NAIROBI, Oct. 22 (Xinhua) -- Kenya's digital economy will sustain growth momentum in the near future, driven by policy and regulatory incentives, youth-led innovations, and increased capital flows, according to a report released Tuesday in Nairobi, the Kenyan capital.
Compiled by the Global System for Mobile Communications Association (GSMA) and partners, the report titled "Driving Digital Transformation of the Economy in Kenya" reveals that the digital economy will contribute 662 billion Kenyan shillings (about 5.13 billion U.S. dollars) to the country's gross domestic product by 2028.
Speaking at the report's launch, Margaret Ndung'u, cabinet secretary for the Ministry of Information, Communications and the Digital Economy, said digitization holds the key to sustained growth, job creation, quality service delivery, and improved revenue to the exchequer.
According to Ndung'u, Kenya has emerged as a regional hub in mobile connectivity and mobile financial services, driving economic growth through the inclusion of the previously unbanked population.
She added that through leveraging digital tools, the government has streamlined agriculture value chains and revenue collection alongside the provision of essential services like health and education.
The report says digitalization could create an additional 300,000 jobs in the Kenyan economy and increase tax revenues by 1.16 billion dollars, helping the country realize its growth and transformation agenda.
David Mugonyi, director general of the Communications Authority of Kenya, the regulatory authority for the information and communications technology (ICT) industry, noted that the ICT industry has grown rapidly, thanks to the enactment of supportive policies and regulations.
By the end of June, Kenya had an estimated 68.9 million mobile subscribers, translating to a mobile penetration rate of 133.7 percent, while mobile money subscriptions stood at 39.8 million, equivalent to a 77.3 percent penetration rate, Mugonyi said, adding that in the same period, 66.1 million mobile devices were connected to mobile networks, equivalent to a penetration rate of 128.3 percent, with the penetration rates for smartphones and feature phones reaching 68.3 and 59.9 percent, respectively.
To sustain the growth of the digital economy, Mugonyi said the government and industry partners have joined forces to address the dual challenges of device affordability and the skills gap.
Angela Wamola, head of sub-Saharan Africa at the GSMA, noted that to fully reap the benefits of the digital economy, Kenya needs a bold policy shift combined with investments in supportive infrastructure. ■