Kenya’s entertainment and media (E&M) sector is poised for remarkable growth over the next five years, with its internet advertising market leading the charge as the fastest-growing globally.
- •According to PwC’s Africa Entertainment and Media Outlook 2024–2028, Kenya’s internet advertising revenue is expected to grow at a compound annual growth rate (CAGR) of 17.4% between 2023 and 2028, surging from $163 million to $365 million.
- •This growth is driven by increasing internet penetration, the rise of digital platforms, and the adoption of mobile-first strategies, which are reshaping the advertising landscape in the country.
- •The Kenyan E&M market, though smaller than South Africa and Nigeria, is set to experience solid growth, with a projected 5.2% CAGR across all segments.
Internet advertising and over-the-top (OTT) streaming services are expected to be the fastest-growing sectors, fueled by the expansion of 4G and 5G networks. By the end of 2024, Kenya is anticipated to reach a tipping point where 4G subscriptions surpass 3G, further enhancing connectivity and enabling greater access to digital content. This shift is critical for the growth of internet advertising, as mobile services dominate the market due to low fixed broadband penetration, which stands at just 10.4% of households.
Kenya’s unique position as a mobile-first market also extends to gaming, where traditional gaming revenues still exceed mobile gaming in 2023. However, the gap is expected to narrow by 2028 as smartphone accessibility improves and social/casual gaming gains traction.
The country’s gaming sector is also benefiting from rising mobile game spending, driven by the increasing affordability of smartphones and data packages. This trend aligns with the broader African market, where mobile gaming dominates due to the limited accessibility of console and PC setups.
The OTT market in Kenya, though relatively small compared to South Africa, has doubled in size in recent years and is projected to grow at a 10.9% CAGR, reaching $16 million by 2028. This growth is supported by partnerships between international streaming services and local telcos, offering lower-cost, mobile-only plans to boost adoption. However, challenges such as inflationary pressures and the removal of free mobile-only tiers by platforms like Netflix highlight the need for innovative pricing strategies to sustain growth in this segment.
Live events in Kenya have also rebounded strongly post-COVID-19, with 2023 marking the highest-ever live music ticket sales revenues, surpassing pre-pandemic levels. Additionally, the rise of connected TV (CTV) advertising presents a significant opportunity for future growth, as it bridges the gap between traditional linear TV and premium online video. While CTV adoption in Africa is still in its early stages, its potential to deliver addressable and measurable ads on TV screens could transform the advertising landscape in Kenya and beyond.
