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Kenya's Digital Economy Thrives Amidst Global Shifts

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 12 September 2019.

Published on September 12, 2019, a research study by the Mastercard Center for Inclusive Growth in collaboration with The Fletcher School at Tufts University in the US, has highlighted six African countries that are leveraging technology to drive economic growth.

The study examined the ease of creating digital jobs, resilience of governance and infrastructure, and foundational digital potential in these countries.

Kenya, with its high internet penetration rate of over 80%, has been at the forefront of the African digital revolution for the past decade. The country has been exploring various segments of the digital economy, including taxi hailing services, e-commerce, and blockchain, to create job opportunities and spur growth.

However, the study warns that Kenya's plan to tax mobile applications and internet usage could have a negative impact on the growth of online businesses and start-ups. The report suggests that such taxation could lead to a decline in economic activity by reducing the number of active internet users.

The study, titled 'Getting Lions to Leapfrog: Can Digital Technologies Deliver on Africa's Delayed Promise of Inclusive Growth?', used Kenya, Egypt, Ethiopia, Nigeria, Rwanda, and South Africa as case studies to provide insights on key drivers that could accelerate digital inclusion across Africa.

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