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Kenya ICT Board Monitoring and Evaluation Survey Results. 22 ND November 2011. Agenda. Project Background Market Overview (Key Indicators 2010 , Kenya IT Market Value (US$M) Forecast 2010-2015, Kenya IT spend by Vertical segments) - PowerPoint PPT Presentation
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Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Kenya ICT Board Monitoring and Evaluation Survey Results
22ND November 2011
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Agenda
Project Background Market Overview (Key Indicators 2010, Kenya IT Market Value (US$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
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Project Background
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Background
Survey Objectives
Understanding the Kenyan ICT Ecosystem and trends in the market.
Sizing the ICT Market and its sub segments (hardware, software, services, etc) in Kenya.
Compiling a baseline of key ICT KPIs
Benchmarking key Kenya ICT indicators against six countries
Understanding the ICT Skills availability, demand and gaps
Survey Highlights
Aims to provide ground-breaking primary research that encompasses numerous market sub -segments and different stakeholders
It will leverage on existing secondary market research in order to consolidate existing discrete market information
It will have a repeat cycle to gauge the progress and impact of KICTB and other stakeholders’ initiatives.
The survey is consultative as well – where multiple stakeholders are both respondents (i.e. What are your issues?) and also beneficiaries (i.e. What to do?)
Timely – to augment development of existing KICTB projects – Pasha centres (rural access) , Tandaa (digital content), Wezesha (asset financing) as well as other government ICT initiatives
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Kenya ICT Market Overview
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Market OverviewKenya ICT Market Key Indicators
Volume of international traffic (Mbps) 20,209.56 Mbps
International Internet bandwidth, Mbps per 10,000 population 4.2
Number of Computers per 100 inhabitants 2.4
% of households with a personal computer 6.3%
Total number of Internet Subscriptions 4,716,977
Total 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) 380,748
Total number of mobile subscriptions 24,968,891
Number 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%
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Market Overview ICT Spending by Technology Areas
2010 2011 2012 2013 2014 2015$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
Kenya ICT market size 2010 & forecast to 2015
Axis Title
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Market Overview Spending by Vertical Sectors
Agriculture, Construction, and Mining3%
Financial13%
Business Services3%
Communications21%
Consumer15%Discrete Manufacturing
2%
Education3%
Government15%
Healthcare2%
Other4%
Process Manufacturing7%
Retail4%
Transport4% Utilities
4%Wholesale
2%
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Kenya ICT Ecosystem
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Kenya ICT EcosystemStructure
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Kenya ICT EcosystemHighlights 1/2 There 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) and Dealers who combined account for the bulk of ICT Business in Kenya estimated at nearly 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 different market 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 and home user segment. These are players who typically do not have a country wide presence and would largely be found operating at a provincial level or even a national 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 the government and education segments, where procurement of goods or services may require a local player.
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Kenya ICT EcosystemHighlights 2/2 The Tier I players largely comprise companies with both a national and regional
presence, and in most instances are majority foreign owned companies spinning off regional 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, such companies have been able to target the market segment that includes multinational companies (MNCs), large enterprises and government, where such credentials bear heavily 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. Thus multiple brand handling by the channels is the norm even for channel partners who were "loyal" to certain vendors.
The channel is maturing fast with thinning out of grey shipments. Telcos and telco channels are now selling PCs.
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Kenya ICT EcosystemHighlights 2/2 Vendors 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 transforming the market, stimulating investment, ICT uptake and bolstering confidence in the overall 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%
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Kenya ICT EcosystemKenya as a regional Hub
Among the countries Kenya based vendors have reach into from
their Kenyan hub include:
Uganda, Tanzania, Rwanda, Burundi,
Ethiopia and Southern Sudan.
• Kenya is without doubt the regional hub for most vendors with a regional reach spanning between three to six countries on average for vendors.
• Aside from being a hub, it is also a stepping stone for these vendors to set up operations in neighbouring countries but still maintaining somewhat centralized marketing, inventory and support functions at regional levels.
• Inherent in this structure are various opportunities including training, skills transfer, overall higher employment, technology leadership and increased investment.
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Kenya ICT EcosystemChallenges facedChallenges Currency fluctuation affecting imports Overall 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.
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Market Opportunities
Skills 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, enforcement and standards). The success experienced by counterfeiters illustrates there is good 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. Channel partners can develop their own existing staff to meet some of these positions and leave the vendor to have a basic presence - a sort of shift down the tier and in line with the earlier stated objective to deepen intimacy with customers and strengthen the channel.
