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SURVEY OF EMERGING

TRENDS
IN
INFORMATION AND
COMMUNICATION
TECHNOLOGY (ICT)
IN KENYA

PRESENTED BY
CALEB NGANYI OGWAYO

DATE DUE:
31ST MAY 2010
ABSTRACT
The ever improving sophisticated technologies have
brought about changes across the dynamite human population
making it possible for people to take pleasure in any aspect of
communication. To many, it is a daily necessity which one cannot
do without. The main purpose of undertaking this research was to
find out the perception in Information Communication Technology
(ICT) towards the Kenya communities. Survey method was
employed in undertaking the research. Questionnaires were
distributed to the respondents and later retrieved; data was
tabulated using the Microsoft software packages.

This research will enable employees across the various


fields to check and reconsider undertaking prioritization so as to
minimize costs involved in within their organizations.
ACKNOWLEDGEMENT

First I would like to thank the Almighty God for his love and
mercies for keeping us safe and healthy. I would also like to thank
those who supported me throughout the course of this project, without
their time and effort; this endeavor would not have been possible.

I extend my heartfelt gratitude to my family members for their


support during my studies. I would also like to thank those who agreed
to be questioned or interviewed, for without their time and
cooperation, this project would not have been possible. To each of the
above i extend my deepest appreciation and sincerest thankfulness
may God’s blessing rest upon you all until the end of time. Amen
DEDICATION

With all my love to my treasured parents; Mr. /Mrs. Joseph


Ogwayo Likalama, to my cherished friends and family members.
TABLE OF CONTENTS
Preliminary pages

pages

Title sheet

Abstract…………………………………………………………………………………
………………. i

Dedication………………………………………………………………………………
……………… ii

Acknowledgement……………………………………………………………………
……………. iii

Table of
contents…………………………………………………………………………………
… IV

List of tables and


charts………………………………………………………………………….
v

1 THE PROBLEM
1.1
Introduction……………………………………………………………………………
1 1.2 Background to the
study………………………………………………………… 1 1.3
Statement of the problem………………………………………………………
1 1.4 Objectives of the
study…………………………………………………………… 1 1.5
Research questions…………………………………………………………………
2 1.6 Significance of the
study…………………………………………………………. 2 1.7
Hypotheses………………………………………………………………………………
3 1.8 Scope and
limitations………………………………………………………………. 3
1.9 Definition of
terms…………………………………………………………………… 4

2.0 LITERATURE REVIEW


2.1
Introduction…………………………………………………………………………
…… 5

2.2 ICT in
Education…………………………………………………………………………
5

2.3 ICT in
Enterprise……………………………………………………………………
…. 7

2.4 ICT in Health


services…………………………………………………………….….
8

2.5 ICT in Poverty


reduction……………………………………………………….…..
9

2.6 ICT in
Entertainment………………………………………………………………
… 10

2.7 ICT in the Kenyan


Government………………………………………………… 12

2.8 A Review of developing sectors in ICT field in Kenya


……………… 12

2.9 A Review of Kenya’s ICT position in 2009


…………………………….. 15
2.10
Conclusion…………………………………………………………………………..
18

3.0 METHODOLOGY
3.1
Introduction…………………………………………………………………………
19

3.2 Area of
study…………………………………………………………………………
19

3.3 Research
design……………………………………………………………………
19

3.4 Study
population…………………………………………………………………
20

3.5 Data collection


instruments………………………………………………… 20

3.6 Research
framework…………………………………………………………… 21

4.0 DATA PRESENTATION, ANALYSIS AND INTERPRATATION


4.1
Introduction…………………………………………………………………………
22

4.2 Data
analysis…………………………………………………………………………
22

5.0 SUMMARY CONCLUSION AND RECOMMENDATIONS


5.1
Introduction……………………………………………………………………………
31
5.2 Summary of the
findings………………………………………………………… 31

5.3
Conclusion………………………………………………………………………
……… 32

5.4
Recommendations……………………………………………………………
……. 32

5.5 Suggestions for further


Research…………………………………………… 33

6:
BIBLIOGRAPHY………………………………………………………………………………
………… 34

7: APPENDICES
a) Questionnaires
……………………………………………………………………………. 35

b) Interview……………………………………………………………………………
…………… 36

LIST OF TABLES AND CHARTS

TABLES
3.1- Employees’ population
profile……………………………………………… 19

4.1-Employees general
profile……………………………………………………… 22
4.2- Profile of Eldoret
employees………………………………………………… 22

4.3- Profile of Eldoret


employees………………………………………………… 23

4.4- Profile of Eldoret


Employees………………………………………………… 24

4.5- Amount spending based on


Gender……………………………………… 24

4.6- Amount spending based on Residence


status………………………… 25

4.7- Amount spending based on Employment


status……………………… 26

4.8- market growth based on knowledge economy........................... 28

4.9-Tabulation of different Telecommunication Network’s market shares... 29

CHART
4.1- profile of male and female
employees……………………………………………… 23
4.2- profile of employees residence
status……………………………………………… 23

4.3- profile of employees’ employment


status……………………………………… 24

4.4- Amount spending analysis based on


gender…………………………………… 25

4.5- Amount spending analysis based on Residence


status…………………… 26

4.6- Amount spending analysis based on Employment


status………………… 27

4.7- Analysis of industry performance in


Kenya……………………………………… 27

4.8- Analysis of market growth as at January 2007 to date....................... 28

4.9- Analysis of ICT infrastructure as from 2009 to date.......................... 29

4.10 Analysis of Network market share based on Kenya………………. 30


CHAPTER ONE
THE PROBLEM
1.1 Introduction
Kenya is currently under-going a massive transformation,
whilst many options are being produced, harnessing the power of
information and communication technology (ICT) which stands a better
chance of success. Indeed, we are persuaded that the resilient
ubiquitous, robust, distributed and fast ICT tools not only hold the key
but also the means of reconfiguring Kenya.

