By David Keitany
Kenya’s telecommunications sector has for the longest time been driven by innovations that have spurred robust business growth, creating employment and other related opportunities, directly and indirectly.
The 2018 GSMA report, The Mobile Economy Sub-Saharan Africa, indicates that in 2017, mobile technologies and services generated about 7.1percent of GDP in sub-Saharan Africa, a contribution that amounted to about $110 billion of added economic value. These figures are projected to rise to about 7.9 percent and $150 billion, respectively by 2022.
The mobile eco-system also supported about three million jobs, directly and indirectly, and made a substantial contribution to the funding of the public sector, with almost $14 billion raised through taxation; these are projected to rise northwards of 3.5 million jobs and $16 billion respectively by 2022.
Despite the growth seen over the years, Kenya’s sector is still ailing; one player controls about 70 percent of the country’s mobile subscribers and more than 90 percent of the revenue collected in the market. This phenomenon has stunted the growth of smaller players hence affecting the whole telecommunications eco-system.
Early this year, Airtel and Telkom announced their intention to merge their respective businesses to operate under a joint venture company that they have christened Airtel-Telkom. The intention was laudable as it spoke to renewed hope in a precarious telecommunications arena. However, this may soon be short-lived…Read more>>