Overall growth in the IT market will continue to stimulate growth in other areas.
Enhance the platform for increasing regional reach.
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Kenya ICT EcosystemVendors’ Market Outlook Investing in specific ICT Skills like mobile applications development and setting up
innovation 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
enhancing presence 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.
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Benchmarking Kenya
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Benchmarking 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
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Benchmarking 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 between Kenya of almost 25 percentage points at household level.
Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco0.0%
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 accessTotal Internet user penetration
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BenchmarkingComputer 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.
Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco0
1
2
3
4
5
6
7
8
9
Computers per 100 inhabitants
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BenchmarkingHousehold 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 infrastructure issues (submarine cables arrived way after they did in East Africa)
Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
Household Internet Access vs PC
Proportion of households with internet accessProportion of households with a computer
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BenchmarkingBusiness 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
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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.
Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
Broadband Access Tariffs
Internet Access Tariff - Broadband
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IT Skills Survey
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IT Skills Survey Highlights IT 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.
IT Manager / Director
IT Administrator
Software Developer
Application Systems Analyst
System Engineer (Computer Networking/IT)
IT Consultant
IT Team Leader
IT Project Manager
Web Designer
IT Support (help desk)
-5% 0% 5% 10% 15% 20% 25% 30%
11%
11%
9%
13%
13%
5%
5%
4%
5%
27%
Source: IDC IT Skills Model
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IT Manager / Director
IT Administrator
Software Developer
Application Systems Analyst
System Engineer (Computer Networking/IT)
IT Consultant
IT Team Leader
IT Project Manager
Web Designer
IT Support (help desk)
0 5,000 10,000
2,814
3,002
2,270
3,396
3,415
1,276
1,370
1,051
1,238
7,017
511
733
1,600
1,078
983
675
482
604
666
2,304
2010 Employment 2011-13 Demand
IT Skills Survey Highlights Demand 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
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IT Skills Survey Highlights Availability 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
IT Support (help desk)
Web Designer
IT Project Manager
IT Team Leader
IT Consultant
System Engineer
Application Systems Analyst
Software Developer
IT Administrator
IT Manager / Director
0% 10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Very Difficult to find Difficult to find Neither Easy to find Very easy to find
% of Companies
N = 158Source: Business Survey
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IT Skills Survey Highlights Demand/Availability Matrix for IT Professions
New jobs growth between 2011 and 2013
% o
f com
pani
es re
porte
d ve
ry d
iffic
ult o
r diff
icul
t to
find
Monitor
Consider Focus
Ava
ilabi
lity
Diff
icul
tE
asy
DemandLow High
Software developer
Application Systems Analyst
IT Project Manager
System Engineer
IT Manager/ Director
IT Consultant
Web Designer
IT Support
IT Administrator
Team Leader
0.00% 20.00% 40.00% 60.00% 80.00%0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
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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%.
Networking skills
Security skills
SW development skills
IT Project management skills
Mobile technology skills
Database skills
Data storage skills
Enterprise/business application skills
Internet-related skills
HW skills
IT Administration skills
0 5,000 10,000 15,000 20,000 25,000
11,997
7,961
5,363
4,920
4,920
10,154
10,007
6,782
19,294
17,783
10,836
2,175
1,566
1,861
1,788
1,308
1,824
1,714
1,087
2,359
1,695
1,290
2010 Employment 2011-13 DemandSource: IDC IT Skills Model
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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.
IT Administration skills
HW skills
Internet-related skills
Enterprise/business applica-tion skills
Data storage skills
Database skills
Mobile technology skills
IT Project management skills
Software development/deployment skills
Security skills
Networking skills
0% 10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Very Difficult to find Difficult to find Neither Easy to find Very easy to find
% of Companies
N = 158Source: Business Survey
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IT Skills Survey Highlights Demand/Availability Matrix for IT Skills
New jobs growth between 2011 and 2013
DemandLow High
% o
f com
pani
es re
porte
d ve
ry d
iffic
ult o
r diff
icul
t to
find
Ava
ilabi
lity
Diff
icul
tE
asy
Monitor
Consider Focus
Security
Software DevelopmentEnterprise/Business
Applications
Mobile Technologies
Databases
Networking
HW
Internet
IT Adm.
Data Storage
IT Project Management
5% 10% 15% 20% 25% 30% 35% 40%0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
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IT Skills Survey Highlights Supply 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.
