Kenya ICT Market Survey - Julisha II

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

Kenya ICT Board Monitoring and Evaluation Survey Results

(Phase II)

Francis HookRegional Manager

IDC East Africa

Kenya ICT Board Monitoring and Evaluation Survey Results

(Phase II)

Francis HookRegional Manager

IDC East Africa

19th February 2013


AgendaAgenda

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

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

Kenya ICT Market Overview


Market OverviewMarket 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 OverviewKenya ICT Market Key IndicatorsMarket OverviewKenya 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 population

4.2 7.7 83%

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 10,199,836.00

17,382,034.00 70%

Total number of main fixed lines (fixed lines plus fixed wireless)

380,748.00 283,546.00 -26%

Total number of mobile subscriptions 24,968,891.00

28,080,771.00 12%

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



Connectivity development

2010 Data 2011 DataChange (%)

1 Volume of international traffic (Mbps) 20,209.00 52,938.00 162.0%ñ

2 International Internet bandwidth, Mbps per 10,000 population++

4.2 ++7.7 83.3%ñ

3 Number of Computers per 100 inhabitants 2.4 2.7 13.9%ñ

4 % of households with a personal computer 6.3% 8.0% 27.0%ñ

5 Total number of Internet Subscriptions 4,716,977 6,152,687 30.4%ñ

6 Total number of internet users 10,199,836 17,382,034 70.4%ñ

7 % of population with Internet Access 0.26 0.36 40.2%ñ

8 Internet subscribers as % of total population 11.5% 14.8% 28.6%ñ

9 Total number of main fixed lines (fixed lines plus fixed wireless)

380,748 283,546 -25.5%ò

10 Total Fixed line penetration (per 100 inhabitants) 97.0% 72.0% -25.8%ò

11 Total number of mobile subscriptions 24,968,891 28,080,771 12.5%ñ

12 Total penetration of mobile services (per 100 inhabitants)

63.2% 71.3% 12.8%ñ

13 Total teledensity 64.2% 72.0% 12.2%ñ

14 Number of .Ke domain names 18,000 24,322 35.1%ñ

15 IT Spending per capita $18.5 $24.4 32.1%

ñ

++per user from 2011



++per user from 2011

Broadband demand is not constrained by cost or access 22 Price of Internet Access for 512 Kbps $22.00 $22.00 0.0% ó

23 Fixed broadband Internet access tariff ($ per month) $39.80 $37.90 -4.8%

ò24 Dial up Internet tariff ($ per Month) $29.5 $29.3 -0.7%

ò25 Number of BPO jobs 12,500 13,100 4.8%

ñ 26 Number of BPO seats 5,000 5,696 13.9%

ñ

Universities are connected to broadband services 27 Number of educational institutions connected to national

network 60 65 8.3%

ñ 28 Number of educational campuses connected to national

network 74 78 5.4%

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

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

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

ò


HighlightsKenya ICT Market Key IndicatorsHighlightsKenya ICT Market Key Indicators

International traffic grew by an impressive 162.0% between 2010 and 2011 and mainly riding on increased internet subscriptions that were mainly comprised of mobile data connections. .

The total number of households with a personal computer (PC) grew from 6.3% to 8.0%.

Internet users was recorded as 17.38 million users from 10.99 million recorded during the previous year.

Fixed lines declined to 283,546 in 2012 from 355,493 in 2011, representing a decline of 25.5% during that period.

The total number of students connected to broadband rose from 176,000 in 2010 to 250,000 in 2011 indicating an increase of 42% increase year on year.

The number of universities connected to broadband services increased from 60 in 2010 to 65 in 2011 and mainly attributed to some educational institutions that have multiple campuses getting connected to KENET.

The number of registered government domain names reduced in 2011 largely due to lack of renewal of domains mainly by local government entities (municipal and county councils). Most previously registered domains have been allowed to lapse.


Market Overview ICT Spending by Technology AreasMarket 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 SectorsMarket Overview Spending by Vertical Sectors


Kenya ICT Ecosystem


Kenya ICT EcosystemStructure – Systems IntegratorsKenya ICT EcosystemStructure – Systems Integrators

• 80% software or hardware• 20% servicesVendors

• 95% -100% software or hardware

• 0-5% servicesDistributors

• 70% hardware• 20% services• 10% software

Tier 1 Systems

Integrators


Tier 2 Systems

Integrators


Retail

Services revenue mainly from multinational companies and large accounts

Not much value addition – very few value added distributors in the local market.

Value addition a key revenue stream

Some value addition and smaller projects

Very little or no value addition.

