The latest KNBS economic survey has tracked improvements in the country’s ICT sector last year, with many Telecommunication and Internet services gaining an ascendance in subscribers and revenue.
- •Mobile Money transfers in 2023 rose by 19.6% with total transfer volumes increasing from KSh 4.6 trillion to KSh 5.5 trillion according to the survey.
- •However, KNBS also reported that mobile money subscribers fell slightly by 1.7% indicating the maturity of the market where growth is saturated.
- •The number of mobile transfer agents across Kenya increased by more than 8,000 as the market’s expansion and popularity sought for a satisfying number of service providers.
“In 2023, the fixed telephony capacity remained unchanged, while the number of fixed connections declined by 12.4 per cent to 10.5 thousand. This decline has been consistent over the past five years,” the KNBS Survey stated.
Conversely, mobile connections have continued to grow as their fixed counterparts fade into obscurity. The number of call minutes in 2023 hit 88.6 billion, rising from 78.1 billion in 2022. Domestic SMS in the era of internet messaging also surprisingly increased by 2.3%.
The survey also indicates that mobile subscriptions rose from 65 million in 2022 to 66 million last year as the device became increasingly essential for other machine functions.
“The rise in mobile phone usage has facilitated the integration of mobile networks with machines. Machine-to-machine (M2M) technology, which involves the allocation of mobile subscriptions for use in various devices like cars, smart meters, and consumer electronics, enables data exchange between networked devices,” the survey noted.
International calls increased by 1.7%. The decline in this service’s popularity is due to the proliferation of other digital ways to communicate with individuals outside the country. Zoom calls, whatsapp video calls, and Skype have been regarded as cheaper and more convenient options for this purpose.
The cost of making calls to other jurisdictions rose in 2023 with Uganda and South Sudan registering a 15% increase in tariffs. However, calls to Tanzania in 2023 fell by 43% with a minute call cost dripping from Ksh. 53 in 2022 to Ksh. 30 last year.
As a result of the expansion of these services, Telecommunication companies saw a 7.7% increase in overall revenues. KNBS also reports that targeted investments in various services saw a 13% increase, with staff employment rising from 9,352 in 2022 to 10,526 last year.
Internet Services
The value of the internet to the Kenyan economy has rapidly outpaced other technological sectors. It has not only affected information outlets, but has also seen a realignment of strategies in both government and private sectors. According to the KNBS economic survey 2024, internet usage rose from 48 million to 52 million last year.
The rising usage of internet has seen a parallel growth of licensed internet service providers in Kenya, with 62 new ISPs being registered in 2023. Wireless data subscriptions represented the highest share of internet usage but Fiber optics subscriptions hit the 1 million mark after rising by 23% last year. Satellite internet subscription also increased from 730 to 2,933 last year.
Even more crucial than the expansion of internet subscriptions is the reliability of the network. KNBS reports that in 2023, internet broadband capacity increased by 44.5% allowing users to enjoy strong and faster connections.
As more players penetrate the market, a competitive playground will ensure better services are provided and cheaper internet assured. As employment on online platforms and social media influencing remains invaluable for the youth, ISPs are projecting increased market revenues.
Internet connectivity in many parts of Kenya have also affected media consumption habits. Electronic media such as TV and Radio is becoming more integrated with the internet, departing away from traditional cable forms. Print newspapers have also fell by 4.3% while online newspaper consumption rose by 4.4%.
“There was a growth of 3.8 per cent in Direct to Home Satellite subscriptions to 1.8 million in 2023. Similarly, digital terrestrial television subscriptions went up by 2.3 per cent from 4.4 million in 2022 to 4.5 million in 2023 which was mostly attributed to expansion in the adoption of digital television services,” KNBS reported.
Internet expansion has also brought its own share of challenges. Cyber crimes rose by an astronomical high of 91.7% with system vulnerabilities and malware being reported as the most prevalent. The KNBS survey situates the position of internet technology on the national spectrum, offering policy makers a starting point to tackle social and economic problems.
The value of ICT in the modern economy streams across all sectors such as manufacturing, energy, banking, and transport. As the government rallies its systems to digitize, internet integrity as well as infrastructural stability will require a multifaceted approach from all its players.
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