Skills in graduatesLACKING STRONG IN
Software skills
Structured & Innovative thinking
Team skills
Hardware skills
Problem solving
Project management skills
Software skills and Problem solving skills rated the highest while hardware and project
management skills rated much lower.
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IT Skills Survey Highlights Demand Side : Skills lacking in graduates
Problem Solving
Project Management/Implemen-tation
Innovative thinking
Structured Thinking
SW Skills
Ability to work in teams
HW Skills
0% 20% 40% 60%
39%
41%
41%
33%
27%
18%
15%
% of Companies
Q: What type of skills are the graduates particularly lacking? When probed on the types of skills usually
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
internships
Source: Business Survey
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IT Skills Survey Highlights Overall 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.Lack of IT skills in the
country has a significant effect on IT operations in
our organization
Lack of IT skills in the country has a significant effect on business opera-
tions and performance
We contracted/will have to contract external
providers of IT services due to the lack of internal
IT skills
We are satisfied with the quality of the IT profes-
sionals from educational institutions in Kenya
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Strongly Disagree Disagree Neither Agree Strongly Agree
% of Companies
Source: Business Survey
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IT Skills Survey Highlights Inhibitors – 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
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IT Skills Survey Highlights Inhibitors - Businesses view
Insufficient government initiatives in this area
Low number of IT-skilled graduates
Kenya is not an attractive location for foreign IT professionals
The ICT field is not attractive for the younger generation
Complicated visa & travel regulation
Low level of English language proficiency
0% 20% 40% 60% 80% 100%
82%
22%
17%
13%
8%
3%
% of Companies
Q. In your opinion, what are the key factors hampering the availability of IT skilled professionals in the country?
Source: Business Survey
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Residents Survey Highlights
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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.
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‘Qualified’ Supply
Training institutio
ns
Middle level
colleges
Public and
Private universit
ies IT Professionals from
abroad
IT Skills Survey Highlights Gap analysis framework
‘Unqualified’ supply or Skills mismatch
Students who go abroad or pursue higher studies
‘Brain drain’ especially at higher Skill levels
Gap
Demand
Attrition
Training/ Re-training
Move to management tracks
Gaps filled by expats for short-term project duration
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IT Skills Survey Highlights Dimensions of the gap in IT skills
Gap in IT professionals
Higher-level gaps• Shortage of experienced IT
personnel• Poaching and moving
abroad i.e. ‘brain drain’ reported; also technical staff moving to management tracks
• Experienced professionals from abroad not coming in
Technical gaps• Enterprise/business
application skills, software development, mobile applications
• IBM and SAP related technology skills
Graduate-level skill gaps• Project management • Problem solving• Innovative thinking• Gap between theoretical
and practical skills; insistence of some experience from IT firms
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
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IT Skills Survey Highlights Overall Recommendation areas and initiatives
Promote IT as a career
• Attract more people (especially youth and females) via promotional campaigns
• Attractive industry compensation standards
Review ICT curricula
• More regulation, more rigor and standardization
• Public-private partnership body to ensure curriculum standardization
• Online mechanism with Assessment of IT skills online
Financing & Support
• Specialized funding for ICT courses• ICT incubators with educational
institutions• Tax relief & special funds for
technology focus areas
Harmonize and monitor supply & demand• Definitions and quantification of
demand roles and types of skills• Policy on course design and criteria
to fulfil these roles• Open up data to relevant
stakeholders
Improve connectivity
• Provide last-mile connectivity through pricing incentives
• Help middle and lower tiers of educational institutions to get connected
Focus on special interest areas
• Local context and relevance e.g. ICT in agriculture
• Innovation areas similar to m-pesa• Incentivize reverse brain drain i.e.
Kenyans based abroad
Integrate ICT in education
• Incorporate more ICT elements at secondary level
• More attachment programs and internships with technology companies to learn and apply
Establish specialized training programs for graduates• Focus on recognized skill gaps such
as business skills and ‘soft’ skills• Partner with training/ICT companies;
encourage investment to ensure training availability
Expand capacities of universities and colleges• Provide infrastructure and funding
support• Address qualified teaching shortage;
Evaluate & incentivize the supply
Government 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.
