The Digital Economy Matrix Initiative is focused on empowering Private Sector Leadership in Digital Economic Transformation. This initiative aims to enhance the accountability of the Government on progress made on the Digital Economy commitments and the ICT masterplan. KEPSA Foundation is among the stakeholders in the working group to provide input on the matrix design and guide the indexing scorecard process to determine Kenya’s digital economy transformation. This partnership has been instrumental in promoting the digital economy in Kenya through which we have identified shared challenges and opportunities to improve governance around digital development. we recognize the need to draw our focus on the digital economy and the stakeholder collaboration in driving this agenda. The digital economy, including cross-border services and e-commerce, has become a significant driver of economic growth and development, particularly in Africa. It contributes to democratic and economic development by expanding market access, promoting inclusive trade, and expanding tax revenue for governments to provide essential services.

We recognize the role of the digital economy as a significant driver of economic growth in Kenya, with projections indicating that it will contribute 9.24% of the country’s GDP by 2025. Since 2016, the ICT sector in Kenya has grown by an average of 10.8% annually, making Kenya one of Africa’s leading digital economies. The National ICT Policy aims to increase the sector’s contribution to both the digital and traditional economy to 10% of GDP by 2030.

We further acknowledge that in the near future, 90% of jobs will be digitally enabled. This presents a concern for the Foundation, as there is a risk of further marginalizing our target groups. To address this, it is essential to embrace capacity building through digital skills in all SME training programs.

Kenya faces a significant digital divide, with 44% of the urban population having access to the internet compared to 17% in rural areas. Widespread gaps in basic digital skills limit the wider usage and application of digital tools and services, while gaps in advanced digital skills limit business development. To accelerate the growth of the digital economy, Kenya is required to develop high-end ICT skills to design and support complex digital systems and innovations. We also acknowledge that cyber security, internet access and equipment costs and digital training and/or skills development/awareness are key challenges that need to be addressed in order to embrace digital inclusion.