1.2 Background to the study


Within the last couple of years ICT has
grown into a multimillion market in Kenya and all over the world. Many
people perceive that having ICT is a requirement in the day-to-day
living to some. The rise of new technologies and the improving living
standards has always affected people’s perceptions towards the use of
mobile phones as explained by Macharia (2009). As much as being
very essential in life communication should not be viewed as
something which one cannot do without. Kimutai (2009) brings out a
clear understanding on the impacts of ever-changing improved mobile
phone technology with the introduction of new services that will ease
and make comfortable for mobile subscribers to conduct their day-to-
day activities. This research is geared towards the establishment of a
true picture on the way in which different categories of ICT has
emerged in Kenya. This research will enable the various employees
under various docket have a clear understanding on how ICT is used on
day-to-day basis.

1.3 Problem statement


The ICT and the overheads of related services
remain high year-in and year-out with many people across the different
economics and social spheres of life perceive it as a common daily
needs. The working class in particular may not realize how
consequential it might be if one doesn’t undertake effective
management of ICT and other related outlay.
1.4 Objective of the study
o To determine the spending behavior of employees on ICT.

o To determine the spending behavior of employees across various


job categories.

o To determine if there is significant difference between male and


female employees in ICT.

o To determine how much on average the employees spent on ICT


on a weekly basis.

o To determine the market growth of each of the different firm in


Kenya.

o Establish a way of encouraging employees to consider using the


ICT channels services

1.5 Research questions


1. What is the profile of the employees in Kenya when they are
classified into gender, residence status and employment status?

2. What are the significant characteristics of employees spending


when they are classified into gender, residence status and
employment?

3. What is driving demand for ICT in Kenya?

a) ICT industry performance

b) Knowledge economy

c) ICT for development

d) Telecommunication

1.6 Significance of the study


1) To the researchers
The research will enable the researchers to have a broader ideas in
the field of research equipping them with adequate research skills,
competence and know how in undertaking any research works

2) To the employees

This research is of much importance to the employees in that it will


enable them have a clear understanding on how they use on ICT.

3) To the community

This research will benefit the community by influencing the


attitudes of the employees on the importance of making use of
relevant priorities in terms of using ICT anywhere.

1.7 Hypothesis
HO1 : There is significant difference between the male and female
employees on ICT.

H02 : There is significant difference in the spending on ICT between


the residence status i.e the rural and urban status.

H03 : There is significant difference in the amount spent on ICT


between employees across the different employment status.

1.8 Scope and limitations


a) Geographical area

The area of my research was around the Eldoret town in Kenya


and around the neighbor of Eldoret town and villages

b) Resources

It was difficult to obtain all the resources I wanted to accomplish


my project. These included, getting information from the employees.

c) Time
The time to administer the interviews was equally difficult and
searching for more research resources was challenging.

1.9 Definition of terms


3G technology: Convergence of various wireless telecommunications
systems into a single uniform global system which includes terrestrial
and satellite components in its functioning.

Administrators: Employees who are responsible for the daily running


of management and administrative work.

Airtime: Monetary term of the amount of time one spends when


communicating through a phone.

M-Pesa: Electronic money transfer service offered by the safaricom


network.

Safaricom, Zain, Orange, and Yu: Mobile service providers in


Kenyan market.

Zap: Zain’s electronic money transfer service.

Yu Cash: Yu’s electronic money transfer service.


CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Introduction
This chapter presents a review of literature so as to provide
insight to what has already been carried out in this field of study. It
also formed the basis for analyzing and interpreting the data collected
from the field. Literature related to this study was review from books,
newspapers, internet materials, articles, periodicals and journals.
Literature related to this study was reviewed to get opinions
and views on the following main topics about ICT in Kenya.

3 ICT in Education

4 ICT in Enterprise

5 ICT in Health services

6 ICT in Poverty reduction

7 ICT in Entertainment

8 ICT in the Kenyan Government

2.2 ICT in Education


Education is one of the key pillars of civilization, ICT opens a new
chapter in education altogether. Technology enhanced education can
provide students with information and learning opportunities that are
not possible with text-books and teachers alone. Access to technology
can help narrow the gap between students who are the achiever and
those who are not. The vision of Kenya’s ministry of Education is
‘’Quality Education for Development. Its mission is to provide, promote
and co-ordinate life long education, training and research for Kenya’s
sustainable development. The power of ICT in education lies in its
capacity to support digitized hypertext including visual images,
sounds, animations and video (hypermedia). These unique properties
have huge ramifications for learning.

The benefits of ICT in Education:-

• No physical boundaries – This implies learners do not have


to be physically near the schools to access education.

• No time limitations – Access to ICT supported education


programmes is timeless, this means that students and
teachers can work at their own pace.

