Kenya ICT Board Monitoring and Evaluation Survey Results 22ND November 2011 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Agenda Project Background Market Overview (Key Indicators 2010, Kenya IT Market Value (US$M) Forecast 20102015, Kenya IT spend by Vertical segments) ICT Ecosystem Overview - Vendor Survey (market Structure, challenges, opportunities, Vendors performance, outlook) International Benchmarking ICT Skills Survey Highlights Residential Usage and Penetration Highlights Business Survey Highlights Recommendations Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Project Background Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 3 Background Survey Objectives Survey Highlights Understanding the Kenyan ICT Ecosystem and trends in the market. Aims to provide ground-breaking primary research that encompasses numerous market sub -segments and different stakeholders Sizing the ICT Market and its sub segments (hardware, software, services, etc) in Kenya. It will leverage on existing secondary market research in order to consolidate existing discrete market information Compiling a baseline of key ICT KPIs Benchmarking key Kenya ICT indicators against six countries Understanding the ICT Skills availability, demand and gaps It will have a repeat cycle to gauge the progress and impact of KICTB and other stakeholders’ initiatives. The survey is consultative as well – where multiple stakeholders are both respondents (i.e. What are your issues?) and also beneficiaries (i.e. What to do?) Timely – to augment development of existing KICTB projects – Pasha centres (rural access) , Tandaa (digital content), Wezesha (asset financing) as well as other government ICT initiatives Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Kenya ICT Market Overview Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 5 Market Overview Kenya ICT Market Key Indicators Volume of international traffic (Mbps) 20,209.56 Mbps International Internet bandwidth, Mbps per 10,000 population 4.2 Number of Computers per 100 inhabitants 2.4 % of households with a personal computer 6.3% Total number of Internet Subscriptions 4,716,977 Total number of internet users 10,199,836 % of population with Internet Access 25.9% Internet subscribers as % of total population 11.5% Total number of main fixed lines (fixed lines plus fixed wireless) 380,748 Total number of mobile subscriptions 24,968,891 Number of .Ke domain names 18,000.00 % of organizations with a website 90.0% % of full time employees who use internet for work at least once a week 52.14% Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 6 Market Overview ICT Spending by Technology Areas Kenya ICT market size 2010 & forecast to 2015 $1,800 $1,600 $1,400 Axis Title $1,200 $1,000 $800 $600 $400 $200 $0 Services total Packaged software total Hardware total 2010 91.20 69.12 586.40 2011 107.65 80.06 681.01 2012 130.04 88.91 829.25 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 2013 153.52 101.72 955.94 2014 180.00 116.92 1,078.92 2015 209.04 132.40 1,192.11 7 Market Overview Spending by Vertical Sectors Transport 3% Utilities 4% Wholesale 2% Agriculture, Construction, and Mining 3% Financial 13% Retail 4% Process Manufacturing 7% Business Services 3% Other 4% Healthcare 2% Government 15% Communications 20% Education 3% Discrete Manufacturing 2% Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Consumer 15% 8 Kenya ICT Ecosystem Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 9 Kenya ICT Ecosystem Structure Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 10 Kenya ICT Ecosystem Highlights 1/2 There are an estimated 20-30 vendors present in the market most of whom rely on a small pool of major distributors and Tier 1 Value Added Resellers (VARs) and Dealers who combined account for the bulk of ICT Business in Kenya estimated at nearly 50-60%. On average PC and Printer vendors each have between three to four distributors and at least six other partners (dealers and systems integrators) each at different market levels. At the lower part of the pyramid are Tier 2 VARs and dealers, estimated to number more than 100 players and whose focus is part of the SME segment, the SMME and home user segment. These are players who typically do not have a country wide presence and would largely be found operating at a provincial level or even a national level (where SMEs have such a presence to require nationwide services) but at a smaller scale nonetheless. These Tier 2 firms are mostly Kenyan owned companies serving other Kenyan owned businesses and occasionally securing parts of relatively good contracts in the government and education segments, where procurement of goods or services may require a local player. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 11 Kenya ICT Ecosystem Highlights 2/2 The Tier I players largely comprise companies with both a national and regional presence, and in most instances are majority foreign owned companies spinning off regional offices in South Africa, UAE, India among other countries. Owing to having a good foothold in their parent regions, coupled with access to industry best practices, fairly solid skills bases and access to capital, such companies have been able to target the market segment that includes multinational companies (MNCs), large enterprises and government, where such credentials bear heavily on decision making at this level. Vendor competition on channel partnerships has intensified with main distributors being sought after by other vendors to leverage on their reseller network. Thus multiple brand handling by the channels is the norm even for channel partners who were "loyal" to certain vendors. The channel is maturing fast with thinning out of grey shipments. Telcos and telco channels are now selling PCs. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 12 Kenya ICT Ecosystem Highlights 2/2 Vendors are keen on setting up offices in Kenya to serve the East and Central Africa region. Vendors with a local presence enhance the brand image significantly as well as improve logistical support and increased marketing campaigns. With more vendors setting up locally, the market has seen an increase in both the number of channel partners. Government initiatives including infrastructure development, regulatory reforms (licencing frameworks), investment in public access centres, e-government projects, content creation, device subsidies, have all had a very positive effect in transforming the market, stimulating investment, ICT uptake and bolstering confidence in the overall ICT market. Thus vendors have registered positive growth over the last three years of between 15-15% in business and with some posting growth in headcount of between 2550% Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 13 Kenya ICT Ecosystem Kenya as a regional Hub •Kenya is without doubt the regional hub for most vendors with a regional reach spanning between three to six countries on average for vendors. •Aside from being a hub, it is also a stepping stone for these vendors to set up operations in neighbouring countries but still maintaining somewhat centralized marketing, inventory and support functions at regional levels. Among the countries Kenya based vendors have reach into from their Kenyan hub include: Uganda, Tanzania, Rwanda, Burundi, Ethiopia and Southern Sudan. •Inherent in this structure are various opportunities including training, skills transfer, overall higher employment, technology leadership and increased investment. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 14 Kenya ICT Ecosystem Challenges faced Challenges Currency fluctuation affecting imports Overall low purchasing power especially in 2011 with high inflation putting pressure on disposable income. Taxation on consumable products and unclear taxation framework to define various ICT imports. Product/Service quality perception vis a vis other competing products/services in the market (e.g. pro-West stance or pro-more established brands) Lengthy customs procedures - demurrage costs passed on to users therefore higher prices. Sourcing highly qualified talent. Doing business with the government – procurement laws. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 15 Market Opportunities Skills development. Further infrastructure investment mainly last mile access and quality of existing networks is crucial for more pervasive adoption. Reform tax environment to attract ICT investors. Addressing the problem of counterfeit products (consumables, devices) , with support of relevant government departments (in terms of scrutiny, enforcement and standards). The success experienced by counterfeiters illustrates there is good demand for products. Skills gaps are opportunities where channel partners can intervene themselves rather than leave it up to vendors to acquire and maintain the skills. Channel partners can develop their own existing staff to meet some of these positions and leave the vendor to have a basic presence - a sort of shift down the tier and in line with the earlier stated objective to deepen intimacy with customers and strengthen the channel. Overall growth in the IT market will continue to stimulate growth in other areas. Enhance the platform for increasing regional reach. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 16 Kenya ICT Ecosystem Vendors’ Market Outlook Investing in specific ICT Skills like mobile applications development and setting up innovation hubs. Vendors have deliberate strategies to develop and use more local talent than imported. Setting up innovation funds at academic levels and for developer groups Entry of products relevant to the local market and environment (e.g. solar powered devices) Increased participation in government driven ICT programmes. Watching very keenly on developments with the Konza Digital City with a view to enhancing presence and regional investment. Deepen customer relations as more intimacy is needed in the market. Reforming go to market strategies in line with a changing ecosystem underpinned by technological and other developments. Increase presence in the region, headcount and channel partnerships. Enhance vertical sector and product specializations – skills, products, GTM approach. Focus on infrastructure issues and how to address how lack of adequate infrastructure (power) affects uptake. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 17 Benchmarking Kenya Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 18 Benchmarking Internet Users vs Connections as a % of population Internet Users vs Connections as a % of population In more developed countries the total number of connections vis a vis the number of users are evenly spread 60.0% In countries like Kenya, Nigeria and Morocco, there are lower numbers of connections but higher number of users indicating most connections are shared connections and largely comprise business connections (including publicly accessible connections like cyber cafes, education institutions). 40.0% 50.0% 30.0% 20.0% 10.0% 0.0% Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco Internet subscribers percentage of total population Total Internet user penetration Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 19 Benchmarking Total Internet vs Household penetration Total Internet vs Household penetration Kenya has a higher internet penetration vis a vis South Africa but mainly bolstered by mobile internet connections though with a lower proportion of households connected owing to a declining fixed network and poor development of DSL based services. Kenya compares much better than both Nigeria and Rwanda on both counts Egypt has a much higher overall and household internet penetration with a huge gap between Kenya of almost 25 percentage points at household level. 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Kenya RSA Nigeria Rwanda Ukraine Philipines Proportion of households with internet access Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Egypt Morocco Total Internet user penetration 20 Benchmarking Computer Penetration Computers per 100 inhabitants 9 Kenya has slightly higher PC penetration rates than Nigeria and Rwanda but still very far behind South Africa and Morocco, mostly owing to lower disposable income than these countries. 