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IT Skills Survey Highlights Projects prioritization
Ease of implementation
Impa
ct
HighLow
Low
Hig
h
ImplementConsider
Promote IT as a career
Integrate ICT in education
Improve connectivity
Financing & Support
Harmonize and monitor supply & demand
Expand capacities of universities and colleges
Review university curricula
Establish specialized programs for graduates
Focus on special interest areas
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 44
Residents Survey Highlights
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Mombasa (179)
Nairobi (253)
Kisumu (120)
Nyeri (100) Eldoret (98)
37% 26% 23% 23% 14%
63% 74% 77% 77% 86%26%
74%
Q16. Do you have an Internet connection at home?
Yes No
45
Resident’s Survey HighlightsInternet Usage at home
Base : Total Sample (750)
Base = The figure in parenthesis represents the base of the respective category
AB (238) C1 (328) C2 (161) D (23)
47%21% 9% 4%
53%79% 91% 96%
Yes No
Internet Home Penetration by Location
Internet Home Penetration by SCL
26% of the surveyed HH use internet
Internet usage increases by SCL levels. It is highest in Mombasa (37%)
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46
Internet Usage at homeInhibitors for Not Using internet at home
Base = The figure in parenthesis represents the base of the respective category
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
Others
Nothing
58%
28%
17%
13%
11%
3%
1%
1%
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
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47
Kind of PC, Internet Device & Mobile Service Used
Desktop
Both
Laptop
58%
22%
20%
Other mobile phone / internet enabled mobile phones
Desktop
Laptop
Smartphone
Digital TV
80%
71%
34%
15%
1%
Prepaid
Postpaid
Both
97%
1%
1%
Q25. What kind of PC do you use?
Base : Users of PC (519)
Q31. Which of the following devices have you used to access the Internet in the past 12 months?
Base : Users of Internet (592)
Q60. Which kind of mobile service do you use?
Base : Users of Mobile Phone (746)
Base = The figure in parenthesis represents the base of the respective category
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
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48
Purposes for Using PC
Base = The figure in parenthesis represents the base of the respective category
Personal usage
Entertainment
Communication
Education
Work
71%
66%
64%
45%
36%
Base : Users of PC (519)
Q27. What is your primary purpose for using the PC?
Detailed by Age Detailed by Gender
15 – 24 (219)
25-34 (163)
35-44 (67)
45+ (70)
Male (313)
Female (206)
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%
Overall
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.
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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%
49
Purposes for Using the Mobile Phone
Base = The figure in parenthesis represents the base of the respective category
Q59. Which of the following services do you actively use on your mobile device?Detailed by Age Detailed by Gender
15 – 24 (219)
25-34 (163)
35-44 (67)
45+ (70)
Male (313)
Female (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%
Overall
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
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50
Confidence in Using the PCOverall
Base = Users of PC (n=519)
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%)
Text processing using a program such as Word
Creating a presentation with text and images, such as PowerPoint
Working with spreadsheets to create charts and tables such as Excel
Connecting and installing new devices, e.g. a printer or a modem or a new software
Writing a computer program using a specialized programming language
Detecting and solving computer problems
8%
17%
19%
21%
37%
42%
24%
22%
24%
22%
18%
16%
68%
57%
55%
51%
36%
31%
1%
3%
3%
4%
8%
11%
Bottom Box (Scale 1-3): Not Confident Middle Box (Scale 4): Neutral Top Box (Scale 5-7): Confident Don't Know
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51
Confidence in Using the InternetOverall
Base = Users of Internet (n=592)
Q47b. How confident are you in using…
Creating a Web page/a blog
Using an Internet search engine
Using email to communicate with others
Finding downloading, and installing software
Posting messages to chat rooms, newsgroups, or online discussion forums
6%
7%
13%
26%
39%
12%
14%
15%
17%
16%
80%
79%
65%
49%
29%
2%
1%
7%
9%
17%
Bottom Box (Scale 1-3): Not Confident Middle Box (Scale 4): Neutral Top Box (Scale 5-7): Confident Don't Know
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%)
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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 = The figure in parenthesis represents the base of the respective category
Top up of Airtime through Mobile Money Transfer
Payments (utility & mobile bills etc) through Mobile Money Transfer
Payments of School fees through money mobile transfer
Buying of product through Mobile (Mobile Money transfer)
Sending money to someone
Receiving money from someone
Selling of product through Mobile (Mobile Money transfer)
Online Banking transaction
Payments (utility & mobile bills etc) through Internet
Buying of product and services through internet
Selling of product and services through internet
86%
38%
16%
14%
9%
9%
7%
4%
3%
2%
0%
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%)
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53
Tasks Performed on the Internet
Q34. Do you use the Internet to perform any of the following tasks?