• Adequate learning materials – ICTs have enabled the


compilation and publication of vast learning resources
which are accessible at the click of a button.

• Collaboration – ICT backed systems can enable high levels


of collaboration between the students and the teachers,
teachers and teachers, students and students, This is
mainly because ICT enables fast, reliable, interactive and
real time communication through both synchronous and
asynchronous models.
• Research – The use of ICT in schools enables students to
develop research skills and be able to work independently
yet collaboratively.

• Motivation – In and of itself, use of ICT can be of great


motivator to get students to learn and explore. It
encourages independence and autonomy that is important
for students to achieve in their learning process. Class, race,
ability and disability hinderances are removed when a
student is online.

E-Learning in the secondary school environment

E-Learning in Kenya secondary schools:

Opportunities and challenges

To some it connotes distant, face-less teachers and face-less


students, online tutoring and online examination and certification. Yet
to others it brings to memory opportunities made available by modern
electronic tools supported by the internet and related technologies that
have revolutionized teaching and learning in hitherto disadvantage
communities.

Electronic learning rides on modern information technology to


provide learning materials, interaction for teachers and learners,
student evaluation mechanisms as well as learning institutions
management support.

Major benefits of electronic learning

The major benefits lie in its ability to bring to the class rooms or
even homes rare resources and facilitate self-paced learning
opportunities for the students.

Projects currently on going to introduce e-learning to Kenya schools


are as follows:-

1. Computer for schools

2. The NEPAD e-school initiative


3. Cisco Academies

To successfully set up a favorable, e learning ecosystem in a


secondary school environment, one needs the requisite equipment
which includes:-

a) Computer(s)

b) A projector

c) ICT Literacy

d) Internet connection

ICT in schools through learning initiatives can be used to:

o Make available syllabi

o Provide copies of course materials

o Provide research links to further readings

o Develop a presentation of the knowledge learned

o Provide online evaluation instruments

The future of education in Kenya must include the integration of ICT.

2.3 ICT in Enterprise


The impact of the emerging revolution on business is best
captured in the concept of electronic commerce, fondly known as e-
commerce this has opened flood-gates of opportunities for business
transactions. It is touted as the grand panacea to all problems and
challenges facing modern business. This enables fast, affordable and
transparent exchange of goods and services locally, regionally and
globally leading to reduction in operations costs and remarkable
increase in profits and markets.

Though it is very difficult to define this concept, there is a general


consensus that e-commerce is the process of conducting business
communication and transactions online through the use of ICT tools. A
further mutation has also introduced a new dimension to digital
business: collaborative commerce. Basically, collaborative commerce,
also known as Inter-Enterprise integration, is the use of internet
technologies to integrate a company’s core business processes with
those of its customers, suppliers and business partners. This
integration enhances the ability of the companies to effectively
communicate and cooperate with one another as part of a
comprehensive value-added chain of suppliers, consultants, customers
and even employees. The collaboration occurs in spheres such as
exchange of ideas, information and product data as well as the
conclusion of business transactions. Collaborative commerce requires
implementing cascading transparency of information across the supply
chain and sharing business-critical data with the customers and
partners.

The major benefits of e-commerce, whether fixed, mobile or


collaborative, can be lumped into efficiency, intelligence and
availability.

These result from the digitization of the business communication


and processes which provides opportunities for one to one marketing,
automation of crucial tasks such as payment transactions as well as
extraction of business intelligence information. For businesses
operating online, these benefits result in access to expanded markets,
reduced costs of business (minimal marketing, distribution, product
development, order processing, supplies, staffing, 24/7 business hours
and telecommunication costs), increased sales and profits.

E-commerce is complex but encompasses entire processes of


electronically marketing, selling/buying, paying/being paid for and
distributing services and goods world wide. There are three main
spheres of e-commerce:-

1. B2C- Business to consumer transactions involving trade between


consumers and businesses.

2. C2C- Consumer to consumer trade.

3. B2B- Business to business transactions.


ICT through e-commerce can make this possible. It will only facilitate
business efficiency, intelligence and ubiquitous service/product
availability but will also create direct and indirect jobs as well as novel
investments opportunities.

2.4 ICT in Health services


Healthcare is one of the leading issues developing to develop
socio-economic development in Kenya today. Lack of information on
treatments and disease management is often an underlying issue that
hinders effective patient care and disease prevention. ICT can enhance
health services and can be used as tool for collecting community
health information to support decision-making; improving doctors’
access to current medical information; and linking health care
professionals so they can share information and knowledge; and
enhancing health administration, remote diagnostics and distribution
of medical supplies. There are many cases where ICT is already taking
the central role in the provision of health services both in Kenya and
abroad. However, there is urgent need to cover more health matters
and reach more people.

