World Bank gives Kenya Sh52b to boost e-services delivery
By Nicholas.Waitathu, April 13, 2023
The World Bank has approved $390 million (Sh52 billion) to boost Kenya’s digital economy. The financing to be expended under the Kenya Digital Economy Acceleration Project (KDEGAP) will use a Multi-Phase Programmatic Approach for the next seven years.
World Bank Country Director for Kenya, Rwanda, Somalia and Uganda, Keith Hansen explained that the KDGA will be implemented in two phases. The first fast-tracking between 2023-2028, he said, will focus on expanding access to high-speed internet, improving the quality and delivery of education and selected government services, and building skills for the regional digital economy.
Phase 2 will run from 2026-2030, concentrating on building a data driven and secure environment for enhanced digital service delivery and innovation for the regional digital economy. The project will also mobilize an estimated $100 million in private capital by crowding-in the private sector for broadband infrastructure development.
“Broadening access to digital technologies and services is a cross-cutting pathway to accelerate economic growth and job creation, improve service delivery and build resilience,” said Hansen.
The project, he added, aims to help make Kenya’s growth more equitable growth by shrinking disparities in digital skills and connectivity and expanding the digital marketplace. While Kenya has made impressive gains, he observed there remains a persistent digital divide in access to broadband, digital public services, and the skills needed for individuals and businesses to thrive in an increasingly digitized economy and society.
Kenya needs the economies of scale and network effects of a larger and more competitive regional market to achieve its vision to become one of the premier digital investment and innovation hubs on the African continent.