computers 33%
Risk of viruses is too high when using the Internet 21%
Lack of required skills to use computers/ internet 18%
Lack of trust for ICT (e.g. security/ privacy issues on the… 18%
Computers/Internet not available at home 16%
There are no barriers at all 16%
Technology is too complicated 14%
Not secure to do business/ make transactions over the… 9%
Internet cafés are hard to reach or find 7%
Computers/Internet not available at work 5%
Computers/Internet not available at school/ university 4%
Not enough websites / content in local language 3%

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


Benchmarking
Internet user penetration
KPI Total Internet user penetration
2010 22.5%
Kenya 2011 25.9%
YoY change 15.1%
2010 14.0%
RSA 2011 12.3%
YoY change -12.1%
2010 28.3%
Nigeria 2011 28.4%
YoY change 0.2%
2010 12.7%
Rwanda 2011 13.0%
YoY change 2.2%
2010 33.3%
Ukraine 2011 45.0%
YoY change 35%
2010 invalid data
Philipines 2011 invalid data
YoY change
2010 29.5%
Egypt 2011 26.7%
YoY change -9.4%
2010 41.4%
Morocco 2011 49.0%
YoY change 18.3%


Benchmarking
Extent of business internet use
KPI Extent of Business Internet Use - WEF Indicator
2010 4.77
Kenya 2011 5.0
YoY change 4.8%
2010 5.14
RSA 2011 5.3
YoY change 3.1%
2010 4.5
Nigeria 2011 4.5
YoY change 0.0%
2010 1.75
Rwanda 2011 4.9
YoY change 180.0%
2010 4.72
Ukraine 2011 5.1
YoY change 8%
2010 4.5
Philipines 2011 5.6
YoY change 24.4%
2010 4.72
Egypt 2011 4.9
YoY change 3.8%
2010 4.6
Morocco 2011 4.5
YoY change -2.2%

Benchmarking
Government ICT Use and Efficiency

KPI ICT Use and Government Efficiency - WEF Indicator
2010 4.35
Kenya 2011 4.4
YoY change 1.1%
2010 4.07
RSA 2011 3.9
YoY change -4.2%
2010 3.8
Nigeria 2011 3.8
YoY change 0.0%
2010 no data
Rwanda 2011 5.5
YoY change
2010 3.56
Ukraine 2011 3.6
YoY change 1%
2010 3.6
Philipines 2011 3.7
YoY change 2.8%
2010 4.43
Egypt 2011 3.9
YoY change -12.0%
2010 4.2
Morocco 2011 4.0
YoY change -4.8%


Benchmarking
Government Online service Index

KPI Government Online Service Index - WEF Indicator
2010 0.24
Kenya 2011 0.2
YoY change 0.0%
2010 0.31
RSA 2011 0.3
YoY change 0.0%
2010 0.1
Nigeria 2011 0.1
YoY change 0.0%
2010 0.17
Rwanda 2011 0.2
YoY change 0.0%
2010 0.35
Ukraine 2011 0.4
YoY change 0%
2010 0.39
Philipines 2011 0.4
YoY change 0.0%
2010 0.53
Egypt 2011 0.5
YoY change 0.0%
2010 0.24
Morocco 2011 0.2
YoY change 0.0%


Benchmarking
Internet Users vs Connections as a % of population

Internet Users vs Connections as a % of population
In more developed 60.0%

countries the total number of
connections vis a vis the 50.0%
number of users are evenly
spread
40.0%
In countries like
Kenya, Nigeria and
Morocco, there are lower 30.0%
numbers of connections but
higher number of users
20.0%
indicating most connections
are shared connections and
largely comprise business 10.0%
connections (including
publicly accessible
0.0%
connections like cyber
Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco
cafes, education institutions).
Total Internet user penetration
Internet subscribers percentage of total population


Benchmarking
Total Internet vs Household penetration

Total Internet vs Household penetration
Kenya has a higher internet 45.0%

penetration vis a vis South Africa
40.0%
but mainly bolstered by mobile
internet connections though with 35.0%
a lower proportion of households
connected owing to a declining 30.0%

fixed network and poor
25.0%
development of DSL based
services. 20.0%

Kenya compares much better 15.0%
than both Nigeria and Rwanda
on both counts 10.0%

Egypt has a much higher 5.0%
overall and household internet
0.0%
penetration with a huge gap of
almost 25 percentage points at
household level. Proportion of households with internet access Total Internet user penetration


Benchmarking
Computer Penetration

Computers per 100 inhabitants
Kenya has slightly higher 9
PC penetration rates than
Nigeria and Rwanda but still 8

very far behind South Africa
7
and Morocco, mostly owing
to lower disposable income 6

than these countries.
5

Population figures for
4
Nigeria (high) and Phillipnes
(low) help skew penetration 3

rates either way as do GDP
2
per capita figures when
thinking of disposable 1

income and installed base
0
of computers in households. Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco


Benchmarking
Household Internet Access vs Household PC Access

Household Internet Access vs PC
35.0%
In terms of PC Access at the
30.0%
household level, Kenya is only
better than Rwanda. 25.0%

It should be noted that Nigeria 20.0%

as a manufacturer of PCs (Zinox
15.0%
brand) that are locally
affordable, accounts for much 10.0%

higher PC penetration at 5.0%
household levels but negligible
household internet penetration 0.0%

given infrastruicture issues
(subamrine cables arrived way
after they did in East Africa) Proportion of households with internet access
Proportion of households with a computer


Benchmarking
Business Internet Usage

Business Internet Usage

Morocco

Egypt
In terms of business usage
of the internet, Kenya is Philipines

nearly on par with more Ukraine
developed countries like
Egypt and Morocco and Rwanda

slightly ahead of Nigeria Nigeria

RSA

Kenya

0 1 2 3 4 5 6

Extent of Business Internet Use - WEF Indicator


Benchmarking
Broadband Access Tariffs

Broadband Access Tariffs
$120.00
Despite additional
capacity, cost of broadband
is still a factor for business $100.00

vis a vis other countries.
Nigeria has recently got a $80.00

lot of international bandwidth
but constrained somewhat $60.00
by back bone, last mile
access and electricity
$40.00
challenges.
Landlocked Rwanda
$20.00
largely relies on bandwidth
from operators in
neighbouring countries. $0.00

Internet Access Tariff - Broadband


fhook@idc.com


Kenya ict-market-survey-julisha-ii

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