2.5 ICT in Poverty reduction


Poverty is one of the threats to dignified enjoyment of national
freedoms. Economic statistics show that a majority of Kenyans live
below the poverty line i.e spending less than a dollar a day. ICT helps
Poor community in Rural Kenya and provides them with Market
Information on how to engage themselves in reducing poverty. ICT as
a tool in poverty reduction was proposed by the ERS in Kenya. That
sets out using ICTs for Poverty Reduction and Environmental Protection
in Kenya focusing on the IT component of Kenya's national policy, the
wide-ranging in regard to ICT access, e-education and poverty
reduction

Crosby mwanza, a renowned African communication researcher


and consultant, identifies five ways ICT can be used to fight poverty:

o To facilitate the convergence of local and global knowledge and


disseminate it to the rural areas so as to improve economic
production capacity in the settings in which many of the poor
live.

o To support the documentation of the hybrid knowledge


developed from the convergence into explicit knowledge
components which are easy to transmit and store.

o To enable the modernization of agriculture practice so as to


improve yields, processing, marketing, sales and storage of the
harvest.

o To facilitate fast, reliable and affordable means of communication


and exchanges.

o To provide new investments and revenue streams through


establishment of telecommunication centers and other digital
ventures.

The role of ICT in rural development

ICT as an investment opportunity in the rural areas through


digitization will unlock great business potential. Digital shops will
sprout in all corners and with them massive local, regional and global
business opportunities previously untenable. While current village
entrepreneurs can only have retail shops, the same shops will diversify
operation and services with the adoption of ICT. With ICT integration,
they will also be able to provide knowledge services such as content
creation, organization, searching, retrieval, repackaging, dissemination
and storage. This will result in more profits and hence greater wealth
creation and poverty reduction in these areas. ICT brings global market
to the rural areas.

2.6 ICT in Entertainment


Napoleon recognized this when he stated that the right
information at the right time is 9/10 of any battle. Given that ICTs are
used to create, organize, store, disseminate and use knowledge. ICT
has opened new horizons for applications and benefits that were
hitherto unimaginable. Communication systems that were once
capable of carrying only one type of message can now carry a range of
signals. Telephone, cable and satellite systems can all be used to
transmit television, telephone and computer data. Similarly, the
internet and the WWW that emerged purely as textual media today
have expanded to cover audio and visual media enabling
unfathomable online communication and online games for
entertainment.

Many forms of ICT exist in the modern market place. Computers,


the internet, the World Wide Web(www), radios, television, satellite
systems, telephone systems(fixed line and mobile), digital cameras,
scanners, portable digital assistants(PDAs),personal electronic
organizers, hand held devices, networked system, pagers and beepers
are some of the technology tools that the concepts of ICT
encompasses.

Men and in particular, young men have traditionally dominated


domestic personal computers usage and this is hardly surprisingly
given the early focus on computer games. Women make far greater
domestic use of the telephone both in terms of the number of calls and
their duration, this implies to mobile users

Students and non students in institutions of higher learning have


perfected the art of milking technology for all it can produce. To start
with the technological gadgets used by students come in different
forms and specialties. A walk within these institutions will tell of a large
population of students owning computer laptops, desktops in their
rooms, and GPRS enabled mobile phones from where they can access
Internet services. Also in this category are music gadgets like IPods
and music system.

The Moble phones, the 3G Technology, and computers

The development of the mobile communication industry as


to date been largely driven by the decisions of suppliers and
regulatory frameworks. This is demonstrated by the evolution of
several generations of mobile communication technology from
the simple analogue voice only services of 1970’s and 1980’s to
the digital multimedia voice and data services of the present day.
The changes in technology have been generally appreciated by
users in that they have brought entertainment to their life. The
current transition to 3G capabilities and its potential new
products and services is yet another example of new technology
needing to find new applications. Vincent et al (2005) argues that
people will expect to use their 3G products and services to meet
their every day needs but this services has to build upon the
ways in which they have always conducted themselves. For
example, a mobile user may want to talk to other people, mainly
friends and family, the difference being that they may now want
to enhance this with text, taking pictures and possibly video too.

It has been argued that the emotional responses that


people have to their mobile phone are a likely key influence
on their future adoption of new services. This emotional
attachment appears to extend to the familiarity of some
services on their device, such as favorite game and
ringtones. (Vincent et al October, 2005)

Computers are likely more in usage by employees of different


background, computers in homes, work place, and cyber café are used
to access many different options, they are used to access internet to
chat online, listen music, send message with e-mails, and play games
online and a lot of more entertainment.

2.7 ICT in the Kenyan government


This refers taking the Kenyan government on-line. E –
government which is a department at the office of the president
responsible for developing systems that enable the government
services to be delivered all over the country using technology. The
project started in 2004 and has managed to create a web site for all
the ministries, initiate the fiber optic cable project amongst other
initiatives this refers to the use of a range of information technologies,
such as Wide Area Network (WANs), internet and mobile computing, by
government agencies to transform government operations in order to
improve effectiveness, efficiency, services delivery and to promote
democracy. Basically the use of information technology is to support
government operations and provide investments that are needed in
people, tools, and policies, processes to engage citizens and provide
government services.

E – Government priorities and implementation strategy

According to the National ICT policy document, the main aim of


Kenya’s e-government strategy was to help the government meet its
overall goal of being “more result-oriented, efficient and citizen
centered”

Through the website, citizens will be able to access government


services and information efficiently and effectively and even
participate in the governance of the country.

A REVIEW OF DEVELOPING SECTORS IN ICT FIELD IN KENYA


By all measures, 2009 was a very key year for the information
and communication technology (ICT) sector in Kenya. So much
happened in a relatively short period of time that will be massively
define ICT in Kenya for the coming years, I have listed some of that I
have come across during my research, they are as follows:-

Kenya data network (Boosting wireless communication)

Having their logon as a butterfly, butterfly is not a product but a


lifestyle developed by Kenya data network to provide broadband
wireless connectivity to the internet and local network from Nairobi.

