Kenya ICT Board Monitoring and Evaluation Survey Results

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Kenya ICT Board Monitoring and Evaluation Survey Results

22ND 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) ICT Ecosystem Overview - Vendor Survey (market Structure, challenges,

opportunities, Vendors performance, outlook) International Benchmarking ICT Skills Survey Highlights Residential Usage and Penetration Highlights Business Survey Highlights Recommendations

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

Project Background


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


Kenya ICT Market Overview


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%


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


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%


Kenya ICT Ecosystem


Kenya ICT EcosystemStructure


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.


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.


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%


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.


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.


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.


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.


Benchmarking Kenya


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


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.


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


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


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)


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


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


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


IT Skills Survey


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



IT Administrator

Software Developer


System Engineer (Computer Networking/IT)

IT Consultant

IT Team Leader

IT Project Manager

Web Designer


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


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


Web Designer

IT Project Manager

IT Team Leader

IT Consultant

System Engineer


Software Developer

IT Administrator


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


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


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%


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


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


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%


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.


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


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



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


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?



Residents Survey Highlights


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.


‘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


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


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.


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


Residents Survey Highlights


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%)


46

Internet 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

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


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)


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


48

Purposes for Using PC


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.


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


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


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


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%)


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?


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%)


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%



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


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



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


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%


Nairobi (253) Mombasa (179) Eldoret (98) Kisumu (120) Nyeri (100)

46% 45% 43%

61%45%


41% 46% 45%

24%32%



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%)


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%


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%


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%



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.


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


Business Survey Highlights


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%



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%



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


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


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


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


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


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


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


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


Thank You

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Kenya ICT Board Monitoring and Evaluation Survey Results

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