8 7 6 5 4 3 2 1 0 Kenya RSA Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Nigeria Rwanda Ukraine Philipines Egypt Morocco 21 Benchmarking Household Internet Access vs Household PC Access Household Internet Access vs PC In terms of PC Access at the household level, Kenya is only better than Rwanda. It should be noted that Nigeria as a manufacturer of PCs (Zinox brand) that are locally affordable, accounts for much higher PC penetration at household levels but negligible household internet penetration given infrastructure issues (submarine cables arrived way after they did in East Africa) 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Proportion of households with internet access Proportion of households with a computer Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 22 Benchmarking Business Internet Usage Business Internet Usage Morocco In terms of business usage of the internet, Kenya is nearly on par with more developed countries like Egypt and Morocco and slightly ahead of Nigeria Egypt Philipines Ukraine Rwanda Nigeria RSA Kenya 0 1 2 3 4 5 6 Extent of Business Internet Use - WEF Indicator Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 23 Benchmarking Broadband Access Tariffs Broadband Access Tariffs Despite additional capacity, cost of broadband is still a factor for business vis a vis other countries. Nigeria has recently got a lot of international bandwidth but constrained somewhat by back bone, last mile access and electricity challenges. Landlocked Rwanda largely relies on bandwidth from operators in neighbouring countries. $120.00 $100.00 $80.00 $60.00 $40.00 $20.00 $0.00 Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco Internet Access Tariff - Broadband Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 24 IT Skills Survey Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 25 IT Skills Survey Highlights IT Employment by Profession Of the total IT employment in Kenya (~27,000 IT Manager / Director IT professionals in 2010), IT support people IT Administrator represent the largest portion (27%), followed Software Developer by Applications Systems Analysts and System Engineers (13% each). 11% 11% 9% Application Systems Analyst 13% System Engineer (Computer Networking/IT) 13% The structure of IT professions is slightly IT Consultant 5% While the IT management and administration IT Team Leader 5% professions prevail in the end-user segment, IT Project Manager different for IT companies and end-users. IT companies employ more IT development- 4% Web Designer 5% related professionals. IT Support (help desk) 27% 0% 5% Source: IDC IT Skills Model Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 10% 15% 20% 25% 30% IT Skills Survey Highlights Demand Prediction by Professions Roughly 9600 IT professionals are 511 IT Manager / Director 2,814 IT Administrator 3,002 733 expected to be added to the Software Developer Kenyan IT workforce. 2,270 1,600 The demand for individual IT Application Systems Analyst 3,396 1,078 professions differs by profession. System Engineer (Computer Networking/IT) 3,415 983 Software Developers (at 70% growth) and Project Managers (at IT Consultant 1,276 675 IT Team Leader 1,370 482 57% growth) are the professions expected to grow the fastest over the period 2011-2013. IT Project Manager 1,051 Web Designer 1,238 IT Support (help desk) 604 666 7,017 0 2010 Employment Source: IDC IT Skills Model Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 2,304 5,000 2011-13 Demand 10,000 IT Skills Survey Highlights Availability of IT Professionals IT Manager / Director Application Systems Software Developers Analysts and IT IT Administrator professions that are least available. Software Developer are the Approximately 45% of respondents Application Systems Analyst reported they are very difficult or difficult to find. System Engineer On the contrary, IT Support people and IT Consultant IT Administrators are much easier to IT Team Leader find – only for less than 10% of IT Project Manager respondents, they were reported as Web Designer very difficult of difficult to find. IT Support (help desk) 0% 20% 40% 60% 80% 100% % of Companies Very Difficult to find Difficult to find Neither Easy to find Source: IDC IT Skills Research N = 158 Source: Business Survey Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Very easy to find IT Skills Survey Highlights Demand/Availability Matrix for IT Professions Difficult 45% Availability % of companies reported very difficult or difficult to find 50% Consider Focus Application Systems Analyst 40% Software developer 35% System Engineer 30% 25% IT Manager/ Director 20% IT Consultant IT Project Manager 15% Team Leader 10% Web Designer IT Administrator 5% Monitor 0% 0.00% IT Support 20.00% Low 40.00% Demand New jobs growth between 2011 and 2013 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 60.00% High 80.00% IT Skills Survey Highlights Demand Prediction by IT Skills Networking skills Security skills The demand for individual IT professions differs. The most growing demand will be seen for IT Project Management 2,175 11,997 7,961 SW development skills 5,363 IT Project management skills 4,920 Mobile technology skills 4,920 1,566 1,861 1,788 Skills (136%) and Software development skills (135%). IT Administration and HW skills are projected to grow at the lowest 1,308 Database skills 10,154 1,824 Data storage skills 10,007 1,714 Enterprise/business application skills 6,782 1,087 rate – less than 12%. Internet-related skills 19,294 HW skills 17,783 IT Administration skills 10,836 0 Source: IDC IT Skills Model Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 2,359 5,000 1,695 1,290 10,000 2010 Employment 15,000 20,000 2011-13 Demand 25,000 IT Skills Survey Highlights Availability of IT Skills Networking skills Software development/deployment & Enterprise/business application skills are least available – for approximately 30% of Security skills Software development/deployment… IT Project management skills interviewed organizations, these professions Mobile technology skills are very difficult or difficult to find. Database skills Project management, security and mobile Data storage skills technology skills were also reported as Enterprise/business application skills Internet-related skills difficult to find. HW skills Internet-related & Networking skills are IT Administration skills available and easy to find. 0% 20% 40% 60% 80% 100% % of Companies Very Difficult to find Source: Business Survey Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Difficult to find Neither N = 158 Easy to find Very easy to find IT Skills Survey Highlights Demand/Availability Matrix for IT Skills Difficult 40% Availability % of companies reported very difficult or difficult to find 45% Focus Consider Software Development Enterprise/Business Applications 35% 30% Security 25% 20% IT Project Management Databases 15% HW IT Adm. 10% 5% 0% Mobile Technologies Data Storage Networking Internet Monitor 0% 5% Low 10% 15% 20% 25% Demand New jobs growth between 2011 and 2013 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 30% 35% High 40% IT Skills Survey Highlights Supply side: Skills lacking in graduates Skills lacking in graduates: Interviewees were asked about the skills they thought their graduates were lacking in or particularly strong in, following are the skills plotted representing an average of the ratings. Problem solving Hardware skills Software skills LACKING Project management skills STRONG IN Skills in graduates Structured & Innovative thinking Team skills Software skills and Problem solving skills rated the highest while hardware and project management skills rated much lower. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. IT Skills Survey Highlights Demand Side : Skills lacking in graduates When probed on the types of skills usually lacking in Innovative graduates, thinking, companies Problem solving cited and Project management/implementation as the top three skills that are lacking Q: What type of skills are the graduates particularly lacking? Some of these findings were seconded by the university interviewees which indicated lower Problem Solving 39% Project Management/Implementation 41% Innovative thinking 41% Structured Thinking 33% ratings on project management/implementation skills and innovative thinking. SW Skills Based on some interviews with ICT companies, 27% Ability to work in teams 18% Business/ Soft skills were cited as lacking in graduates as well as keeping up HW Skills with technology trends; the view was expressed that 15% 0% the gap between theory and practice needs to be bridged via mediums such as internships 20% 40% % of Companies Source: Business Survey Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 60% IT Skills Survey Highlights Overall business perception of IT Skills Roughly a quarter of companies are not satisfied with the quality of IT professionals from We are satisfied with the quality of the IT professionals from educational institutions in Kenya educational institutions in Kenya Approximately companies a have third contacted of or We contracted/will have to contract external providers of IT services due to the lack of internal IT skills plan to contact external providers to manage the skills shortages. Roughly half of the respondents Lack of IT skills in the country has a significant effect on business operations and performance believe that the lack of IT skills significantly impacts business and IT operations & performance. Lack of IT skills in the country has a significant effect on IT operations in our organization 0% 20% 40% 60% 80% 100% % of Companies Strongly Disagree Disagree Source: Business Survey Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Neither Agree Strongly Agree IT Skills Survey Highlights Inhibitors – Supply Side/Educ inst view • Funding and Infrastructure constraints cause less availability of resources and labs; not all the educational institutions are adequately networked • Scarcity of experienced faculty and a general shortage of teaching skills for technology; it was also indicated that it is tough for educational institutions to match private sector pay • Last-mile connectivity to rural areas was also cited as an inhibitor. This severely limits the availability and accessibility of internet, both from a quality and price perspective • Quality of education: The view was expressed by more than one interviewee that skills obtained from many colleges and institutions are not adequate for the industry. Consistency of curriculum was a common theme, with the lack of guidelines emphasized. The watered-down value of certifications and lack of market-relevant courses in some educational institutions were other themes. • General lack of understanding of IT as a career Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. IT Skills Survey Highlights Inhibitors - Businesses view Q. In your opinion, what are the key factors hampering the availability of IT skilled professionals in the country? Insufficient government initiatives in this area 82% Low number of IT-skilled graduates 22% Kenya is not an attractive location for foreign IT professionals 17% The ICT field is not attractive for the younger generation 13% Complicated visa & travel regulation 8% Low level of English language proficiency 3% 0% 20% 40% 60% % of Companies Source: Business Survey Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 80% 100% Residents Survey Highlights Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 38 IT Skills Survey Highlights IT companies view of inhibitors of IT skills Some large ICT companies were of the opinion that that the overall skills pool in the Kenyan market is rather limited. The view was also expressed that there is more of a gap at the advanced skills level as many IT professionals with advanced skills leave the Kenyan market while there is not much of an influx of experienced professionals from abroad. Another related issue is loyalty and attrition; IT professionals are perceived as migratory and there seems to be a fair bit of poaching; an opinion which is consistent with the business survey where 80% of the companies indicated that attrition has a minor to significant impact on their organizations. Frequency and size of IT projects: The view was expressed that there may not be enough big IT projects that can result in a large pool of skilled personnel, consequently there are not enough projects that allow professionals to exhibit or develop their skills. Availability of lower cost imported ICT labour was also cited as an inhibitor to skills supply. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. IT Skills Survey Highlights Gap analysis framework Training/ Retraining Middle level colleges IT Profess ionals from abroad Public and Private universities Training institutions Students who go abroad or pursue higher studies ‘Unqualified’ supply or Skills mismatch ‘Brain drain’ especially at higher Skill levels Attrition ‘Qualified’ Supply Move to management tracks Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Gaps filled by expats for short-term project duration Demand Gap IT Skills Survey Highlights Dimensions of the gap in IT skills Technical gaps • Enterprise/business application skills, software development, mobile applications • IBM and SAP related technology skills Higher-level gaps • Shortage of experienced IT personnel • Poaching and moving abroad i.e. ‘brain drain’ reported; also technical staff moving to management tracks • Experienced professionals from abroad not coming in Gap in IT professionals Quality gaps • Candidates who have certifications and educational qualifications but do not bring the expected quality • Inconsistencies in course duration and curriculum within the courses Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. • • • • Graduate-level skill gaps Project management Problem solving Innovative thinking Gap between theoretical and practical skills; insistence of some experience from IT firms IT Skills Survey Highlights Overall Recommendation areas and initiatives Expand capacities of universities and colleges Establish specialized training programs for graduates Integrate ICT in education • • • • Provide infrastructure and funding support Address qualified teaching shortage; Evaluate & incentivize the supply • Focus on recognized skill gaps such as business skills and ‘soft’ skills Partner with training/ICT companies; encourage investment to ensure training availability • Incorporate more ICT elements at secondary level More attachment programs and internships with technology companies to learn and apply Focus on special interest areas Improve connectivity Harmonize and monitor supply & demand • • • • • Local context and relevance e.g. ICT in agriculture Innovation areas similar to m-pesa Incentivize reverse brain drain i.e. Kenyans based abroad • Provide last-mile connectivity through pricing incentives Help middle and lower tiers of educational institutions to get connected • • Definitions and quantification of demand roles and types of skills Policy on course design and criteria to fulfil these roles Open up data to relevant stakeholders Financing & Support Review ICT curricula Promote IT as a career • • • • • Specialized funding for ICT courses ICT incubators with educational institutions Tax relief & special funds for technology focus areas • • More regulation, more rigor and standardization Public-private partnership body to ensure curriculum standardization Online mechanism with Assessment of IT skills online • Attract more people (especially youth and females) via promotional campaigns Attractive industry compensation standards Government organizations, IT companies and Educational institutions would need to collaborate extensively in the above areas to achieve the ICT skills-related objectives related to the Strategic Plan and Kenya 2030. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. IT Skills Survey Highlights Projects prioritization Consider Implement Expand capacities of universities and colleges Review university curricula Focus on special interest areas Impact Improve connectivity Establish specialized programs for graduates Promote IT as a career Financing & Support Integrate ICT in education Low Harmonize and monitor supply & demand Low Ease of implementation Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. High Residents Survey Highlights Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 44 Resident’s Survey Highlights Internet Usage at home Q16. Do you have an Internet connection at home? Internet Home Penetration by Location 63% 74% 77% 77% 86% 37% 26% 23% 23% 14% 26% Mombasa Nairobi (253) Kisumu (120) Nyeri (100) Eldoret (98) (179) 74% Internet Home Penetration by SCL Yes No Base : Total Sample (750) 53% 47% AB (238) 79% 91% 96% 21% 9% C1 (328) C2 (161) 4% D (23) Yes 26% of the surveyed HH use internet Internet usage increases by SCL levels. It is highest in Mombasa (37%) No 45 Copyright IDC. Reproduction unless All rights reserved. Base is=forbidden The figure inauthorized. parenthesis represents the base of the respective category Internet Usage at home Inhibitors for Not Using internet at home Q17. What are the reasons for not having internet connection at home till now? We don’t have PC 58% We can’t afford internet subscription 28% I use internet in other places, and there is no need to have one at home There are no internet cables / infrastructure in our neighborhood I don’t know how to use internet 17% 13% 11% Internet connections are poor in terms of quality 3% Others 1% Nothing 1% Highest in Eldoret (77%), in SCL D (77%), Highest in Kisumu (43%), in SCL C2 (39%), Highest in Nyeri (21%), in SCL AB (18%), among the 15-24 yrs (22%) Highest in Nyeri (32%), in SCL AB (17%) Highest in SCL D (36%), among the 45+ yrs (26%) Highest in Kisumu (11%) Unavailability of PC is the main reason for not using internet from homes (58%) The usage of internet within low SCL’s (D and C2) is mainly hindered by their inability to buy PC’s or pay for internet connection 46 Copyright IDC. Reproduction unless All rights reserved. Base is=forbidden The figure inauthorized. parenthesis represents the base of the respective category Kind of PC, Internet Device & Mobile Service Used Q60. Which kind of mobile service do you use? Q25. What kind of PC do you use? Desktop 58% Prepaid 97% Both 22% Postpaid 1% Laptop 20% Both 1% Base : Users of PC (519) Base : Users of Mobile Phone (746) Q31. Which of the following devices have you used to access the Internet in the past 12 months? Other mobile phone / internet enabled mobile phones 80% Desktop 71% Laptop 34% Smartphone Digital TV 15% Accessing internet is largely done from mobiles, either internet-enabled handsets (80%) or smartphones (15%) A significant portion of PC usage (desktop or laptop) is dedicated to accessing the internet 1% Base : Users of Internet (592) 47 Copyright IDC. Reproduction unless All rights reserved. Base is=forbidden The figure inauthorized. parenthesis represents the base of the respective category Purposes for Using PC Q27. What is your primary purpose for using the PC? Detailed by Age Overall Personal usage 71% Entertainment 66% Communication 64% Education Work 45% 36% Detailed by Gender 15 – 24 (219) 25-34 (163) 35-44 (67) 45+ (70) Male (313) Female (206) 69% 72% 72% 76% 71% 71% 77% 70% 49% 40% 68% 64% 63% 65% 66% 67% 64% 65% 57% 42% 27% 30% 43% 47% 20% 44% 43% 59% 40% 29% Base : Users of PC (519) Respondents use PC mainly to perform personal task (71%), especially old individuals 45+ years Entertainment and education purposes drive respondents 15-34 yrs old to use PC. These reasons decrease