Allows stand alone palmtop and desktop computer with wireless


capability to remotely connect the network from anywhere any time. It
offers triple play service (data, voice and video) making it a convenient
one stop communication solution for individuals and organizations

Virtual city (customizing business solutions)

Established in 1999, virtual city has grown from her days as a


web service company to a business solutions provider offering a wide
range of products from management of Electronic commerce and
mobile commerce to knowledge management systems. The company
prides herself in keeping up with the fast paced and dynamic
technology solutions to her clients.

The business center model simplifies business transactions by


incorporating the various business needs and solutions into one
composite module. With this model, companies are able to expand
from just basic data input and output computing to conducting fully-
fledge business transactions online. The model combines e-commerce
solutions, knowledge management solutions, and cashless transaction
processing solutions.

Computer pride (information technology training facilities and


opportunities)

It offers numerous market-oriented courses, it helps students


learn computers with skills and know-how that are up to date and give
them a leading edge in the market. Computer pride expects to stretch
its already broad clientele with concerted efforts to take ICT to the
rural areas.

Taurus Business System (automating business procedures)

Taurus is a software development company that strives to build


business automation solutions to fit their clients need.

Digital age institute

A software development house, Digital Age Institute Limited


focuses on two main areas; training young Kenyans in software
development and creating software for out sourcing.

Kenya ICT Board (Information regarding how to open a digital


village project)

The k (ICT)B a state corporation is implementing the digital


village project (DVP) under the Kenya transparency communication
infrastructure project (KTCIP) which will see the establishment of a
network of digital information facilities across the country.

This DVP is an integral part of an innovative public private


partnership (PPP) for taking ICTs to the rural communication in Kenya.

It seeks to harness the vast untapped potential of the rural sector


by making ICTs more accessible and affordable to the wider population
through the development and utilization of ICT facilities in the rural
areas

Kenya Law Reports (moving justice into the electronic age)

The Kenya law reports website is published by the national


council for law reporting which is a corporate body established by the
National Council for Law Reporting Act, 1994

Categories of KLR website

o Case search - the door to a comprehensive database of judicial


opinion of Kenya’s High court and Court of Appeal.

o Laws of Kenya – Africa’s first and only free, full text database of
national legislation.

o Kenya gazette – A weekly synopsis of recent government


appointment and legislation passed by parliament.

o Bench Bulletin – A bi-monthly digest of recent developments in


case law and legislation.

o Parliament – Selected editions of the parliamentary hansard

A Review of Kenya’s ICT Position in 2009

In a nutshell, and in retrospect, below is a comprehensive review of what happened in


2009:
TEAMS and SEACOM Go Live.

• Kenya has finally got broadband internet connectivity through the SEACOM and
TEAMS high speed undersea data cables. Both cables went live in the second half
of 2009 and since then we have noted impressive improvements in internet speeds
and reliability. However, the biggest caveat (still) is that Internet access remains
largely expensive with pricing dropping only marginally, even as Internet Service
Providers (ISPs) have much lower costs as they move from satellite-based
internet access. Going forward, the main ICT sector that is expected to gain from
the low-cost and high speed cables is outsourcing. Prior to the cables going live,
the cost of access was as high as 10 times as much on satellite links. The savings
are expected to make Kenya’s outsourcing globally more competitive and
profitable.

Controversial ICT Bill Is Approved.

Earlier in 2009, the Kenya ICT (Media) Bill was passed. The ICT Bill makes
provisions for e-commerce and digital signatures which are key for enabling online
business in Kenya. At the same time, the ICT Bill provides for a broader range of
provisions that will deal with risk areas such as online fraud and piracy of intellectual
property. All things considered even as the ICT Bill has some controversial aspects
especially in the Media sections, the overall benefits for ICT far outweigh the potential
downsides.

Mobile Money Goes Mainstream.

2009 was the year that mobile money really took off. The shift to mobile money
was largely dominated by Safaricom’s M-Pesa service which is the pioneer and market
leader. Zain also launched its ZAP mobile money service in 2009 where it was
significantly late to the mobile money party as M-Pesa is now the fast mobile money
service in Kenya. At the very end of 2009, YU launched its yuCash mobile money
offering which is based on the global Obopay service. 2009 also saw mobile money being
unanimously endorsed by the business community as they signed up for M-Pesa. Even
Banks who we’re the largest opponents of M-Pesa in Kenya are integrating mobile
money into their offerings. Going forward, the next big wave for mobile money in will be
the adoption of Internet-based services that will could ultimately drive e-commerce in
Kenya.

Mobile Internet Gains Massive Adoption.

2009 will be remembered as the year that the mobile internet went main stream.
Statistics from last year confirm that the mobile internet is growing at a torrid pace as
users opt to ditch cyber cafes and fixed line internet for mobile internet access. This trend
was largely driven by Safaricom’s massive campaign to market its 3G offerings
throughout Kenya – largely succeeding in the process. However, at the end of 2009, Zain,
YU and Orange have also been aggressively pushing their mobile internet offerings
although none of them have 3G yet and are still on the slower GPRS and EDGE services.
Going forward, a major area of contention will be the expensive license fees for 3G in
Kenya which currently stand at US$ 25 million. This fee needs to drop urgently if widely
available and more cost-effective 3G mobile internet access is to take off.