Communicate with colleaguesSearch for information
Education and learning activities Playing or downloading video games or computer games
Reading or downloading on-line newspapers or magazinesGetting information about goods or services - Internet usage to perform these tasks
Using peer-to-peer file sharing for exchanging documents, movies, music, etc.Finding, downloading, and installing software
Communicate with customers/citizens/ residentsGetting information from general government organizations
Keeping viruses, spyware, and ad-ware off your computerSchedule business appointments
Interacting with general government organizationsChecking a receipt of payments
Purchase or place orders goods and servicesOnline banking
77%68%
40%29%28%27%
22%22%21%
12%12%
9%7%5%5%3%
Detailed by Age Detailed by Gender15 - 24 (238)
25-34 (182)
35-44 (88)
45+ (84)
Male (346)
Female (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 = The figure in parenthesis represents the base of the respective category
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
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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
Base : Users of Internet (592)
Base = The figure in parenthesis represents the base of the respective category
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%)
Overall Internet service
Customer support after sales
Speed of your Internet service
Cost of your Internet service
Reliability of your Internet service
Value for money spent on your Internet service
13%
5%
9%
14%
15%
19%
23%
21%
21%
21%
24%
24%
61%
68%
66%
63%
58%
41%
3%
6%
3%
3%
3%
17%
Dissatisfied (Scale 1-3) Neutral (Scale 4) Satisfiied (Scale 5-7) Don't KnoW
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Awareness of e-Government Services
Q65. Are you aware of any government services available online? If yes, have you used any for your non-work related matters in the past 12 months?
Not aware of any services provided online
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%
Base : Total Sample (750)
Nairobi (253) Mombasa (179) Eldoret (98) Kisumu (120) Nyeri (100)
46% 45% 43%
61%45%
Nairobi (253) Mombasa (179) Eldoret (98) Kisumu (120) Nyeri (100)
41% 46% 45%
24%32%
Base = The figure in parenthesis represents the base of the respective category
Nairobi (253) Mombasa (179) Eldoret (98) Kisumu (120) Nyeri (100)
13% 9% 12% 15%23%
Overall awareness of e-government services is significant (53%). But their actual usage is low (23%), concentrated especially in Nyeri (23%)
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Type of e-Government Services Used in Past 12 Months
Q66. Which of the following e-government services have you used in the past 12 months for none-work related matters?
Base = Users of e-Government Services in Past 12 Months (n=103)
Exam Results and Candidate selection
Apply for Public Service Jobs
HELB Loan Repayment status
Submit Tax Returns online
Customs Services online
Track status of ID and Passport
Business licensing e-registry
Report Corruption online
68%
39%
25%
19%
15%
13%
9%
6%
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Other e-Government Services
Q68. 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=103)
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%
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Barriers to ICT Usage
Q63. What are some of the reasons that may be limiting your use of ICT (computers and Internet)?
Computers/Internet not available at homeHigh costs of buying/renting computers
High costs to connect to the InternetHigh costs of maintenance and repairs for computers
Technology is too complicatedLack of required skills to use computers/ internet
Risk of viruses is too high when using the InternetComputers/Internet not available at work
Lack of trust for ICT (e.g. security/ privacy issues on the Internet)Internet cafés are hard to reach or find
Not secure to do business/ make transactions over the InternetNot enough websites / content in local language
Computers/Internet not available at school/ universityOthers
There are no barriers at all
40%36%
31%25%
19%19%
15%10%10%
7%7%
5%3%3%
16%
Detailed by LocationNairobi (253)
Mombasa (179)
Eldoret (98)
Kisumu (120)
Nyeri (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 = The figure in parenthesis represents the base of the respective category
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.
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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
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Business Survey Highlights
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Business Digital Presence
Which of the following does your organization have at present?
Website
e-Newsletter
Online advertising/banners
Profile on social networking websites
Blog
Sponsored presence/listing on other websites
Others
Nothing
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
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Business Digital Presence
Constraints for internet usage
Internal ICT infrastructure
18.13%
Internet prices20.21%
Internet availability/cover-
age18.65%
Internet not necessary or relevant to activities
5.70%
Quality of Service27.98%
Other6.74%
Nothing2.07%
Don't Know0.52%
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Business Digital Presence
Total number of full time employees that have access or use shared / dedicated PC
Small (30-99 employees)
Medium (100-499 employees)
Large (500+ employees)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Less than 3030-49 employees50 - 99 employees100-499 employees500-999 employees1000-4999 employeesMore than 5000 employees
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Awareness and Usage of e-government services
Submit Tax Returns online - E-government services used for work purposes
Customs Services online
Report Corruption online
Business licensing e-registry
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Not aware Aware but have not used Used more than a year back Used in last year
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Satisfaction with e-government services
Satisfaction with different e-government services offered
Types of e-services available i.e. variety
Quality of e-service i.e. accuracy, response time, etc.