CHANNEL REVENUE BREAKDOWN REMARKS


Kenya ICT EcosystemHighlights 1/2Kenya ICT EcosystemHighlights 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 EcosystemNational and Regional PresenceKenya ICT EcosystemNational and Regional 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.

National presence

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 EcosystemKenya as a regional HubKenya ICT EcosystemKenya 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 EcosystemChallenges facedKenya ICT EcosystemChallenges 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 EcosystemSystem Integrators’ Market OutlookKenya ICT EcosystemSystem 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


19

Devices at home & Household CompositionDevices at home & Household Composition

Type Average Number per HH

Maximum Number per HH

Desktop 0.33 2Laptop 0.52 3Television Set 1.00 3Fixed telephone line (CDMA, Fixed wireless, Dial up) 0.01 1Mobile cellular telephone/Handphone/Mobile phone 1.84 7Satellite Antenna (Satellite dish) 0.23 1Radio set 0.87 3

Base = Total Sample (n=750)

Q15. How many of each of the following types of devices do you have at home?

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)


20

Resident’s Survey HighlightsInternet Usage at homeResident’s Survey HighlightsInternet Usage at home

Base : Total Sample (750)

Base = The figure in parenthesis represents the base of the respective category

Internet Home Penetration by Location

Internet Home Penetration by SCL

Internet usage increases by SCL levels. It is highest in Nairobi (59%)

Internet usage increases by SCL levels. It is highest in Mombasa (37%)

50%50%

Q16. Do you have an Internet connection at home?

Yes No

Nai

robi

Mom

basa

Nak

uru

Kisu

mu

Eldo

ret

Thik

a

Mac

hako

s

Kaka

meg

a

Gar

issa

59% 51%34%

51%35%

68%36% 28%

67%

41% 49%66%

49%65%

32%64% 72%

33%

AB C1 C2 D E

57% 58%37%

15% 5%

43% 42%63%

85% 95%

Yes No


Broadband delivering speed of 256 kbps to less than 1 Mbps

Broadband delivering speeds from 1Mbps to less than 4Mbps

Broadband delivering speeds from 4Mbps to less than 8Mbps

Broadband delivering speeds higher than 8Mbps

Don't know

32%

27%

19%

16%

6%

21

Internet Usage at homeType & Speed of ConnectionInternet Usage at homeType & Speed of Connection

Q18. What type of Internet connection do you have at home?

Base : Internet users (210)

Q19. What is the speed of your main internet connection at home?

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

Mobile broadband / nar-rowband Connection /mo-

dem

ADSL line (dedicated line for internet (broadband)

Dial up connection (using fixed phone line connection)

Other connections

87%

4%

1%

34%


22

Internet Usage at homeInhibitors for Not Using internet at homeInternet Usage at homeInhibitors for Not Using internet at home

We don’t have PC

We can’t afford internet subscription

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

There are no internet cables / infrastructure in our neighborhood

I don’t know how to use internet

Internet connections are poor in terms of quality

63%

35%

33%

23%

11%

3%

Base : No Users of Internet (540)

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


23

Type of PC, Internet Device & Mobile Service UsedType of PC, Internet Device & Mobile Service Used

Desktop

Laptop

Media Tablet

78%

61%

14%

Desktop

Laptop

Other mobile phone / internet enabled mobile phones

Smartphone

Media Tablet

78%

60%

57%

37%

9%

Prepaid

Postpaid

Both

96%

3%

1%

Q25. What kind of PC do you use?

Base : Users of PC (493)

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

Base : Users of Internet (570)

Q60. Which kind of mobile service do you use?

Base : Users of Mobile Phone (746)

Included media tablets in Phase II


24

Purposes for Using PCPurposes for Using PC

Communication

Entertainment

Work

Other Personal purposes

Education

83%

66%

57%

54%

28%


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

2012

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.

Personal usage

Entertainment

Communication

Education

Work

71%

66%

64%

45%

36%

2011



25

Purposes for Using the Mobile PhonePurposes for Using the Mobile Phone

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

SMS

Social media

Access to Email

Chatting (IM)

MMS

98%

97%

65%

57%

52%

50%

41%

35%

18%

2012


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

Voice services

SMS

Access to social media websites

Web Browsing

Entertainment

Access to Email

PIM

Chatting

Sending MMS

97%

96%

45%

42%

37%

35%

31%

24%

15%

2011



26

Financial Transactions on the Internet and MobileType of transition, Number of online PurchasesFinancial 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?

