The Kenyan government has earmarked a substantial sum of $125.3 million to bolster initiatives within the Information, Communication, and Technology (ICT) sector for the fiscal year 2024/2025. This financial commitment was disclosed by Kenya’s Minister for the National Treasury, Njuguna Ndung’u, during a parliamentary session held on Thursday.
The allocation is set to finance various government-led projects under the stewardship of the ICT ministry. Among these projects, $8.5 million is designated for the development of government shared services, while $5.4 million is allocated for the construction of a digital superhighway. Additionally, the Kenya Advanced Institute of Science and Technology, situated within the Konza Technopolis, will receive $17.7 million.
In a bid to accelerate the construction of the Konza Technopolis City, the Kenyan government has allocated $11.5 million for the first phase of horizontal infrastructure development and a further $40 million for the establishment of the Konza Data Centre and Smart City Facilities, as outlined by Minister Ndung’u.
The government has also set aside $21.6 million to support the Kenya Digital Economy Acceleration Project, which aims to fast-track the country’s digital economic growth. An equal amount of $21.6 million is dedicated to the upkeep and modernization of the Last Mile County Connectivity Network.
Minister Ndung’u emphasized the significance of investments in the digital superhighway and the creative economy, noting their pivotal role in driving the government’s bottom-up economic transformation agenda by enhancing productivity and competitiveness.
He also highlighted that these investments are instrumental in creating employment opportunities for the youth.
Despite the challenges faced by the government’s digital loans initiative, the Hustler Fund, which has seen $76.8 million in defaults since its inception in 2022, the fund has been allocated $38.4 million for the upcoming year. This represents a nearly 50% reduction from the previous year’s investment of $76.8 million into the fund.
The Hustler Fund was established with the objective of expanding financial inclusion by providing responsible finance options to individuals, as well as micro, small, and medium-sized enterprises (MSMEs).
