Kenya ICT Market Size (2024 - 2029)

Kenya ICT Market Analysis

The Kenya ICT Market size is estimated at USD 10.57 billion in 2024, and is expected to reach USD 14.08 billion by 2029, growing at a CAGR of 5.91% during the forecast period (2024-2029).

The ICT market in Kenya is experiencing notable growth, driven by an increasing emphasis on digital technology, cyber security, artificial intelligence, robotics, and healthcare IT. With a strong research infrastructure and a tech-savvy customer base, Kenya is emerging as a pivotal hub for diverse ICT endeavors.

• The government's strategic push toward a digital economy and a strong regulatory framework attract foreign investments. The country's already advanced telecommunications infrastructure and high internet penetration rates are further fortifying its ICT sector.
• Rising internet penetration in the country is bolstered by government initiatives, such as the Digital Economy Blueprint. In addition, substantial infrastructure investments are propelling the market. The surge in mobile phones and mobile money services, notably M-Pesa, has catalyzed digital inclusion and spurred innovation. Coupled with the emergence of tech hubs, incubators, and a youthful, tech-literate demographic, this has nurtured a dynamic startup landscape. International investments and collaborations have played a pivotal role in fueling the sector's swift growth.
• The surge in internet usage in the country is also driving the market studied. This uptick in connectivity is boosting the demand for digital services and products. These factors are accelerating the adoption of cloud computing, e-commerce, and digital communication tools while also catalyzing advancements in IoT, AI, and cybersecurity, addressing the escalating demand for varied online solutions.
• In May 2024, Kenya's digital transformation and sustainable mobility sector received a notable boost, with the US International Development Finance Corporation (DFC) revealing a substantial USD 250 million financing package. This announcement, made during President William Ruto's State Visit to Washington, highlights the deepening bonds between the two countries.
• Moreover, the country is witnessing a rise in cybersecurity concerns. Hence, businesses and organizations are indulging in various strategic partnerships in cybersecurity solutions with the aim of protecting sensitive data and maintaining trust, driving the growth of the market significantly. For instance, in May 2024, Google, the United States, and Kenya collaboratively unveiled a cybersecurity operations platform. The platform aims to bolster the security of Kenya's digital infrastructure. This involves an initial pilot project to enhance the resilience of Kenya's e-government services.
• However, concerns over privacy and data security, alongside the significant CAPEX requirements for advanced telecom infrastructure, are anticipated to impede market expansion during the forecast period.

Kenya ICT Industry Segmentation

Information and communication technology (ICT) is an extensive term that includes a range of communication technologies. These encompass wireless networks, the internet, computers, cell phones, software, videoconferencing, middleware, social networking, and diverse media applications. Together, these technologies enable users to store, access, transmit, retrieve, and manipulate information in digital formats.

Kenya’s ICT market is segmented by type (hardware, software, services, and telecommunication services), size of enterprise (small and medium enterprises and large enterprises), and industry vertical (BFSI, IT and telecom, government, retail and e-commerce, manufacturing, energy and utilities, and other industry verticals). The market sizes and forecasts are provided in value (USD) for all the above segments.