Rural communities in Kenya are set to face slower digital access after the government cut funding for its Information, Communication Technology and Digital Economy initiatives by 25%, scaling back infrastructure projects meant to bridge the digital divide.
- •Under FY 2025/26 Supplementary Estimates, the department’s total allocation fell from KSh 16.2 billion to KSh 12.2 billion, with capital expenditure taking the brunt of the cut while current spending edged slightly higher.
- •The original budget allocated KSh 3.6 billion for current expenditure and KSh 12.6 billion for capital projects, with revised estimates dropping sharply to KSh 8.6 billion.
- •However, the supplementary budget slightly raised the current expenditure by a modest KSh 74.3 million to cover day-to-day operations and administrative services.
The most significant casualty of the budget cuts is the ICT infrastructure development, which encompasses county-level connectivity and business process outsourcing initiatives, falling from KSh 13.09 billion to KSh 9.13 billion.
The last-mile county connectivity project, a cornerstone of Kenya’s digital inclusion agenda, saw targets scaled back. The fibre optic network’s uptime is at 95%, but the number of sites set to be connected will be reduced from 400 to 50.
According to the Kenya National Bureau of Statistics (KNBS), counties such as Turkana (12.7%), West Pokot (9.1%), Tana River (15.5%), and Marsabit (16.3%) have internet penetration well below the national average of 35%. Nairobi, by contrast, has 64.7% internet usage, while Kiambu and Nyeri are at 54% and 50.1% respectively.
Public digital hubs and Wi-Fi installations also faced reductions, with the number of Digital Village Smart Hubs per ward lowered from 290 to 50, a change that may further constrain rural access to digital services.
E-Government services are mostly intact but current expenditure decreased slightly from KSh 1.978 billion to KSh 1.953 billion. Capital spending rose slightly to KSh 717 million to support non-financial assets and grants. Targets include digitizing 200,000 government records, automating 10 government services, and onboarding Ministries, Departments, and County Agencies to government email and unified communications systems.
On the other hand, Konza Technopolis — a flagship smart city project — is still largely on course, but with slight adjustments. The data center is expected to reach full completion, while the smart city facility’s completion target has been reduced marginally from 100% to 95%. The dedicated bulk water supply system for the technopolis is expected to be fully operational, maintaining a 100% target.
The ICT and BPO development subprogram saw capital expenditure slashed from KSh 3.3 billion to KSh 548 million, a reduction of KSh 2.75 billion, even as the government maintains its target of creating 10,000 business process outsourcing jobs. The scale-back in infrastructure funding could limit the support necessary for expanding Kenya’s BPO sector and attracting private investment.
Within the department, general administration and planning services were largely protected, with allocations rising slightly from KSh 403.4 million to KSh 410.4 million. These funds cover headquarters operations, policy development, and institutional frameworks.
