Julisha 2520survey 2520results 25202011

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 20102015, 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
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
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
Benchmarking key Kenya ICT indicators against six countries

Understanding the ICT Skills availability, demand and gaps
Kenya ICT Market Overview
Market Overview Kenya ICT Market Key Indicators

Volume of international traffic (Mbps) International Internet bandwidth, Mbps per 10,000 population Number of Computers per 100 inhabitants % of households with a personal computer Total number of Internet Subscriptions 20,209.56 Mbps 4.2 2.4 6.3% 4,716,977
Total number of internet users % of population with Internet Access

Internet subscribers as % of total population Total number of main fixed lines (fixed lines plus fixed wireless) Total number of mobile subscriptions Number of .Ke domain names % of organizations with a website % of full time employees who use internet for work at least once a week
10,199,836 25.9%
11.5% 380,748 24,968,891 18,000.00 90.0% 52.14%
6
Market Overview ICT Spending by Technology Areas

Kenya ICT market size 2010 & forecast to 2015
$1,800
$1,600 $1,400 $1,200 Axis Title $1,000 $800 $600 $400 $200
$0
Services total Packaged software total Hardware total
2010 91.20 69.12 586.40
2011 107.65 80.06 681.01
2012 130.04 88.91 829.25
2013 153.52 101.72 955.94
2014 180.00 116.92 1,078.92
2015 209.04 132.40 1,192.11
Market Overview Spending by Vertical Sectors

Transport 3% Retail 4% Process Manufacturing 7% Other 4% Healthcare 2% Government 15% Communications 20%
Utilities 4%
Wholesale 2%
Agriculture, Construction, and Mining 3% Financial 13%
Business Services 3%
Education 3% Discrete Manufacturing 2%
Consumer 15%
Kenya ICT Ecosystem
Kenya ICT Ecosystem Structure
10
Kenya ICT Ecosystem Highlights 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.
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 11

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.
12

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 2550%
13
Kenya ICT Ecosystem Kenya as a regional Hub

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.
Among the countries Kenya based vendors have reach into from their Kenyan hub include: Uganda, Tanzania, Rwanda, Burundi, Ethiopia and Southern Sudan.
14
Kenya ICT Ecosystem Challenges faced

Challenges 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.
15
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 Ecosystem Vendors 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
18
Benchmarking
Internet Users vs Connections as a % of population
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).
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco
Internet subscribers percentage of total population Total Internet user penetration
19
Benchmarking
Total Internet vs Household penetration
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.
45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco Proportion of households with internet access Total Internet user penetration
20
Benchmarking
Computer Penetration
Computers per 100 inhabitants
9
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.
8 7 6 5 4 3 2 1 0 Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco
21
Benchmarking
Household Internet Access vs Household PC Access
Household Internet Access vs PC
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)
35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
Proportion of households with internet access Proportion of households with a computer
22
Benchmarking
Business Internet Usage
Business Internet Usage
Morocco Egypt Philipines Ukraine Rwanda Nigeria RSA Kenya 0 1 2 3 4 5 6
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
Extent of Business Internet Use - WEF Indicator
23
Benchmarking
Broadband Access Tariffs
Broadband 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.
$120.00
$100.00
$80.00
$60.00
$40.00
$20.00
$0.00 Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco
Internet Access Tariff - Broadband
24
IT Skills Survey
25
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 developmentrelated professionals.
IT Support (help desk)
27%
IT Manager / Director IT Administrator Software Developer Application Systems Analyst System Engineer (Computer Networking/IT)
9%
11%
11%
13% 13% 5% 5% 4% 5%
IT Consultant
IT Team Leader IT Project Manager Web Designer
0%
5%
10%
15%
20%
25%
30%
Source: IDC IT Skills Model

Demand Prediction by Professions
IT Manager / Director 2,814 511
Roughly 9600 IT professionals are expected to be added to the Kenyan IT workforce. The demand for individual IT
IT Administrator
3,002
733
Software Developer
2,270
1,600
Application Systems Analyst System Engineer (Computer Networking/IT) IT Consultant
3,396
1,078
professions differs by profession.