Government’s 2009/10 Budget Gifted ICT in Kenya.

The 2009/10 Budget as announced by the Ministry of Finance in June 2009 gifted
the ICT sector with lots of benefits. Firstly, tax was removed from digital and video
cameras. Mobile phones we’re made exempt from value added tax (VAT). K.shilings. 1.3
Billion was allocated to the establishment of mobile computer labs country-wide. ISPs
we’re allowed to offset taxable income against the cost of purchasing internet bandwidth.
Wear and tear on telecommunications infrastructure was increased from 12.5% to 20%.
Tax was also reduced on purchasing certain types on computer software. Therefore, in a
nutshell, the 2009/10 budget was designed to give ICT in Kenya an edge for the coming
years.

“Local Content” Became The New Buzz Phrase.

In 2009, one could not talk about ICT in Kenya without the inevitable mention of
local content coming up. This is a key issue since although Kenya has over 18 million
mobile users and 4 million internet users; the bulk of digital content they access is
international and not local. The opportunity therefore for the development, distribution
and monetization of local content is potentially huge and everyone is trying to get a piece
of the action. What remains to be seen in 2010 (and the years to come) is how many will
succeed and fail in the process – I suspect we will see something that will mirror the dot-
com bust and boom that happened in the US a decade ago as everyone rushes for local
content gold.

Digital TV Starts Broadcasting.

One of the last major milestones for ICT in Kenya for 2009 was the launch of
Digital TV (DTV). DTV will revolutionize television broadcasting as we know it in the
coming years since its highly efficient and interactive. The opportunity to reach more
audiences and also reduce the cost of broadcasting should appeal to many businesses
operating in this space. Currently, only a few TV networks in Kenya are broadcasting
using test DTV signals in Nairobi and other locations in Kenya. Full adoption of DTV
will take a good number of years although Kenya is one of the first countries in Africa to
adopt the standard.
Social Media Grew Up.

In 2009, social media moved from the sideline to the mainstream in Kenya. 2009
saw social media move from being a novelty that engaged the youth to a movement that
saw businesses take notice. On many ranking services on both the mobile web and p.c.
web, social networks have become some of the most trafficked internet destinations in
Kenya. Brands are taking notice and the mean age for users is getting more and more
adult every day. This trend will only increase as people blog more, use twitter, and face
book incessantly, as well as businesses start sharpening their social media

Kenya’s 2009/2010 budget will grow ICT.

For me, the most interesting aspect of this year’s budget is the ICT friendly measures
announced, as follows:

• Tax on Televisions, Digital Cameras and Video Cameras has been removed (i.e.
the cost of content generation and consumption just got cheaper!)
• Mobile phones are now exempted from value added tax (VAT) although excise
duty remains and airtime is still being taxed (i.e. buying a new mobile phone to
get cheaper although old stock will probably still be taxed. Expect airtime
charges to start going up, eventually).
• Kes. 1.3 Billion (Kes. 6 million per constituency) has been allocated for the
purchase of mobile computer laboratories to grow the use of broadband internet
throughout Kenya (i.e. More and more Kenyan’s will have access to the Internet
over really fast internet connections country-wide, even in the most rural of
areas. There is also the potential for more widespread local content generation
and digitization, as well online entrepreneurial ventures mushrooming country-
wide!).
• Internet Service Providers (ISP’s) can now offset taxable income against the costs
of purchasing bandwidth for a period of over 20 years (i.e. cheaper internet costs
and ISP’s can be more profitable at the same time).
• Wear and tear on telecommunications infrastructure is increased from 12.5% to
20% (i.e. your internet costs should get even cheaper going forward, even as the
TEAMS, EASSY and SEACOM high speed cables are set to already lower
internet access charges significantly at the ISP level).
• Tax on software has been reduced (i.e. its going to be cheaper for you and/or
your organization to buy software).

Cisco partnership boosts ICT education in Kenya.

Also reported in today’s edition of the Business Daily, Cisco’s just signed
partnership through its Networking Academy and Kenya Ministry of Education will
vastly improving ICT education at Institutions of Higher Learning. Cisco’s Networking
Academy provides online courses, interactive tools and lab activities to prepare
individuals for ICT and networking careers in virtually every type of industry.

2.8 Conclusion

This chapter has indicated some of the studies previously done related to ICT in
Kenya, ICTs create new demands for services and goods leading to more investment,
opportunities in areas such as banking, technical support and maintenance, construction,
transport and training

The greatest benefits of ICT lie in its power to overcome geographical barriers.
ICT infrastructure offers economies of scale that stimulate network building and
consequent spill over benefits.

ICT enables interactive communication unhindered by distance, volume, medium


or time. Some commentators however hold much more skeptical views of the benefits of
ICTs for development.

CHAPTER THREE
METHODOLOGY
3.1 Introduction
This chapter describes the research methodology used in the
study. It covers procedure of data collection and data analysis, study
population and instrumentation

3.2 Area of study


This study was carried out in particular areas in rural and urban
residence at Eldoret town in Kenya

3.3 Research design


A survey was preferred since it collects data about a population
as it exists. In this study simple random sampling method was
employed where each employee had equal chances of being in
corporate into the sample.

