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PS Tanui highlights growing impact of digital economy on small businesses

PS Tanui highlights growing impact of digital economy on small businesses
John Tanui during a past event. PHOTO/@tanuijohn/X

Public Service Principal Secretary John Kipchumba Tanui has underscored the expanding role of Kenya’s digital economy in strengthening small businesses, improving public service delivery, and enhancing national productivity.

He made the remarks through a series of posts on June 18, 2026, and during the National Productivity and Performance Conference 2026, organised by the Salaries and Remuneration Commission (SRC).

He noted that ongoing digital reforms are reshaping how citizens access government services and how institutions operate across sectors.

Key platforms and systems cited include eCitizen, the Social Health Authority (SHA), Maisha Namba, unified human resource systems, expanded broadband infrastructure, the Government Enterprise Architecture (GEA), and the Government Interoperability Framework (GIF).

According to the PS, more than 22,000 government services are now available online, contributing to improved efficiency, transparency, and accountability across public institutions.

Digital economy driving public service transformation

Tanui said Kenya’s digital transformation agenda continues to align with the Digital Masterplan 2022–2032 and the National AI Strategy 2025–2030. He pointed to the integration of digital systems as a key driver of performance improvement in public service delivery.

He emphasised the need to accelerate interoperability between government systems, strengthen data governance frameworks, enhance cybersecurity, expand digital inclusion, and promote responsible adoption of emerging technologies such as artificial intelligence, cloud computing, and big data analytics.

John Tanui X post. PHOTO/A screengrab by PD Digital@tanuijohn/X

He noted that the long-term goal is to build a citizen-centered and data-driven public service that delivers faster and more efficient outcomes across all 47 counties.

SME growth and digital entrepreneurship

Tanui highlighted the contribution of small and medium enterprises (SMEs) in driving Kenya’s digital economy, citing examples of entrepreneurs leveraging social media platforms and online tools to scale their businesses.

He referenced the growth of Faster Errands, founded by Chumbaa wa Errands, which has expanded through digital platforms such as TikTok. The business connects suppliers, consumers, and service providers in real time, creating income opportunities for young people while supporting small businesses and reducing barriers to market access.

“Chumbaa wa Errands has emerged as a notable example of how Kenya’s digital economy is creating new pathways for entrepreneurship, innovation, and job creation. By effectively leveraging digital platforms, particularly TikTok, she has successfully built and scaled Faster Errands into a thriving enterprise that connects businesses, suppliers, and consumers in real time.”

The PS noted that such innovations demonstrate how digital platforms are reshaping value chains, enabling informal businesses to transition into structured enterprises, and broadening economic participation among youth and women.

John Tanui’s post. PHOTO/A screengrab by PD DigitalJohn Kipchumba Tanui/Facebook

International partnerships and skills development

Kenya’s digital strategy has also been reinforced through international cooperation. Recent engagements between William Ruto and Alexander Stubb during a high-level business forum focused on expanding secure digital infrastructure, including fibre connectivity, 5G networks, private networks, data centres, cloud computing, fintech innovation, and digital skills development.

The ICT sector currently contributes about 9 percent to Kenya’s GDP, with projections indicating that the digital economy could surpass USD 12 billion by 2026, supported by the country’s mobile money ecosystem.

Tanui also hosted stakeholders from Microsoft Africa, the ICT Authority, KENET, and Huawei to advance AI and digital skills training initiatives. The collaboration is expected to expand over 200 Digital Hubs and Jitume Centres nationwide, targeting at least 20 million Kenyans with digital skills by 2032.

Experts including Prof. Bitange Ndemo and representatives from technology firms contributed to discussions on positioning digital transformation as a core pillar of national productivity.

The initiatives form part of Kenya’s broader strategy to strengthen innovation ecosystems, expand connectivity, and support inclusive economic growth through technology adoption.

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