This archive report was first published on 23 June 2021.
On June 23, 2021, Kenya's digital economy was a hot topic as the country's leaders looked to the future. The Digital Economy Platform, a key initiative of the government, was set to be discussed at a meeting chaired by none other than the Cotu Secretary General, Francis Atwoli.
“The future is digital. As a country, it's a time we exploit the digital economy,” Atwoli shared, highlighting the importance of embracing the digital age.
Atwoli's comments came on the heels of the establishment of the Dubai Digital Authority (DDA) by Sheikh Mohammed Bin Rashid Al Maktoum. The DDA will be responsible for all matters related to information technology, data, smart and digital transformation, and information security.
Kenya too has been focusing on implementing the Digital Economy Blueprint, launched in 2019. The blueprint defines the digital economy as the entirety of sectors that operate using digitally-enabled communications and networks leveraging the internet, mobile, and other technologies.
According to evidence, information and communications technologies (ICTs) account for 17% of GDP growth in developing countries. This has significant implications for Kenya's economy, which is heavily reliant on ICTs.
As the digital economy continues to grow, traditional businesses are being transformed. In the financial services sector, mobile banking and integrated payment solutions have significantly scaled up access to money and credit facilities.
The rise of social media influencers has also created new opportunities for businesses to reach their target audiences. Traditional advertising is slowly being replaced by native and viral methods that utilise influential celebrities and social media sensations.
With the digital economy comes increased competition from global players. It is vital that Kenya develops a vibrant digital economy to avoid being swamped by fast-moving global brands and companies.