3.4 Study population


The target population of this study was made up of employees
working in different firms. The study population was drawn from
different employment status the permanent and the temporary; this
gave a total population of hundred percent in the number of
employees from different job description.

Table 3.1 Employees’ population profile ( in %)

Job Description Number of employees


Permanent 40
Temporary 60
Total 100

3.5 Data collection instruments


Data for this study were collected through questionnaire,
interview and observation. The questionnaire contained items which
was mainly closed ended questions. The questionnaires were
administered to some employees. Interviews schedules were
administered to selected employees. The research also gathered
information through observation; this helped to verify the responses
received through questionnaires and interviews.

3.6 RESEARCH FRAMEWORK


CONTROL
EMPLOYE
GROUP
INFORMATION
AND
ES
COMMUNICATI
ON

GEND RESIDEN EMPLOYME


CE NT SATUS

Mal Femal Rur Urba


e e al n Permane Tempora
nt ry

H01 H02 H03

FINDINGS,
CONCLUSIONS
ANDRECOMMENDAT
IONS
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction
This chapter deals with analysis of data, discussion of the findings
and interpretations. This is presented using descriptive statistics such
as totals, percentages and graphs. This study sought to find out how
employees interact with ICT tools.

This chapter is divided into different sections according to the


research questions. Each research questions was analyzed with
variables that the study sought to find. Tables were used to present
the data collected. The charts were used to show comparisons of the
results.

4.2 Employee’s profiles


The preceding tables interpret the sample numbers into
percentage of the overall total sample. This table translates the sample
numbers into percentages of the overall total sample. For instance in
table 4.1shows the employee general profile

Table 4.1-Employees general profile (in %)

Employment Male Female Total


status
Urban Rural Urban Rural
Permanent 15 5 10 4 34
Temporary 30 10 20 6 66
Total 45 15 30 10 100

The findings showed that out of the total employee population male
and female were 60% and 40% respectively. As shown in table 4.2 and
chart 4.1

Table 4.2- profile of Eldoret employees – Gender classification


(in %)
Male Female Total
Total 60 40 100

Chart 4.1- profile of male and female employees

Table 4.3- profile of Eldoret employees – Residence


classification (in %)

Male Female Total


Urban 45 30 75
Rural 15 10 25
Total 60 40 100

Chart 4.2- profile of employee’s residence status


75% of the population compromised employees who lived within urban
areas and of whom 45% were male and 30% being female. Those living
in rural areas comprised of 25%, male being 15% and female 10%

Table 4.4- profile of Eldoret Employees – Employment status


classification (in %)

Male Female Total


Permanent 20 14 34
Temporary 40 26 66
Total 60 40 100

Chart 4.3- profile of employees’ employment status

Permanent represent 34% and Temporary represent 66% of the total


population of 100%. Of the permanent employment status 20%were
male and 14%were female. 40% and 26% of the temporary
employment population status were male and female.

4.3 Employees spending analysis


Table 4.5- Amount spending based on Gender (in %)

Amount of Male Female Total


employees
spending
per week
200 30 20 50
400 20 10 30
600 10 5 15
800 2 1 3
1000 2 2
Total 64 36 100

Chart 4.4- Amount spending analysis based on gender

From the chart above, many employees spend between ksh 200 and
400 per week, with most of them being male.

Table 4.6- Amount spending based on Residence status (in %)

Amount of Rural areas Urban Total


employee’s areas
spending
per week
500 15 30 45
1000 10 25 35
1500 5 5 10
2000 1 5 6
2500 0 4 4
Total 31 69 100

Chart 4.5- Amount spending analysis based on Residence status

Many of the urban employees spend a weekly average of ksh 500 as


compared to the rural employees

Table 4.7- Amount spending based on Employment status (in %)

Amount of Permanen Temporary Total


employee t
spending per
week
500 10 30 40
1000 10 10 20
1500 30 5 35
2000 5 5
Total 55 45 100
Chart 4.6- Amount spending analysis based on Employment
status

Most of the permanent employee uses an average of ksh 1500 per


week unlike those of temporary employee who uses an average of ksh
500.

4.4 What is driving demand for ICT in Kenya?


a) ICT industry performance

ICT is driving industry performance in Kenya to another level in that


production of goods is faster emerging to the top than before.

Chart 4.7- Analysis of industry performance in Kenya


The finding shows that in 2009 to date industry performance has
grown to a higher level making the Kenyan market on demand of
newer goods.

b) ICT is driving knowledge economy in Kenya

Over 18 million mobile users are communicating over different


networks to pass information and this has increased the economy of
mobile subscribers across Kenya. And 4 million internet users are
connecting to various networks across Kenya and around the world

Table 4.8- market growth based on knowledge economy (in million figures)

2007 2008 2009 2010


Mobile 5 million 5.5million 10 million 18 million
subscribers
Internet 1.5 million 2 million 3.5 million 4 million
users

Chart 4.8- Analysis of market growth as at January 2007 to date.


In 2009 and 2010 market economy has grown instantly unlike in the past years this shows
that Kenya is emerging from different variations in the economy world.

c) ICT for Development

Chart 4.9- Analysis of ICT infrastructure as from 2009 to date.