Software Developers (at 70%
3,415 675
983
1,276
growth) and Project Managers (at 57% growth) are the professions
IT Team Leader
1,370
482
expected to grow the fastest over

the period 2011-2013.
IT Project Manager 1,051
604
Web Designer 1,238
666
IT Support (help desk)
7,017
2,304
0
2010 Employment Source: IDC IT Skills Model Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
5,000
2011-13 Demand
10,000

Availability of IT Professionals
IT Manager / Director
Application Software
Systems Developers
Analysts are the
and IT
IT Administrator Software Developer Application Systems Analyst System Engineer IT Consultant IT Team Leader IT Project Manager Web Designer IT Support (help desk)
0% 20% 40% 60% 80% 100%
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.
% of Companies
Difficult to find Neither Easy to find Source: IDC IT Skills Research N = 158 Source: Business Survey Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Very Difficult to find Very easy to find

Demand/Availability Matrix for IT Professions
50%
% of companies reported very difficult or difficult to find
45%
Consider
Difficult
40% 35% 30% 25% 20% 15%
Application Systems Analyst
Focus
Software developer
System Engineer
Availability
IT Manager/ Director
IT Consultant
IT Project Manager Web Designer
Team Leader
10% 5%
IT Administrator
Monitor
0% 0.00%
IT Support
20.00% 40.00% 60.00% 80.00%
Low
Demand
New jobs growth between 2011 and 2013
High

Demand Prediction by IT Skills
Networking skills 11,997 2,175
The demand for individual IT professions differs. The most
Security skills
7,961
1,566 1,861
SW development skills
5,363
growing demand will be seen for

IT Project Management Skills
IT Project management skills
4,920 4,920
1,788
(136%) and Software development skills (135%). IT Administration and HW skills are projected to grow at the lowest rate less than 12%.
Mobile technology skills
1,308
Database skills
10,154
1,824 1,714
Data storage skills
10,007
Enterprise/business application skills
6,782
1,087 19,294 2,359
Internet-related skills
HW skills
17,783
1,695
IT Administration skills
10,836
1,290
0
Source: IDC IT Skills Model
5,000
10,000
15,000
20,000
25,000
2010 Employment
2011-13 Demand

Availability of IT Skills
Networking skills
Software
development/deployment
&
Security skills Software development/deployment IT Project management skills
Enterprise/business application skills are least available for approximately 30% of interviewed organizations, these professions
Mobile technology skills
are very difficult or difficult to find.

Database skills
Project management, security and mobile technology skills were also reported as difficult to find. Internet-related & Networking skills are available and easy to find.
Data storage skills Enterprise/business application skills Internet-related skills HW skills IT Administration skills
0% 20% 40% 60% 80% 100%
% of Companies
Very Difficult to find Difficult to find Neither Easy to find Very easy to find
Source: Business Survey Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
N = 158

Demand/Availability Matrix for IT Skills
45% % of companies reported very difficult or difficult to find 40%
Consider
Enterprise/Business Applications Software Development
Focus
Difficult
35% 30% 25% 20% 15% 10% 5% 0%
Security
Data Storage Databases HW IT Adm. Internet Networking Mobile Technologies IT Project Management
Availability
Monitor
0% 5% 10% 15% 20% 25% 30% 35% 40%
Low
Demand
New jobs growth between 2011 and 2013
High

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. Hardware skills Problem solving Software skills
LACKING
Skills in graduates
STRONG IN
Project management skills
Structured & Innovative thinking
Team skills
Software skills and Problem solving skills rated the highest while hardware and project management skills rated much lower.

Demand Side : Skills lacking in graduates
When probed on the types of skills usually lacking in graduates, thinking, companies solving cited and
Problem Solving
Q: What type of skills are the graduates particularly lacking?

39%
Innovative
Problem
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
Project Management/Implementation
41%
Innovative thinking
41%
Structured Thinking
33%
SW Skills
27%
Ability to work in teams
18%
HW Skills
15% 0% 20% 40% 60%
technology trends; the view was expressed that the gap between theory and practice needs to be bridged via mediums such as internships
% of Companies
Source: Business Survey

Overall business perception of IT Skills
Roughly a quarter of companies are not satisfied with the quality of IT professionals from
We are satisfied with the quality of the IT professionals from educational institutions in Kenya
educational institutions in Kenya Approximately companies have a third contacted of or

We contracted/will have to contract external providers of IT services due to the lack of internal IT skills
plan to contact external providers to manage the skills shortages. Roughly half of the respondents
Lack of IT skills in the country has a significant effect on business operations and performance
believe that the lack of IT skills

significantly impacts business
Lack of IT skills in the country has a significant effect on IT operations in our organization
and IT operations & performance.
0%
20%
40%
60%
80%
100%
% of Companies
Strongly Disagree Disagree Neither Agree Strongly Agree

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

Inhibitors - Businesses view
Q. In your opinion, what are the key factors hampering the availability of IT skilled professionals in the country?
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% 22%
82%
17%
13%
8%
3% 20% 40% 60% 80% 100%
% of Companies
Residents Survey Highlights
38

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.

