How Digital Services Are Improving Kenyans Lives
Kenyans
are known globally to be tech-savvy due to their fast adoption of new
innovations and the fact that the country has one of the highest mobile phone
penetrations in Africa.
The majority of Kenyans now say digital services
have improved the diverse areas of their lives, according to a new survey.
A report on Kenya’s Digital Economy by a
global advisory firm, Dalberg shows about 84 percent of Kenyans use digital
services such as sending and receiving money on mobile money, social media,
access to news, information, farming, government digital platforms, and selling
and buying online.
It adds that increasing adoption of digital
devices and services in the country are helping reduce the digital divide and
improving standards of living.
“Most Kenyans see a better quality of life
...and some see improved economic conditions as a result of using digital
devices and services. Unsurprisingly, the strongest impact that people
experience is a greater sense of connection (92 percent),” the report states.
“Many users also believe that digital services
support their individual needs. A sizable minority, 30 percent, have seen their
income increase,” it says.
The survey focused on 2,456 households across
the country.
Kenya’s digital economy has expanded over the
years due to internet access and high mobile penetration at 130.3 percent,
according to the Communications Authority of Kenya. Mobile subscriptions stand
at 62 million, more than the 47.5 million population.
This has deepened digital economy adoption
from basic use like sending and receiving money, buying data, and airtime.
Users have also upgraded to advanced services
such as education, entertainment, looking for jobs, farming, seeking government
services as well as health information.
The Dalberg report shows that 44 percent of
self-employed people and business owners use digital services to support their
businesses. Out of this, 86 percent use these services to communicate with
customers and vendors.
And while adoption of e-commerce remains low,
56 percent are aware of the services. However, retailers and shoppers prefer
the social media platforms such as Facebook with only 13 percent of Kenyans
using marketplace platforms like Jumia and Kilimall.
Other digital services are being utilised for
trade opportunities including payments, logistics, checking streets names and
asset recognition including mapping and tracking commodity ownership.
The research, however, reveals that the use of
digital services to support farming is still low as 45 percent of farmers are
not aware of the service. Just 13 percent use the service to support
livelihoods including communication with customers, vendors and suppliers.
About 10 percent use advanced services for
buying inputs and selling goods while 15 percent use it for knowledge sharing
and learning.
The report comes at a time when the country’s
deepening use of digital services has provided room for local and foreign
innovators and app creators.
This has seen adoption of start-ups such as
agri-tech app for farmers, DigiFarm; e-commerce platforms such as Jumia, Sendy,
Safeboda; financial products for savings and credit including M-Shwari,
M-Kesho, Branch, Tala; and ed-tech, such as Eneza that provides primary and
secondary academic materials.
“Kenya has established itself as a go-to
country for many start-ups looking to test and launch digitally enabled
products and services. Kenya has one of the most advanced agri-tech ecosystems in
Sub-Saharan Africa. Approximately 30 percent of the SSA’s agri-tech start-ups
operate and 18 percent maintain headquarters in the country,” the report
states.
“Many of these services are increasingly
benefiting individuals and businesses.”
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The government has also been aggressive in
digitising services such as visa application, tax returns with e-visa and i-tax
respectively, renewal of driver’s licence and business registration through the
e-Citizen online portal. The State has also set up Huduma Centres in counties,
in a move aimed at improving service delivery and increasing revenue.
Digitising government services is also
expected to enhance ease of doing business and increase global competitiveness.
Almost half of Kenyans 45 percent see digital
IDs improving their access to digital services, although it is yet to start
operating.
Thirty percent of the respondents have
experienced digital fraud.
About 96 percent of people in the rural areas
especially farmers, homemakers, older people and people with disabilities use
the phone for basic purposes of communication, sending and receiving money.
E-commerce users have highlighted lack of
precise street addresses, high delivery fees and product quality as the major
hindrance to use of digital services.
Also Read: CBK Gets Powers to Control Mobile Loan Rates
The uptake of digital health and education has
also been limited by inadequate resources in some households.
Only 15 percent of respondents are aware of digital
health, while 35 percent of those who are aware are using digital health
services mostly for consultation with health workers (50 percent) and payment
for services or medicine using mobile money (35 percent).
“Challenges with platform costs and lack of
trust limit usage. 30 percent of users of digital health services feel costs
are too high and 30 percent don’t trust doctors they don’t know and can’t see,”
it added.
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