Information and Communication Technology (ICT) in Kenya: Exploring the possibilities of a prosperous market

Abstract

Information and communication technology (ICT) has reportedly enabled the world’s poorest, living at the bottom of the income pyramid, to earn an income, solve conflicts, reduce isolation and has assisted in emergencies. Kenya is one of the most advanced nations in Africa with a high level of technological development. The advancements in the ICT industry have been singled out as key drivers for Kenya’s economic prosperity and have helped to alleviate poverty. The primary purpose of this thesis is to develop an understanding of Kenya’s technological advantage in East Africa and to explore why multinational companies would prosper from a growing ICT usage at the bottom of the pyramid (BoP). The secondary purpose, serving to support the primary objective, is to create a clear insight into the conditions that are necessary to develop this advantage. The thesis seeks to answer two different research questions: First, what enables or prevents multinational companies in the ICT sector to enter the Kenyan market? This question is posed in order to understand what companies evaluate when entering into BoP markets. Second, which factors and/or conditions give Kenya an advantage for ICT establishment in East Africa? Taking into account the macroeconomic factors needed for an industry to thrive. These questions have been answered with the support of a blend of primary and secondary sources including, documents, statistical data and interviews. The research approach has been deductive and triangulation has been used in order to ensure coherency, accuracy and trustworthiness. The thesis concludes that there are many reasons for companies to enter the Kenyan BoP market. However, there are many changes that need to be made in order to continue attracting foreign direct investment and to sustain the current development. The thesis further concludes that Kenya has several competitive advantages over other East African nations, which have enabled Kenya’s ICT sector to flourish.