Gap analysis framework
Middle level colleges
IT Profess ionals from abroad
Training/ Retraining
Public and Private universities
Training institutions
Unqualified supply or Skills mismatch Brain drain especially at higher Skill levels
Students who go abroad or pursue higher studies
Attrition
Qualified Supply
Move to management tracks
Gaps filled by expats for short-term project duration
Gap
Demand

Dimensions of the gap in IT skills
Technical gaps Enterprise/business application skills, software development, mobile applications IBM and SAP related technology skills
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
Gap in IT professionals
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

Overall Recommendation areas and initiatives
Expand capacities of universities and colleges
Provide infrastructure and funding support Address qualified teaching shortage; Evaluate & incentivize the supply
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
Integrate ICT in education

Incorporate more ICT elements at secondary level More attachment programs and internships with technology companies to learn and apply
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
Improve connectivity
Provide last-mile connectivity through pricing incentives Help middle and lower tiers of educational institutions to get connected
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
Financing & Support

Specialized funding for ICT courses ICT incubators with educational institutions Tax relief & special funds for technology focus areas
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
Promote IT as a career
Attract more people (especially youth and females) via promotional campaigns Attractive industry compensation standards
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.

Projects prioritization
Consider
Expand capacities of universities and colleges Review university curricula Focus on special interest areas
Implement
Improve connectivity
Impact
Establish specialized programs for graduates Promote IT as a career Integrate ICT in education Harmonize and monitor supply & demand
Financing & Support
Low Low
Ease of implementation
High
Residents Survey Highlights
44
Residents Survey Highlights Internet Usage at home

Q16. Do you have an Internet connection at home?
63% 26% 37% 26% 23% 23%
Internet Home Penetration by Location

74%
77%
77%
86%
14%
74% Yes No
Mombasa Nairobi (253) Kisumu (120) Nyeri (100) Eldoret (98) (179)
Internet Home Penetration by SCL

53%
Base : Total Sample (750)
79%
91%
96%
47% AB (238)
21% C1 (328) Yes
9% C2 (161) No
4% D (23)
26% of the surveyed HH use internet Internet usage increases by SCL levels. It is highest in Mombasa (37%)
45 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Base = The figure in parenthesis represents
the base of the respective category
Internet Usage at home

Inhibitors for Not Using internet at home
Q17. What are the reasons for not having internet connection at home till now?
We dont have PC We cant 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 dont know how to use internet Internet connections are poor in terms of quality Others Nothing 28% 17% 13% 11% 3% 1% 1% 58% 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 SCLs (D and C2) is mainly hindered by their inability to buy PCs or pay for internet connection
Kind of PC, Internet Device & Mobile Service Used

Q25. What kind of PC do you use?
Desktop Both Laptop 22% 20% 58%
Q60. Which kind of mobile service do you use?

Prepaid Postpaid Both 1% 1% 97%
Base : Users of PC (519) Q31. Which of the following devices have you used to access the Internet in the past 12 months? Other mobile phone / internet enabled mobile phones Desktop Laptop Smartphone Digital TV 1% 15% 34% 80% 71%
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
Base : Users of Internet (592)
Purposes for Using PC
Q27. What is your primary purpose for using the PC?