Top up of Airtime through Mobile Money Transfer

Payments (utility & mobile bills etc) through Mobile Money Transfer

Buying of product through Mobile (Mobile Money transfer)

Selling of product through Mobile (Mobile Money transfer)

Payments of School fees through money mobile transfer

Banking (online Banking transaction)

Payments (utility & mobile bills etc) through Internet

Buying of product and services through internet

Selling of product and services through internet

96%

55%

36%

34%

23%

7%

6%

5%

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%)


27

Tasks Performed on the InternetTasks Performed on the Internet

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

Search for information

Downloading movies, images, music, watching TV or video, or listening to radio or music on-line

Getting information about goods or services

Playing or downloading video games or computer games

Reading or downloading on-line newspapers or magazines

Keeping viruses, spyware, and ad-ware off your computer

Getting information from general government organizations

Purchase or place orders goods and services

Interacting with general government organizations

75%64%

59%37%

33%33%

30%29%

26%25%

23%16%

14%8%8%

6%6%

Base : Users of Internet (570) The main purposes for using the internet are search for information (75%), communication with colelagues (64%) and

downloading (59%) exceeding by far other reasons.

Internet users 35+ yrs old perform business-oriented internet tasks (communicating with customers, scheduling appointments, etc.) more than younger users who look for more social, entertaining or educational activities online


Satisfaction With Internet ServiceSatisfaction With Internet Service

Q46. The following questions are about your satisfaction with the Internet service you use. I will ask you about various characteristics of the service, for each one please select a number from 1-7, where 1 = Very dissatisfied, and 7 = very satisfied


Cost of your Internet service

Value for money spent on your Internet service

Reliability of your Internet service

Speed of your Internet service

Customer support after sales

Overall Internet service

11%

15%

12%

18%

21%

5%

20%

24%

18%

20%

39%

24%

69%

61%

70%

62%

40%

71%

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

Base : Users of Internet (570)


General Attitudes Towards ICT General Attitudes Towards ICT

Q64. For each of the following statements, please rate your agreement level from 1 to 7

Base = Total Sample (n=750)

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%).

Learning how to use all the features of my mobile phone is important to my life now and in the future.

Learning how to use the Internet better is important to my life now and in the future.

Having PC skills is critical to my life now and in the future.

Using on-line banking services is important to my life.

Purchasing goods on-line is important to my life.

9%

7%

4%

32%

40%

13%

10%

15%

28%

29%

78%

83%

80%

41%

32%

Bottom Box (scale 1-3) : Disagree

Middle Box (scale 4) : Neutral

Top Box (scale 5-7) : Agree


Awareness of e-Government ServicesAwareness of e-Government Services

Q65. Are you aware of any government services available online? If yes, have you used any for your non-work related matters in the past 12 months?

Not aware of any services provided online

Aware of them, but have never used any online services

Aware of them and have used them in the past 12 months

47%

39%

14%



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”

Not aware of any services provided online

Aware of them, and have used any online services more than 12

months ago

Aware of them, but have not used any online services in the

past 12 months

Aware of them and have used them in the past 12 months

34%

16%

36%

14%


2011 2012


Satisfaction with e-Government Services 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.

Base = Users of e-Government Services in Past 12 Months (n=70)

Variety of e-services provided

Easiness of using it

Quickness of processing the transaction

Quality of the transaction in general

7%

19%

16%

3%

69%

27%

63%

66%

24%

54%

21%

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


Other e-Government Services Other e-Government Services

Q71. Are there any other government services you would like to see available on line?

Base = Users of e-Government Services in Past 12 Months (n=70)

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


Barriers to ICT UsageBarriers to ICT Usage

Q63. What are some of the reasons that may be limiting your use of ICT (computers and Internet)?

High costs to connect to the Internet

High costs of buying/renting computers

High costs of maintenance and repairs for computers

Risk of viruses is too high when using the Internet

Lack of required skills to use computers/ internet

Lack of trust for ICT (e.g. security/ privacy issues on the Internet)

Computers/Internet not available at home

There are no barriers at all

Technology is too complicated

Not secure to do business/ make transactions over the Internet

Internet cafés are hard to reach or find

Computers/Internet not available at work

Computers/Internet not available at school/ university

Not enough websites / content in local language

38%

35%

33%

21%

18%

18%

16%

16%

14%

9%

7%

5%

4%

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


BenchmarkingInternet user penetrationBenchmarkingInternet user penetration

KPI Total Internet user penetration

Kenya2010 22.5%2011 25.9%

YoY change 15.1%

RSA2010 14.0%2011 12.3%

YoY change -12.1%

Nigeria2010 28.3%2011 28.4%

YoY change 0.2%

Rwanda2010 12.7%2011 13.0%

YoY change 2.2%

Ukraine2010 33.3%2011 45.0%

YoY change 35%

Philipines2010 invalid data2011 invalid data

YoY change

Egypt2010 29.5%2011 26.7%

YoY change -9.4%

Morocco2010 41.4%2011 49.0%

YoY change 18.3%


BenchmarkingExtent of business internet useBenchmarkingExtent of business internet use