Availability i.e. uptime
Security
Overall
0% 20% 40% 60% 80% 100% 120%
Very Dissatisfied Dissatisfied Neutral Satisfied Very Satisfied
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Recommendations IT Skills Gaps
Macro Area Details Action Broad Recommendations
IT Skills
Increase output of number of skilled staff
Focus
Awareness programmes at education institutions on: business needs vis a vis courses taken; type of skills in high demand for the next 3-5 years current MIXTURE of skills needed attract the youth via promotional campaigns Include middle & lower tiers of educational institutions to get connected
Enhance quality of
skills
Focus
Bridging programmes to involve academia, graduates and ICT Business leadersCurriculum refresh and plan to do this regularlyInclusion of basic soft skills courses as part of the curriculum Establishment of Industry Standards, Accreditation and Ethics bodySpecialized funding for ICT coursesPartner with training/ICT companies and ensure training availability
Protect local jobs & stem brain drain Consider
Mechanism to balance the need for expat labour vs skills transfer valueIncentivize Diaspora to reverse brain drainMore attachment programs and internships with technology companies to learn and apply
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Recommendations Residential Usage
Macro Area Details Action Broad Recommendations
Residential Usage
increase e-govt services
awarenessFocus Awareness programmes on services currently offered and follow
up on suggested online government services
increase e-govt services usage Focus
Leverage mobile operators to update citizens on government services vis SMS (subsidized cost for government for bulk SMS). Deploy relevant USSD driven services for citizens
ICT Adoption Consider
Solicit feedback on content of interest, esp. from non-usersCreate awareness on other content and services Content - review feedback on content most used and share with beneficiaries of digital content funds to take action/innovate/respondClose collaboration with media to pursue the internet as a channel for delivery.Address costs - See macro item COST belowAccess - see macro item INFRASTRUCTURE and COST below
Cost of services/Devices Focus
Prioritized subsidies of public access centers after evaluationProvide infrastructure support and services subsidies Re-animate local assembly initiatives through vendor PPP and with political will
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Recommendations Business Usage and CostsMacro Area Details Action
Broad Recommendations
Busines
s Usage
e-govt services
awarenessFocus
Awareness creation on existing content and servicesLeverage on high internet adoption to interact with businesses more via a various databases (e.g. customs, taxes, registry, immigration etc)
e-govt services usage
Focus Roll out more services and solicit feedback on what is needed
Skilled Staff Monitor See SKILLS macro
ICT Adoption Monitor
Cost of services and Quality of Services - need to sensitize business users of their rights in collaboration with the sector regulator. Collaborative campaigns.
Cost
Internet Services Consider Further subsidize public access areas, secondary schoolsPC Costs Consider Revive local assembly initiatives (e.g. Nigeria with Zinox)Mobile Device Costs
Consider Partnerships with vendors of low cost devices, tap into local application community
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Recommendations Channel & InfrastructureMacro Area Details Action Broad Recommendations
Channel
Vendor confidence & investment Monitor See Skills Macro Above
Foreign Investment
Focus
See SKILLS Macro aboveFocused marketing & local promotional events that explicitly illustrate strengths Nurture Tier 2 players as possible partners through capacity building, seed funding, preferential treatment in government procurement
Tier 1 VAR Monitor
Tier 2 VARFocus
Develop plans to help elevate Tier II players into Tier I players Business Incubation Initiatives Capacity building outside urban areas and create employment
Infrastructure
Last Mile Access Consider
Pursue CCK about USF plans and enjoin KITCB in discussions on ICT Access GapsCollaborate with CCK to sensitise operators on USF
Backhaul to remote areas
Develop a PPP framework & depart from ad hoc, covertly commercially oriented PPPs that lack synergies and leveraging value. Consider wireless/satellite technology elements in national infrastructure plans for remote areas to mix with other technologies for last mile access
Power
Offer subsidies (and reward schemes) to operators with renewable energy focus or innovation that address power issues
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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
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Thank You