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Opportunities lurking in Kenya’s digital economy

Opportunities lurking in Kenya’s digital economy

Dalberg, a leading social impact advisory firm, has put out an in-depth study of Kenya’s digital economy facilitated by the Omidyar Network, an impact investment firm that funds entrepreneurs tackling the world’s most pressing challenges.

The fifty-four-page report that reached a scientific sampling of 2,400 Kenyans is chock-full of insights that policymakers, owners of capital, current and aspiring entrepreneurs should assimilate to either inform their improvements on current offerings or greenfield pursuits.

Two stood out for me, which would serve any industry well if unpacked for each context.

Youth and women have a high appetite for digital services. However, the majority are restricted to the usage of basic services across their spectrum of needs. To the casual eye, this may not be evident especially if one is an urban resident where at every turn one can spot a ‘smart enough’ mobile device in use.

On signaling, direct interventions by other market players such telecommunications cum technology firm Safaricom point to this opportunity where they see an empowered youth and women segment as an integral part of their future growth supported by the 2C’s – communication and commerce.

Financial services – given the high percentage – 94percent of consumers who use mobile money, FMCG retail that plugs into commerce, and logistics that carry big employment or income-generating dividend for these two demographics are the places I would place bets on as high growth for tailored services and products outside what currently exists.

Connectivity comes next. Beyond basic usage of digital services, the pulse points to a growing need for connectivity to fulfill the need for education, entertainment, job search and placements, and consumption of critical day-to-day services such as those offered by the government.

The key take here is that while we have adequate mobile phone network coverage as informed by the Communications Authority, the cost of access is still a barrier for the majority population, even as more upgrade from feature phones.

A personal experience on a project in partnership with the KCB Group under its Foundation confirmed this. Service providers upskilled under the 2jiajiri programme toggle their mobile data on and off, even where this is the best channel for them to receive job alerts on the on-demand platform.

The ubiquitous, highly utilised mobile channel – USSD carries a cost. One can be locked out of an opportunity because they did not have one shilling to dial in and engage. We need models where the cost of […]

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