Google cements its role in Kenya with Sh116bn boost

Kenyans’ use of Google services helped unlock up to $900 million (Sh116.7 billion at current conversion rates) in economic value during the year to last December, underscoring the American tech giant’s deepened contribution to the country’s productivity.

A report published by the tech firm shows that during the period, Kenyans recorded enhanced work productivity and efficiency through avenues such as the search tool, YouTube, cloud, advertising, Android and Google Play.

“Google Search, Google Play, Android, YouTube, Google Cloud and Google Advertising helped provide an estimated $900 million of economic activity for businesses, non-profits, publishers, creators and developers across Kenya in 2023,” wrote Google in the report.

In its estimation, every $1 (Sh129) invested in technology will return over $5 (Sh646) for the wider economy by 2030, while deployment of artificial intelligence (AI) capabilities could expand Kenya’s economy by $2.4 billion (Sh310.2 billion).

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Last year, Search emerged as the most helpful tool offered by the firm, with an estimated 300,000 young adults in Kenya having learnt a new digital skill through Google Search while Google Cloud saved Kenyan businesses over 7.6 million hours through the year.

A combination of Google Search and Google Workspace helped knowledge workers save over 5.5 million hours a week, which the firm says was equivalent to a $608 million (Sh78.6 billion) improvement in productivity for the economy.

“Sixty-six per cent of online adults strongly agreed that Google Search was essential to their daily lives, and 58 per cent agreed that Google Search saves them time,” reads the report.

Google also reports that 68 per cent of online businesses, which are less than five years old agreed that the costs of starting a business had reduced substantially due to the use of Internet tools, including Search, Gmail, Google Docs, Google Workspace and Google Business Profile.

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Online companies also reported that Search, Maps and Paid Search Advertising were among the most effective ways that they connected with customers, with 70 per cent of online adults saying they had used Google Search or Google Shopping to find a local business in the last month.

“On average, companies reported that around 15 per cent of their new customers find them through Google Search,” said the technology firm.

In the creator economy, 54 per cent of surveyed creatives reported having successfully monetised the content they upload to their YouTube channels, while 66 per cent agreed that YouTube had helped them to pursue their entrepreneurial ambitions.

In supporting software developer talent, Google estimates that its operating system Android as well as its mobile apps distribution platform Google Play Store have saved app developers in Kenya over 78,000 days in development time which is an equivalent of $2.7 million (Sh349 million) in reduced development costs.

“Google Play Store’s large footprint allows Kenyan developers to tap into a vast market of 2.5 billion users across the world, who in turn make over 140 billion downloads a year,” the firm notes.

“Overall, in 2023 we estimate the Android App Economy generated over $5 million (Sh646.95 million) in revenue for Kenyan developers, while the Android developer ecosystem is supporting over 16,500 jobs across Kenya.”

By moving computing workloads to Google Cloud, a tool that’s currently adopted by only 17 per cent of local firms, the tech giant estimates that Kenyan businesses have prevented almost 5,000 tonnes of carbon emissions.