KPI Extent of Business Internet Use - WEF Indicator

Kenya2010 4.772011 5.0

YoY change 4.8%

RSA2010 5.142011 5.3

YoY change 3.1%

Nigeria2010 4.52011 4.5

YoY change 0.0%

Rwanda2010 1.752011 4.9

YoY change 180.0%

Ukraine2010 4.722011 5.1

YoY change 8%

Philipines2010 4.52011 5.6

YoY change 24.4%

Egypt2010 4.722011 4.9

YoY change 3.8%

Morocco2010 4.62011 4.5

YoY change -2.2%


BenchmarkingGovernment ICT Use and EfficiencyBenchmarkingGovernment ICT Use and Efficiency

KPI ICT Use and Government Efficiency - WEF Indicator

Kenya2010 4.352011 4.4

YoY change 1.1%

RSA2010 4.072011 3.9

YoY change -4.2%

Nigeria2010 3.82011 3.8

YoY change 0.0%

Rwanda2010 no data2011 5.5

YoY change

Ukraine2010 3.562011 3.6

YoY change 1%

Philipines2010 3.62011 3.7

YoY change 2.8%

Egypt2010 4.432011 3.9

YoY change -12.0%

Morocco2010 4.22011 4.0

YoY change -4.8%


BenchmarkingGovernment Online service IndexBenchmarkingGovernment Online service Index

KPI Government Online Service Index - WEF Indicator

Kenya2010 0.242011 0.2

YoY change 0.0%

RSA2010 0.312011 0.3

YoY change 0.0%

Nigeria2010 0.12011 0.1

YoY change 0.0%

Rwanda2010 0.172011 0.2

YoY change 0.0%

Ukraine2010 0.352011 0.4

YoY change 0%

Philipines2010 0.392011 0.4

YoY change 0.0%

Egypt2010 0.532011 0.5

YoY change 0.0%

Morocco2010 0.242011 0.2

YoY change 0.0%


Benchmarking Internet Users vs Connections as a % of populationBenchmarking Internet Users vs Connections as a % of population

In more developed countries the total number of connections vis a vis the number of users are evenly spread

In countries like Kenya, Nigeria and Morocco, there are lower numbers of connections but higher number of users indicating most connections are shared connections and largely comprise business connections (including publicly accessible connections like cyber cafes, education institutions).

Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Internet Users vs Connections as a % of population

Total Internet user penetrationInternet subscribers percentage of total population


Benchmarking Total Internet vs Household penetrationBenchmarking Total Internet vs Household penetration

Kenya has a higher internet penetration vis a vis South Africa but mainly bolstered by mobile internet connections though with a lower proportion of households connected owing to a declining fixed network and poor development of DSL based services.

Kenya compares much better than both Nigeria and Rwanda on both counts

Egypt has a much higher overall and household internet penetration with a huge gap of almost 25 percentage points at household level.


5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Total Internet vs Household penetration

Proportion of households with internet access

Total Internet user penetration


BenchmarkingComputer PenetrationBenchmarkingComputer Penetration

Kenya has slightly higher PC penetration rates than Nigeria and Rwanda but still very far behind South Africa and Morocco, mostly owing to lower disposable income than these countries.

Population figures for Nigeria (high) and Phillipnes (low) help skew penetration rates either way as do GDP per capita figures when thinking of disposable income and installed base of computers in households.

Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco0

1

2

3

4

5

6

7

8

9

Computers per 100 inhabitants


BenchmarkingHousehold Internet Access vs Household PC AccessBenchmarkingHousehold Internet Access vs Household PC Access

In terms of PC Access at the household level, Kenya is only better than Rwanda.

It should be noted that Nigeria as a manufacturer of PCs (Zinox brand) that are locally affordable, accounts for much higher PC penetration at household levels but negligible household internet penetration given infrastruicture issues (subamrine cables arrived way after they did in East Africa)


5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Household Internet Access vs PC

Proportion of households with internet access

Proportion of households with a computer


BenchmarkingBusiness Internet UsageBenchmarkingBusiness Internet Usage

In terms of business usage of the internet, Kenya is nearly on par with more developed countries like Egypt and Morocco and slightly ahead of Nigeria

Kenya

RSA

Nigeria

Rwanda

Ukraine

Philipines

Egypt

Morocco

0 1 2 3 4 5 6

Business Internet Usage

Extent of Business Internet Use - WEF Indicator


BenchmarkingBroadband Access TariffsBenchmarkingBroadband 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.

Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

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Kenya ICT Market Survey - Julisha II

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Transcript of Kenya ICT Market Survey - Julisha II