Overall
Detailed by Age 15 24 (219) 25-34 (163) 35-44 (67) 45+ (70) Detailed by Gender Male (313) Female (206)
Personal usage Entertainment Communication
71% 66% 64% 45% 36% Base : Users of PC (519)
69% 77% 63% 57%
72% 70% 65% 42%
72% 49% 66% 27%
76% 40% 67% 30%
71% 68% 64% 43%
71% 64% 65% 47%
Education
Work
20%
44%
43%
59%
40%
29%
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.
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Base = The figure in parenthesis represents 48
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 45+ (70) Male (313) Female (206)
Overall
15 24 (219)
25-34 (163)
35-44 (67)
Voice services SMS
97% 96% 45% 42% 37% 35% 31% 24% 15%
97% 97% 51% 53% 47% 42% 36% 33% 20%
96% 97% 52% 45% 41% 35% 31% 23% 17%
97% 99% 41% 34% 31% 34% 32% 20% 10%
99% 88% 26% 23% 17% 24% 21% 10% 8%
97% 96% 46% 44% 39% 38% 30% 25% 18%
96% 95% 45% 40% 34% 31% 32% 22% 12%
Access to social media websites

Web Browsing Entertainment
Access to Email
PIM Chatting Sending MMS
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
Confidence in Using the PC

Overall
Q47a. How confident are you in using
Text processing using a program such as Word 8% 24% 68% 1%
Creating a presentation with text and images, such as PowerPoint
17%
22%
57%
3%
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
19%
24%
55%
3%
21%
22%
51%
4%
37%
18%
36%
8%
Detecting and solving computer problems
42%
16%
31%
11%
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 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%)
50 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Base = Users of PC
(n=519)
Confidence in Using the Internet

Overall
Q47b. How confident are you in using
Creating a Web page/a blog
6%
12%
80%
2%
Using an Internet search engine
7%
14%
79%
1%
Using email to communicate with others
13%
15%
65%
7%
Finding downloading, and installing software Posting messages to chat rooms, newsgroups, or online discussion forums
26%
17%
49%
9%
39%
16%
29%
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%)
51 Copyright IDC. Reproduction is forbidden unless authorized. AllUsersreserved. Base = rights of Internet
(n=592)
Financial Transactions on the Internet and Mobile

Type of transition, Number of online Purchases
Q38. Which of the following on-line / electronic (through internet or mobile) services have you used in the past 12 months?
Top up of Airtime through Mobile Money Transfer Payments (utility & mobile bills etc) through Mobile Money 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 9% 9% 7% 4% 3% 2% 0% 16% 14% 38% 86%
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%)
Tasks Performed on the Internet

Q34. Do you use the Internet to perform any of the following tasks?
15 - 24 (238)
Communicate with colleagues Search for information Education and learning activities Playing or downloading video games or computer games Reading or downloading on-line newspapers or magazines Getting information about goods or services - Internet usage Using peer-to-peer file sharing for exchanging documents, Finding, downloading, and installing software Communicate with customers/citizens/ residents Getting information from general government organizations Keeping viruses, spyware, and ad-ware off your computer Schedule business appointments Interacting with general government organizations Checking a receipt of payments Purchase or place orders goods and services Online banking
Detailed by Age 25-34 35-44 (182) (88)

82% 70% 42% 27% 30% 34% 23% 25% 21% 10% 13% 11% 8% 5% 8% 4% 76% 66% 24% 23% 26% 26% 14% 22% 23% 14% 14% 13% 10% 7% 2% 0%
45+ (84)
57% 64% 29% 19% 33% 34% 8% 19% 29% 11% 16% 8% 5% 2% 5% 4%
Detailed by Gender Male Female (346) (246)

79% 70% 39% 31% 27% 29% 25% 25% 21% 13% 13% 10% 8% 5% 6% 4% 76% 65% 40% 26% 29% 25% 18% 18% 20% 11% 11% 7% 7% 4% 4% 1%
77% 68% 40% 29% 28% 27% 22% 22% 21% 12% 12% 9% 7% 5% 5% 3%
81% 68% 48% 37% 25% 19% 28% 21% 17% 13% 11% 6% 6% 4% 5% 2%
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
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Base = The figure in parenthesis represents
53
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
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% 21%
23% 68%
61%
3% 6% 3% 3% 3% 17% Don't KnoW
21% 21% 24% 24% Neutral (Scale 4)
66% 63% 58% 41% Satisfiied (Scale 5-7)
Dissatisfied (Scale 1-3)
Base : Users of Internet (592) 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%)
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?
46% 45%
43%
61%
45%
Not aware of any services provided online
47%
Nairobi (253) Mombasa (179) 41% 46% Eldoret (98) 45% Kisumu (120) Nyeri (100) 32%
Aware of them, but have never used any online services
24% Kisumu (120) 15% Kisumu (120)
39%
Nairobi (253) Mombasa (179) 13% Eldoret (98) 12% Eldoret (98) Nyeri (100) 23% Nyeri (100)
Aware of them and have used them in the past 12 months
9%
14%
Nairobi (253) Mombasa (179)
Base : Total Sample (750)
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?
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 25% 19% 15% 13% 39% 68%
9%
6%
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in Past 12 Months (n=103)
Other e-Government Services
Q68. Are there any other government services you would like to see available on line?
Advertisement of Government positions Application of birth certificates Electronic elections Processing of licenses by KRA - Any other government services you would like available online Title deeds acquisition Downloadable ID cards/ passports How the budget is prepared/processed People with disabilities should be put online Show/upload government services City council stickers Efficiency/accountability of government related work and projects Payment of council levies Appointments for government positions ID registration 20% 13% 13% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7%
None/Dont Know : 85%
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in Past 12 Months (n=103)
Barriers to ICT Usage