significantly among older users (35+yrs) Old males (45+ yrs) tend to use PC for work reasons much more than other demographics. Copyright IDC. Reproduction unless All rights reserved. Base is=forbidden The figure inauthorized. parenthesis represents the base of the respective category 48 Purposes for Using the Mobile Phone Q59. Which of the following services do you actively use on your mobile device? Detailed by Age Overall Detailed by Gender 15 – 24 (219) 25-34 (163) 35-44 (67) 45+ (70) Male (313) Female (206) Voice services 97% 97% 96% 97% 99% 97% 96% SMS 96% 97% 97% 99% 88% 96% 95% 51% 52% 41% 26% 46% 45% 53% 45% 34% 23% 44% 40% Access to social media websites 45% Web Browsing 42% Entertainment 37% 47% 41% 31% 17% 39% 34% Access to Email 35% 42% 35% 34% 24% 38% 31% 36% 31% 32% 21% 30% 32% 33% 23% 20% 10% 25% 22% 20% 17% 10% 8% 18% 12% PIM Chatting Sending MMS 31% 24% 15% Base : Users of Mobile Phone (746) Calling and texting share respondents' main usage of the mobile (around 97%) The usage of internet enabled services and PIM mainly attracts the young category (15-24 yrs). Their usage decreases significantly by age 49 Copyright IDC. Reproduction unless All rights reserved. Base is=forbidden The figure inauthorized. parenthesis represents the base of the respective category Confidence in Using the PC Overall Q47a. How confident are you in using… Text processing using a program such as Word 8% 24% Creating a presentation with text and images, such as PowerPoint 17% Working with spreadsheets to create charts and tables such as Excel 19% Connecting and installing new devices, e.g. a printer or a modem or a new software Detecting and solving computer problems Bottom Box (Scale 1-3): Not Confident 22% Middle Box (Scale 4): Neutral 22% 37% 42% 1% 57% 24% 21% Writing a computer program using a specialized programming language 68% 3% 55% 3% 51% 4% 18% 16% 36% 8% 31% 11% Top Box (Scale 5-7): Confident Don't Know Highest confidence is recorded in the areas of text processing (68%) and working with spreadsheets(57%) PC users are least confident in maintaining the computer (checking and solving problems, 36%) and programming (31%) 50 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Base = Users of PC (n=519) Confidence in Using the Internet Overall Q47b. How confident are you in using… Creating a Web page/a blog 6% Using an Internet search engine 7% Using email to communicate with others Finding downloading, and installing software Posting messages to chat rooms, newsgroups, or online discussion forums Bottom Box (Scale 1-3): Not Confident 12% 80% 14% 13% 2% 79% 15% 26% 1% 65% 17% 39% Middle Box (Scale 4): Neutral 7% 49% 16% 9% 29% Top Box (Scale 5-7): Confident 17% Don't Know Highest confidence is recorded in the areas of using search engines (80%) and email communication (79%) Internet users are least confident in creating web pages / blogs (29%) 51 Copyright IDC. Reproduction is forbidden unless authorized. rights reserved. Base All = Users of Internet (n=592) Financial Transactions on the Internet and Mobile Type of transition, Number of online Purchases Q38. Which of the following on-line / electronic (through internet or mobile) services have you used in the past 12 months? Top up of Airtime through Mobile Money Transfer 86% Payments (utility & mobile bills etc) through Mobile Money… 38% Payments of School fees through money mobile transfer 16% Buying of product through Mobile (Mobile Money transfer) 14% Sending money to someone 9% Receiving money from someone 9% Selling of product through Mobile (Mobile Money transfer) 7% Online Banking transaction 4% Payments (utility & mobile bills etc) through Internet 3% Buying of product and services through internet 2% Selling of product and services through internet 0% Base : Respondents Using Online Banking or purchases (510) 4 of the top 5 e-transactions are done via mobile Online e-transactions are almost not present and include online banking (4%), utility payments (3%) and the purchase of products and services (2%) 52 Copyright IDC. Reproduction unless All rights reserved. Base is=forbidden The figure inauthorized. parenthesis represents the base of the respective category Tasks Performed on the Internet Q34. Do you use the Internet to perform any of the following tasks? 15 - 24 (238) Communicate with colleagues Search for information Education and learning activities Playing or downloading video games or computer games Reading or downloading on-line newspapers or magazines Getting information about goods or services - Internet usage… Using peer-to-peer file sharing for exchanging documents,… Finding, downloading, and installing software Communicate with customers/citizens/ residents Getting information from general government organizations Keeping viruses, spyware, and ad-ware off your computer Schedule business appointments Interacting with general government organizations Checking a receipt of payments Purchase or place orders goods and services Online banking 77% 68% 40% 29% 28% 27% 22% 22% 21% 12% 12% 9% 7% 5% 5% 3% 81% 68% 48% 37% 25% 19% 28% 21% 17% 13% 11% 6% 6% 4% 5% 2% Detailed by Age 25-34 35-44 (182) (88) 82% 70% 42% 27% 30% 34% 23% 25% 21% 10% 13% 11% 8% 5% 8% 4% 76% 66% 24% 23% 26% 26% 14% 22% 23% 14% 14% 13% 10% 7% 2% 0% 45+ (84) 57% 64% 29% 19% 33% 34% 8% 19% 29% 11% 16% 8% 5% 2% 5% 4% Detailed by Gender Male Female (346) (246) 79% 70% 39% 31% 27% 29% 25% 25% 21% 13% 13% 10% 8% 5% 6% 4% 76% 65% 40% 26% 29% 25% 18% 18% 20% 11% 11% 7% 7% 4% 4% 1% Base : Users of Internet (592) The main purposes for using the internet are communicating with colleagues (77%) and searching for information (68%), exceeding by far other reasons. Internet users 35+ yrs old perform business-oriented internet tasks (communicating with customers, scheduling appointments, etc.) more than younger users who look for more social, entertaining or educational activities online Copyright IDC. Reproduction unless All rights reserved. Base is=forbidden The figure inauthorized. parenthesis represents the base of the respective category 53 Satisfaction With Internet Service Q46. The following questions are about your satisfaction with the Internet service you use. I will ask you about various characteristics of the service, for each one please select a number from 1-7, where 1 = Very dissatisfied, and 7 = very satisfied Overall Internet service Customer support after sales Speed of your Internet service 13% 5% 61% 21% 9% 14% Reliability of your Internet service 15% 19% 3% 68% 21% Cost of your Internet service Value for money spent on your Internet service 23% 6% 66% 21% 3% 63% 24% 58% 24% Dissatisfied (Scale 1-3) 3% 41% Neutral (Scale 4) Satisfiied (Scale 5-7) 3% 17% Don't KnoW Base : Users of Internet (592) 68% of internet services are satisfied with the overall internet service. This is mainly driven by the reliability, speed and cost of this service Internet users record lowest satisfaction with the support they are getting from providers (41%) Copyright IDC. Reproduction unless All rights reserved. Base is=forbidden The figure inauthorized. parenthesis represents the base of the respective category Awareness of e-Government Services Q65. Are you aware of any government services available online? If yes, have you used any for your non-work related matters in the past 12 months? 