The digital sector is set to be among the leading contributors to the national Gross Domestic Product in the next four years, a new report by a global association of mobile telephony entities has said.
The report launched on Tuesday by GSMA projects indicates that Kenya’s digital economy will contribute Sh662 billion to the GDP by 2028.
This growth, driven by strategic policy reforms, will accelerate digitalisation in critical sectors such as agriculture, manufacturing, transport and trade.
In addition to these advancements, the report forecasts the creation of 300,000 new jobs and an increase in tax revenue by Sh150 billion.
The Kenya Kwanza administration has declared digital economy as one of its flagship initiatives to broaden national revenue and create jobs.
The GSMA’s study outlines the economic benefits of expanding digital adoption and provides a roadmap for maximising the gains through targeted policy actions.
To sustain its economic momentum, diversify the economy, boost productivity and create high-quality jobs particularly for young and rural populations, Kenya is focusing on digitalisation as a key driver of economic growth, government revenue and socio-economic development.
“The adoption of digital technologies across agriculture, manufacturing, transport and trade is expected to significantly contribute to GDP, create hundreds of thousands of jobs and generate substantial tax revenues by 2028,” the report reads.
In 2023, the mobile ecosystem contributed Sh1.2 trillion to Kenya’s GDP and Sh212 billion in government revenues.
However, the GSMA notes that significant gaps remain and addressing them will require bold policy initiatives to stimulate demand, reduce supply costs and encourage investments in mobile money services, telecom infrastructure and digital services.
In terms of internet connectivity, the report finds that 99 per cent of the Kenyan population is covered by 3G and 98 per cent by 4G network coverage.
However, it says, only 33.5 per cent of the population currently uses mobile internet, leaving a significant usage gap.
The report says that the gap could shrink from 63 per cent to 46 per cent by 2028, bringing over 1.5 million new users online and significantly expanding mobile money adoption.