Q63. What are some of the reasons that may be limiting your use of ICT (computers and Internet)?
Detailed by Location
Nairobi (253) Mombasa (179) Eldoret (98) Kisumu (120) Nyeri (100)
Computers/Internet not available at home High costs of buying/renting computers High costs to connect to the Internet High costs of maintenance and repairs for computers Technology is too complicated Lack of required skills to use computers/ internet Risk of viruses is too high when using the Internet Computers/Internet not available at work Lack of trust for ICT (e.g. security/ privacy issues on the Internet) Internet cafs are hard to reach or find Not secure to do business/ make transactions over the Internet Not enough websites / content in local language Computers/Internet not available at school/ university Others There are no barriers at all
40% 36% 31% 25% 19% 19% 15% 10% 10% 7% 7% 5% 3% 3% 16%
37% 41% 25% 24% 20% 21% 21% 14% 11% 8% 7% 6% 3% 0% 3%
36% 31% 34% 27% 18% 15% 18% 18% 7% 14% 9% 9% 7% 8% 2%
40% 32% 34% 19% 14% 16% 15% 6% 5% 4% 2% 8% 1% 1% 0%
58% 43% 38% 33% 15% 24% 3% 14% 18% 23% 16% 7% 7% 8% 3%
30% 25% 26% 21% 27% 20% 19% 19% 6% 2% 1% 6% 4% 1% 6%
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.
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
59
Business Survey Highlights
60
Business Digital Presence

Which of the following does your organization have at present?
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Website
e-Newsletter
Online advertising/banners
Profile on social networking websites
Blog
Sponsored presence/listing on other websites
Others
Nothing

Constraints for internet usage
Don't Know 0.52%
Nothing 2.07% Other 6.74%
Internal ICT infrastructure 18.13%
Quality of Service 27.98% Internet prices 20.21%
Internet not necessary or relevant to activities 5.70%
Internet availability/cove rage 18.65%

Total number of full time employees that have access or use shared / dedicated PC
Large (500+ employees) Less than 30 30-49 employees 50 - 99 employees Medium (100-499 employees) 100-499 employees 500-999 employees 1000-4999 employees More than 5000 employees Small (30-99 employees)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90% 100%
Awareness and Usage of e-government services
Business licensing e-registry
Report Corruption online
Customs Services online
Submit Tax Returns online - E-government services used for work purposes
0% Not aware Aware but have not used
10%
20%
30%
40%
50%
60%
70%
80%
90% 100%
Used more than a year back
Used in last year
Satisfaction with e-government services
0%
20%
40%
60%
80%
100%
120%
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
Very Dissatisfied
Dissatisfied
Neutral
Satisfied
Very Satisfied
Recommendations IT Skills Gaps

Macro Area Details Broad Recommendations 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 Focus connected Bridging programmes to involve academia, graduates and ICT Business leaders Curriculum refresh and plan to do this regularly Inclusion of basic soft skills courses as part of the curriculum Establishment of Industry Standards, Accreditation and Ethics body Specialized funding for ICT courses Focus Partner with training/ICT companies and ensure training availability Mechanism to balance the need for expat labour vs skills transfer value Incentivize Diaspora to reverse brain drain More attachment programs and internships with technology companies Consider to learn and apply Action
IT Skills
Increase output of number of skilled staff
Enhance quality of skills
Protect local jobs & stem brain drain
Recommendations Residential Usage