Development in ICT has increased infrastructure from 12.5% to 20% in 2009 to 2010
increasing the industry performance and the economy of Kenya from different fields of
ICT

d) Telecommunication

Table 4.9-Tabulation of different Telecommunication Network’s market shares


Network Percentage
Safaricom 55.74
Zain 30.30
Orange 11.30
Others 2.66
Total 100

Safaricom leads in the market shares with an average share of 55.74%, this is mainly
attributed to the promotions and other services it offers in the market. Zain is on the
second position with an average share of 30.30%. Orange having joined the market lately
has a market share of 11.30%. Other networks e.g Yu and the rest are struggling with a
negligible market shared of 2.66%

Chart 4.10 Analysis of Network market share based on Kenya


CHAPTER FIVE
SUMARRY, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
This chapter is a summary of the study. It presents the major
research findings, the conclusions drawn as well as the
recommendations made and areas of further research.

As expressed in chapter one the main purpose of this research


was to find out the degree of employees relations with ICT and to know
whether there is significant differences across the various employee
profiles. Related literature was reviewed primarily for the purpose of
getting insight of what had been done before.

The study area was located at Eldoret town in Kenya and her
neighboring towns and primarily her employees; the research design
used was mainly a survey. The data collection instruments included
the questionnaire, interview and observation.
After collection, analyzing and the interpretation of data, the
findings were summarized in the summary of the findings below.

5.2 Summary of the Findings


From the hypotheses tested in this study the following findings
were made:

HO1 : There is significant difference between the male and


female employees on ICT.

The findings showed that there is a significance difference in the


amount spent on ICT among male and female employees
because the values were different. Therefore the hypothesis was
adopted and then submitted

H02 : There is significant difference in the spending on ICT


between the residence status i.e the rural and urban status.

The findings showed that there was a significance different in the


amount spent on ICT between the residence. And in this case the
different hypothesis was adopted and accepted.

H03 : There is significant difference in the amount spent on ICT


between employees across the different employment status.

Findings indicated that there is a significant difference amongst


employees with different employment status. Therefore the
alternative hypothesis was adopted.

5.3 Conclusions
From the study findings the following conclusions were made

 Employees both male and female employees had the


different perception towards ICT tools.

 Irrelevant of residential status, employees would just spend


different types on ICT tools.
 Across the various employment status employees reacted
differently showing that their perceptions depended on the
job scale they hold.

5.4 Recommendations
Emanating from the findings and consequent conclusions the
following recommendation was proposed;

 Employees should play a forward role in educating their


individuals on the importance and usage of ICT tools

 Because of the new literacy this include the skills, strategies


and insights necessary to successful, that means that we
must help others learn how to learn new technologies of
literacy

 Engaging employees in ICT to radically transform Kenya’s


economy, society and politics.

5.5 Suggestions for further Research


This study cannot be considered exhaustive in covering the major
areas of study in employee perception towards ICT. The following
related parameters would require investigations:

• In Information and information technology these two key


development tenet go hand –in –hand with sustainable economic
and social development.

• Research to be done to establish employee perception towards


ICT.

• Similar study to be done in other employment centers having


different working environment using various ICT.
• Study into the relationship of employee usage on ICT tools in
different sectors.

BIBLIOGRAPHY
Vincent et al (2005, October). The influence of mobile phone
users on the design of 3G products and services. New York:
Thompson
Bruce 1997; leu, in press aj Reinking, 1998. Literacy in technology

Communications Africa volume (ii) issue 6

ICT village magazine. (www.ICT village.com)

2008 ICT Development Expo. From ICT village magazine.

(A review of Kenya’s ICT positions in 2009) Retrieved from


ministry of information and communication published on January
2,2010 from http://www.information.go.ke

Macharia, E. (2009, November 3). CCK (communication


commission of Kenya) survey. The standard, p.20.

Kimutai, C. (2009 May).Mobile subscribers to migrate in style.


Management, volume 4.

APPENDICES
Survey questionnaire for Employee

Please cross mark (x) criteria that apply to you.


Gender ( ) Male ( ) Female

Residence ( ) Urban Area ( ) Rural Area


Age ( ) 20 – 30 yrs ( ) 31 – 40 yrs ( ) 41 – 50 yrs ( ) Above 50 yrs

Nationality ( ) Kenyan ( ) Non Kenya

Education ( ) Student ( ) Non student

Employment status [ ] Permanent ( ) Regular ()


Contract

[ ] Temporary ( ) Regular ( ) Contract

Rate the preferences 4 (excellent), 3 (Good), 2 (Fair), and 1


(Poor) for services offered in ICT

Intern Mobil E– Network services


et e learni safarico zai orang Y Other
phon ng m n e u s
es
Price
affordability
Availability
of the cards
in vendors
Quality of
connection
and
communicat
ion
Services
provided for
calling/sms
promotion

Do you have any knowledge of how ICT is being used? ( ) yes


( ) no

Have you ever used any type of ICT services? If yes, specify …………

What are the examples of ICT specify……………

Has ICT developed a change in your life? If yes, specify how…………


Interview Questions For Employees both in Rural and
Urban areas

• What do you understand about the word ICT?

• Have you ever come across an ICT tools?

• Give examples of where ICT is being used?

• What is your education level?

• What is your employment status?

• What are the uses of ICT?

• Do you have knowledge of how ICT is being used?

• Do you know any type of ICT?