46% Not aware of any services provided online 43% 61% 45% 47% Nairobi (253) Mombasa (179) 41% Aware of them, but have never used any online services Aware of them and have used them in the past 12 months 45% 46% Eldoret (98) Kisumu (120) Nyeri (100) 45% 24% 32% Eldoret (98) Kisumu (120) Nyeri (100) 12% 15% 23% Eldoret (98) Kisumu (120) Nyeri (100) 39% Nairobi (253) Mombasa (179) 13% 9% 14% Nairobi (253) Mombasa (179) Base : Total Sample (750) Overall awareness of e-government services is significant (53%). But their actual usage is low (23%), concentrated especially in Nyeri (23%) Copyright IDC. Reproduction unless All rights reserved. Base is=forbidden The figure inauthorized. parenthesis represents the base of the respective category Type of e-Government Services Used in Past 12 Months Q66. Which of the following e-government services have you used in the past 12 months for none-work related matters? Exam Results and Candidate selection 68% Apply for Public Service Jobs 39% HELB Loan Repayment status 25% Submit Tax Returns online 19% Customs Services online 15% Track status of ID and Passport Business licensing e-registry Report Corruption online 13% 9% 6% Copyright IDC. Reproduction isBase forbidden unless of authorized. All rights reserved. = Users e-Government Services in Past 12 Months (n=103) Other e-Government Services Q68. Are there any other government services you would like to see available on line? Advertisement of Government positions 20% Application of birth certificates 13% Electronic elections 13% Processing of licenses by KRA - Any other government services you would like available online 7% Title deeds acquisition 7% Downloadable ID cards/ passports 7% How the budget is prepared/processed 7% People with disabilities should be put online 7% Show/upload government services 7% City council stickers 7% Efficiency/accountability of government related work and projects 7% Payment of council levies 7% Appointments for government positions 7% ID registration 7% None/Don’t Know : 85% Copyright IDC. Reproduction isBase forbidden unless of authorized. All rights reserved. = Users e-Government Services in Past 12 Months (n=103) Barriers to ICT Usage Q63. What are some of the reasons that may be limiting your use of ICT (computers and Internet)? Detailed by Location Computers/Internet not available at home High costs of buying/renting computers High costs to connect to the Internet High costs of maintenance and repairs for computers Technology is too complicated Lack of required skills to use computers/ internet Risk of viruses is too high when using the Internet Computers/Internet not available at work Lack of trust for ICT (e.g. security/ privacy issues on the Internet) Internet cafés are hard to reach or find Not secure to do business/ make transactions over the Internet Not enough websites / content in local language Computers/Internet not available at school/ university Others There are no barriers at all 40% 36% 31% 25% 19% 19% 15% 10% 10% 7% 7% 5% 3% 3% 16% Nairobi (253) Mombasa (179) Eldoret (98) Kisumu (120) Nyeri (100) 37% 41% 25% 24% 20% 21% 21% 14% 11% 8% 7% 6% 3% 0% 3% 36% 31% 34% 27% 18% 15% 18% 18% 7% 14% 9% 9% 7% 8% 2% 40% 32% 34% 19% 14% 16% 15% 6% 5% 4% 2% 8% 1% 1% 0% 58% 43% 38% 33% 15% 24% 3% 14% 18% 23% 16% 7% 7% 8% 3% 30% 25% 26% 21% 27% 20% 19% 19% 6% 2% 1% 6% 4% 1% 6% Base : Total Sample (750) Unavailability of computers accompanied with theirs high cost as well as the costs of internet connections are the main barriers to the use of ICT Residents of Kisumu are mostly affected by these barriers compared to respondents from other cities. Copyright IDC. Reproduction unless All rights reserved. Base is=forbidden The figure inauthorized. parenthesis represents the base of the respective category Recap of Main Findings Acquiring ICT skills in Kenya is significantly affected by the overall social status of households and respondents The unavailability of PC and internet at homes due mainly to their high cost and the inability of respondents to purchase them emerges as the main barrier against ICT knowledge Another barrier is the absence of internet infrastructure in some neighbours which is prohibiting those who are financially capable (SCL AB) form enjoying this service This is leading to the fact that most internet access is done via mobile or from places outside home where respondents are satisfied by its cost, speed and reliability Usage of PC, internet and mobiles is generally limited to basic features The same main barriers (cost and unavailability of PC and internet) that are reducing the use of internet and PC are also preventing respondents from taking ICT training courses With these factors pressing, only 16% of respondents have been trained on ICT skills in the last year Respondents are aiming to increase their general basic skills for using mobiles, PC and internet. They reflect less desire to learn advanced features Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 59 Business Survey Highlights Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 60 Business Digital Presence Which of the following does your organization have at present? 