Why the digital economy of Kenya is on the upswing

The progress made reinforces a deliberate national strategy to leverage digital tools and infrastructure for widespread prosperity that aligns seamlessly with the United Nations 2030 Agenda and the Bottom-Up Economic Transformation Agenda.

The rapid expansion of Kenya’s digital economy is built upon significant investments in foundational infrastructure. Across the country, efforts are being made to enhance connectivity and establish the backbone for a truly digital society.

One prime example is the development of advanced Konza Smart City infrastructure, featuring state-of-the-art water treatment and wastewater reclamation plants, alongside extensive power lines and ICT conduits. Notably, a substation — the largest in East and Central Africa — is designed to ensure clean and reliable energy.

Green energy innovations

This will be complemented by emerging green energy innovations currently ongoing. These advancements, coupled with improved transport links, are creating interconnected ecosystems crucial for digital trade and innovation nationwide.

The establishment of institutions like the Kenya Advanced Institute of Science and Technology, which is complete, is pivotal for driving postgraduate research and innovation in critical fields of science, technology, engineering and mathematics. This ecosystem also includes the Open University of Kenya, highlighting the importance of accessible, high-quality skills-based education.

These institutions, along with emerging private-sector universities and innovation hubs are actively fostering an environment conducive to research, development, and entrepreneurship. The focus is to support startups in crucial sectors like renewable energy and climate tech, linking them with funding and mentorship.

Initiatives such as the Jitume Digital Enablement programme are rolling out in Technical and Vocational Education and Training institutions, universities, and community centres. Such initiatives provide high-speed internet, digital devices and an opportunity for capacity building and jobs linkages for Kenyans. The partnership involves the government, private sector and development partners.

Digital skills development

In addition to digital skills development, the Konza National Data Centre enhances efficiency and accessibility across public, private sector and startup ecosystems. One notable, locally developed innovation is Sajili, a digital registration platform developed by Konza Technopolis, which has streamlined registration processes for various government agencies and is now available to private sector entities. By reducing paperwork, it not only supports environmental sustainability but also promotes secure, paperless data management.

The concerted efforts in digital transformation are yielding tangible economic benefits and are projected to contribute significantly to the Gross Domestic Product — with substantial job creation already observed and further growth anticipated. The country’s strategic focus on key clusters like ICT, life sciences, and engineering or emerging technology is attracting vital global investment — alongside other opportunity sectors like tourism and manufacturing.

At the same time, initiatives like the Digital Media City are positioning Kenya as a continental hub for the creative economy, targeting the rapidly growing multi-billion shillings Extended Reality and Virtual Reality market, projected to continue growing.

Through strategic partnerships with organisations such as the Kenya Film Commission and Genesis Design Factory, the initiative could unlock Kenya’s immense potential in the creative sector.

John Paul Okwiri is the CEO, Konza Technopolis Development Authority