Sh52 billion World Bank funding to expand internet in rural Kenya
A roll of internet cables as pictured in South B, Nairobi, on March 9, 2022. The World Bank notes a persistent digital divide in access to broadband, digital public services, and skills that individuals and businesses need.
What you need to know:
- Under the Kenya Digital Economy Acceleration Project, the financing is also targeted to improve the delivery of selected government services and build skills for the regional digital economy. Phase one of the programme runs from 2023 to 2028.
- World Bank Country Director for Kenya, Rwanda, Somalia, and Uganda, Keith Hansen, said the multilateral lender targeted growth of jobs besides improvement in service delivery and expanding the digital marketplace through the programme.
Kenya has received Sh52 billion($ 390 million) from the World Bank in financing to expand access to high-speed internet and improve the quality and delivery of education in the country, which will increase broadband network coverage for over 70 percent of Kenyans in rural areas.
Under the Kenya Digital Economy Acceleration Project, the financing is also targeted to improve the delivery of selected government services and build skills for the regional digital economy. Phase one of the programme runs from 2023 to 2028.
Phase two, which will concentrate on building a data-driven and secure environment for enhanced digital service delivery and innovation for the regional digital economy, will run from 2026- 2030.
“The project will also mobilise an estimated US$100 million (Sh13.36 billion) in private capital by crowding in the private sector for broadband infrastructure development,” read a statement from the World Bank on Monday.
World Bank Country Director for Kenya, Rwanda, Somalia, and Uganda, Keith Hansen, said the multilateral lender targeted growth of jobs besides improvement in service delivery and expanding the digital marketplace through the programme.
“Broadening access to digital technologies and services is a cross-cutting pathway to accelerate economic growth and job creation, improve service delivery and build resilience. The Kenya Digital Economy Acceleration Project aims to help make Kenya’s growth more equitable growth by shrinking disparities in digital skills and connectivity and expanding the digital marketplace,” he said.
The lender notes that there still exists a persistent digital divide in access to broadband, digital public services, and the skills needed for individuals and businesses to thrive in an increasingly digitized Kenyan economy, despite strides made so far.
It also says that to compete as one of the premier digital investment and innovation hubs on the African continent where other countries would benefit from access to her innovation and services, Kenya needs the economies of scale and network effects of a larger and more competitive regional market.
“The initiative will increase Last Mile connectivity by boosting broadband network coverage for over 70 percent of Kenya’s population that resides in rural and underserved areas,” said Tim Kelly, Lead Digital Development Specialist, at World Bank.
The multilateral lender also said that the project will increase access to broadband through the expansion of the fiber backbone and last-mile connectivity to government and learning institutions as well as along Kenya’s borders with its neighboring countries, benefiting the regional digital market.
The World Bank said the project aims to strengthen Kenya’s capacity to drive regional digital integration with positive spillovers to other countries.
“Expanded access to connectivity will also reduce the need for travel to access information and services thereby minimising the carbon emissions footprint, and facilitate service delivery in times of emergencies, requiring remote operations,” it stated.