Macro Area Details increase e-govt services awareness increase e-govt services usage
Action
Focus
Broad Recommendations Awareness programmes on services currently offered and follow up on suggested online government services
Residential Usage
Leverage mobile operators to update citizens on government Focus services vis SMS (subsidized cost for government for bulk SMS). Deploy relevant USSD driven services for citizens Solicit feedback on content of interest, esp. from non-users Create awareness on other content and services Content - review feedback on content most used and share with beneficiaries of digital content funds to take ICT Adoption Consider action/innovate/respond Close collaboration with media to pursue the internet as a channel for delivery. Address costs - See macro item COST below Access - see macro item INFRASTRUCTURE and COST below Prioritized subsidies of public access centers after evaluation Provide infrastructure support and services subsidies Cost of Focus Re-animate local assembly initiatives through vendor PPP and with services/Devices political will
Recommendations Business Usage and Costs

Macro Area Details e-govt services awareness e-govt services usage
Action
Broad Recommendations
Awareness creation on existing content and services Leverage on high internet adoption to interact with businesses more via a various databases (e.g. customs, taxes, registry, immigration etc)
Business Usage
Focus
Focus
Roll out more services and solicit feedback on what is needed
Skilled Staff Monitor See SKILLS macro ICT Adoption Internet Services PC Costs Mobile Device Costs Cost of services and Quality of Services - need to sensitize business Monitor users of their rights in collaboration with the sector regulator. Collaborative campaigns. Consider Further subsidize public access areas, secondary schools Consider Revive local assembly initiatives (e.g. Nigeria with Zinox) Consider
Cost
Partnerships with vendors of low cost devices, tap into local application community
Recommendations Channel & Infrastructure

Macro Area Details Action Broad Recommendations Vendor confidence & investment Monitor See Skills Macro Above See SKILLS Macro above Foreign Focused marketing & local promotional events that explicitly illustrate strengths Investment Nurture Tier 2 players as possible partners through capacity building, seed Focus funding, preferential treatment in government procurement Tier 1 VAR Monitor Tier 2 VAR Develop plans to help elevate Tier II players into Tier I players Business Incubation Initiatives Focus Capacity building outside urban areas and create employment Pursue CCK about USF plans and enjoin KITCB in discussions on ICT Access Gaps Consider Collaborate with CCK to sensitise operators on USF
Channel Infrastructure
Last Mile Access Backhaul to remote areas Power
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 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

Regulation Awareness Content Curriculum reform
Infrastructure Skills
Infrastructure Business Skills Business Skills Business Skills
Residential
Residential Residential Residential Channel
Cost
Thank You
71

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Kenya ICT Board Monitoring and Evaluation Survey Results

22ND November 2011

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Residential Usage and Penetration Highlights

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Benchmarking key Kenya ICT indicators against six countries

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Kenya ICT Market Overview

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Market Overview Kenya ICT Market Key Indicators

Total number of internet users % of population with Internet Access

Market Overview ICT Spending by Technology Areas

2010 91.20 69.12 586.40

2011 107.65 80.06 681.01

2012 130.04 88.91 829.25

2013 153.52 101.72 955.94

2014 180.00 116.92 1,078.92

2015 209.04 132.40 1,192.11

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Market Overview Spending by Vertical Sectors

Agriculture, Construction, and Mining 3% Financial 13%

Education 3% Discrete Manufacturing 2%

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Kenya ICT Ecosystem

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Kenya ICT Ecosystem Structure

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Kenya ICT Ecosystem Highlights 1/2

Kenya ICT Ecosystem Highlights 2/2

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Kenya ICT Ecosystem Highlights 2/2

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Kenya ICT Ecosystem Kenya as a regional Hub

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Kenya ICT Ecosystem Challenges faced

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Kenya ICT Ecosystem Vendors Market Outlook

Deepen customer relations as more intimacy is needed in the market.

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Internet subscribers percentage of total population Total Internet user penetration

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8 7 6 5 4 3 2 1 0 Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco

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35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%

Proportion of households with internet access Proportion of households with a computer

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Extent of Business Internet Use - WEF Indicator

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$0.00 Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco

Internet Access Tariff - Broadband

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IT Skills Survey Highlights

Source: IDC IT Skills Model

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IT Skills Survey Highlights

Application Systems Analyst System Engineer (Computer Networking/IT) IT Consultant

professions differs by profession.

expected to grow the fastest over

IT Project Manager 1,051

Web Designer 1,238