Information and Communication Technology (ICT) sector has experienced its first decline in growth since the Covid-19 pandemic. Data from the Kenya National Bureau of Statistics reveals that the industry grew by 7.8% in the first quarter of 2024. Down from 9.5 percent during the same period last year. This marks a notable slowdown from its steady year-on-year growth. This started at 5.1 percent in March 2021 and rose to 8.1 percent in 2022.
This deceleration in the ICT sector mirrors a general trend of slower growth across most economic sectors, except banking. Kenya’s overall economic growth rate decreased to 5 percent in the first quarter of 2024. Compared to 5.5 percent in the same period in 2023. The challenging business environment, driven by high interest rates, has contributed to this slower growth. According to KNBS, all sectors, except finance and insurance, recorded slower growth in the first quarter of 2024 compared to the previous year, reflecting tough macroeconomic conditions.
Despite this slowdown, the ICT sector remains vital for supporting other commercial segments, such as financial services, e-commerce, public services, and e-learning. The government has been making significant efforts to drive a national digital revolution through various infrastructural and skill-development initiatives. These include laying down 100,000 kilometers of national fiber optic cable, installing 25,000 free Wi-Fi hotspots, and establishing digital hubs in Kenya’s 1,450 wards.
Importance of the ICT Sector
During the COVID-19 pandemic, the ICT sector grew as people shifted to online interactions and services. This is in response to government measures to contain the virus. This led to increased demand for fixed internet and the adoption of e-learning. Since then, Kenya has made significant progress in digital transformation. with innovations in real-time data collection and management, cybersecurity, and big data management.
Experts are calling on the government to speed up investments in complementary services. Such as reliable power supply and internet access, to support continued growth in the ICT sector. READ MORE