0% 10% 20% Website e-Newsletter Online advertising/banners Profile on social networking websites Blog Sponsored presence/listing on other websites Others Nothing Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 30% 40% 50% 60% 70% 80% 90% 100% Business Digital Presence Constraints for internet usage Don't Know 0.52% Nothing 2.07% Other 6.74% Internal ICT infrastructure 18.13% Quality of Service 27.98% Internet prices 20.21% Internet not necessary or relevant to activities 5.70% Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Internet availability/cove rage 18.65% Business Digital Presence Total number of full time employees that have access or use shared / dedicated PC Large (500+ employees) Less than 30 30-49 employees 50 - 99 employees Medium (100-499 employees) 100-499 employees 500-999 employees 1000-4999 employees More than 5000 employees Small (30-99 employees) 0% 10% 20% 30% 40% 50% 60% Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 70% 80% 90% 100% Awareness and Usage of e-government services Business licensing e-registry Report Corruption online Customs Services online Submit Tax Returns online - E-government services used for work purposes 0% Not aware Aware but have not used 10% 20% 30% 40% Used more than a year back Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 50% 60% 70% Used in last year 80% 90% 100% Satisfaction with e-government services 0% 20% 40% 60% 80% Satisfaction with different e-government services offered Types of e-services available i.e. variety Quality of e-service i.e. accuracy, response time, etc. Availability i.e. uptime Security Overall Very Dissatisfied Dissatisfied Neutral Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Satisfied Very Satisfied 100% 120% Recommendations IT Skills Gaps IT Skills Macro Area Details Increase output of number of skilled staff Enhance quality of skills Protect local jobs & stem brain drain Action Broad Recommendations Awareness programmes at education institutions on: business needs vis a vis courses taken; type of skills in high demand for the next 3-5 years current MIXTURE of skills needed attract the youth via promotional campaigns Include middle & lower tiers of educational institutions to get Focus connected Bridging programmes to involve academia, graduates and ICT Business leaders Curriculum refresh and plan to do this regularly Inclusion of basic soft skills courses as part of the curriculum Establishment of Industry Standards, Accreditation and Ethics body Specialized funding for ICT courses Focus Partner with training/ICT companies and ensure training availability Mechanism to balance the need for expat labour vs skills transfer value Incentivize Diaspora to reverse brain drain More attachment programs and internships with technology companies Consider to learn and apply Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Recommendations Residential Usage Residential Usage Macro Area Details Action increase e-govt services awareness Focus Broad Recommendations Awareness programmes on services currently offered and follow up on suggested online government services Leverage mobile operators to update citizens on government Focus services vis SMS (subsidized cost for government for bulk SMS). Deploy relevant USSD driven services for citizens Solicit feedback on content of interest, esp. from non-users Create awareness on other content and services Content - review feedback on content most used and share with beneficiaries of digital content funds to take ICT Adoption Consider action/innovate/respond Close collaboration with media to pursue the internet as a channel for delivery. Address costs - See macro item COST below Access - see macro item INFRASTRUCTURE and COST below Prioritized subsidies of public access centers after evaluation Provide infrastructure support and services subsidies Cost of Focus Re-animate local assembly initiatives through vendor PPP and with services/Devices political will increase e-govt services usage Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Recommendations Business Usage and Costs Cost Business Usage Macro Area Details Action Broad Recommendations e-govt services awareness Focus Awareness creation on existing content and services Leverage on high internet adoption to interact with businesses more via a various databases (e.g. customs, taxes, registry, immigration etc) e-govt services usage Focus Roll out more services and solicit feedback on what is needed Skilled Staff Monitor See SKILLS macro ICT Adoption Internet Services PC Costs Mobile Device Costs Cost of services and Quality of Services - need to sensitize business Monitor users of their rights in collaboration with the sector regulator. Collaborative campaigns. Consider Further subsidize public access areas, secondary schools Consider Revive local assembly initiatives (e.g. Nigeria with Zinox) Consider Partnerships with vendors of low cost devices, tap into local application community Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Recommendations Channel & Infrastructure Channel Macro Area Details Broad Recommendations Vendor confidence & investment Monitor See Skills Macro Above See SKILLS Macro above Foreign Focused marketing & local promotional events that explicitly illustrate strengths Investment Nurture Tier 2 players as possible partners through capacity building, seed Focus funding, preferential treatment in government procurement Tier 1 VAR Monitor Tier 2 VAR Infrastructure Action Last Mile Access Backhaul to remote areas Power Develop plans to help elevate Tier II players into Tier I players Business Incubation Initiatives Focus Capacity building outside urban areas and create employment Pursue CCK about USF plans and enjoin KITCB in discussions on ICT Access Gaps Consider Collaborate with CCK to sensitise operators on USF Develop a PPP framework & depart from ad hoc, covertly commercially oriented PPPs that lack synergies and leveraging value. Consider wireless/satellite technology elements in national infrastructure plans for remote areas to mix with other technologies for last mile access Offer subsidies (and reward schemes) to operators with renewable energy focus or innovation that address power issues Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Interventions for Recommendations Macro areas addressed Financial Infrastructure Skills Residential Channel Cost Private Public Partnerships Infrastructure Skills Residential Cost Regulation Business Residential Awareness Skills Business Residential Content Skills Business Residential Curriculum reform Infrastructure Skills Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. Channel Thank You Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 71