Proposed-National-Broadband-Strategy-2018-2023

P ROCESS 14

This strategy has been crafted through extensive consultations with stakeholders, including government representatives, broadband users, civil society, and international partners, who contributed valuable insights and expertise These discussions highlighted the essential role of the broadband ecosystem in enhancing the overall economy, reflecting inputs from various sectors and governmental bodies.

Following the expiration of the first National Broadband Strategy (NBS I) from 2013 to 2017, Kenya's Ministry of ICT initiated a review to assess the country's performance and guide the development of the second edition of the National Broadband Strategy An inter-agency multi-stakeholder team was formed to ensure the strategy addresses the diverse needs of all sectors The review process involved thematic working groups that explored the realization of initial targets, identified challenges, and evaluated the feasibility of those targets Data analysis was conducted using the Statistical Package for Social Science (SPSS), which included coding, editing, and cleaning of data Findings were organized by specific questions and respondent categories to facilitate thorough analysis and reporting An inductive data analysis approach was utilized to uncover patterns and themes from qualitative discussions and interviews, with visual representations such as tables, graphs, and pie charts created to effectively communicate the results.

D EFINITION OF B ROADBAND 14

Broadband, as defined by NBS in 2013, refers to always-on connectivity that provides a minimum speed of 5 Mbps for homes and businesses, facilitating high-speed access to voice, data, video, and development applications However, to create a comprehensive definition for Kenya, it is essential to incorporate factors such as quality, affordability, security, and the goals outlined in Vision 2030 Therefore, for the purposes of this strategy, broadband in Kenya encompasses these critical elements.

“ Connectivity that delivers interactive, secure, quality and affordable services at a minimum speed of 2Mbps to every user in Kenya ”.

R ATIONALE FOR THE N ATIONAL B ROADBAND S TRATEGY 15

The NBS 2013 – 2017 aimed to ensure universal access to high-speed and reliable broadband networks across the country, promote the generation of local and relevant content, and empower all citizens, including primary school children and adults, through digital literacy and awareness It sought to nurture a vibrant and well-funded innovation ecosystem to engage youth in developing creative ICT solutions Additionally, the strategy emphasized the importance of robust ICT policy, legal, and regulatory frameworks as essential enablers for its successful implementation.

1.3.1 Growth of ICT Sector in Kenya

Over the past ten years, Kenya's ICT sector has seen remarkable growth driven by liberalization and strong regulations from the Communications Authority of Kenya (CA) Despite significant investments in ICT infrastructure, the Ministry of ICT remains concerned about the persistent digital divide in internet access across the country.

As of December 2017, voice services experienced remarkable growth, reaching over 94% of the population; however, this trend does not extend to high-speed Internet or data services.

In 2017, Kenya had 33 million Internet users, yet less than 1 million were subscribed to broadband services This highlights a significant issue: despite the country being linked to four international undersea fiber optic cables, broadband adoption remains surprisingly low.

Despite interventions by MoICT such as investment in the National Optical Fibre broadband infrastructure (NOFBI) to increase broadband access, the following gaps remain pertinent:

(i) The need to clearly define broadband for Kenya

(ii) Broadband has not reached most parts of rural Kenya

(iii)Last mile connectivity is still a challenge

(iv) High broadband charges (exorbitant cost of broadband) in Kenya (v) Lack of relevant digital content and applications

(vi) Shortage of demand side skills to enable broadband services to be used effectively

(vii) Lack of infrastructural sharing framework that has somewhat impeded network rollout across Kenya

(viii) Incoherent investment models, construction costs, and collaboration across the industry chain

(ix) Insufficient levels of trust in and security of broadband.

(x) Limitations related to broadband devices, which are both demand enablers and e-waste contributors.

(xi) Limited innovative broadband services that are relevant for uptake across all socio-economic sectors to improve efficiency in these sectors and awareness of such services.

(xii) Governance and delivery framework for broadband

(xiii) Broadband vision for Kenya

Broadband access is globally acknowledged as a catalyst for economic growth and socio-economic progress The government aims to utilize information and communication technologies (ICTs) to implement its development strategies, including Vision 2030 and the Big 4 Agenda, which focuses on food security, universal health coverage, affordable housing, and enhancing manufacturing.

In this regard, this NBS 2023 is an outcome of a comprehensive review of NBS I and best practice benchmarking which addresses the gaps in the implementation of NBS

I while providing a roadmap for “Kenya Connected by 2020” and for other national development agendas by, among other initiatives: -

• Introducing a State funded subsidy to expand broadband networks across Kenya

• Encouraging technology pilots to stimulate innovations

• Encouraging cost reduction through network sharing

• Embracing public private partnerships that spur development

• Creating enabling institutional, regulatory, policy and legal environment

• Introducing incentives that encourage investment in high cost areas

• Elaborating on the specific role of the Universal Service Fund (USF) in complementing the overall strategy

• Enhancing the governance and delivery structure for broadband in order to realise its benefits across all sectors of the society

• Comprehensively defining broadband for Kenya

• Reviewing the broadband vision for Kenya

An evaluation of the NBS 2013-17 (NBS I) targets showed that most objectives were not met, with some being overly ambitious and suffering from inadequate governance and delivery structures The strategy placed insufficient emphasis on the demand side of broadband, neglecting key drivers such as privacy, security, affordability, innovation, and awareness, while focusing more on supply-side aspects like infrastructure rollout NBS 2023 aims to build on previous gains and address the identified gaps from the evaluation of NBS I.

B ACKGROUND 16

Information and Communication Technologies (ICTs) are recognized worldwide as crucial drivers of socio-economic development When effectively implemented, these technologies have the potential to significantly reduce or even eradicate poverty and social inequalities To fully leverage the developmental benefits of ICTs, a coordinated and strategic approach to the ICT sector is essential.

1.4.1 Overview of Broadband in Kenya

Kenya has significantly advanced in promoting ICT services, boasting nearly 44.1 million mobile subscriptions for a population exceeding 46.4 million However, the digital divide remains a critical issue that must be addressed to ensure all Kenyans can engage in the knowledge economy In several regions, individuals must travel over 2 kilometers to access mobile signals, particularly in 13 remote counties, including Turkana, Mandera, and Tana River Furthermore, access to reliable Internet and data services continues to be elusive in many areas of the country.

In 2016, the CA conducted an ICT Access Gaps Study to identify significant access gaps across the country The study revealed that over 580 sub-locations have less than 50% GSM population coverage, with 164 lacking any mobile signal Additionally, 2,221 sub-locations reported less than 50% 3G coverage, and 1,221 of these have no access to 3G services at all The findings indicate a critical lack of broadband services, with 50% of locations lacking 3G and 83% of land mass without broadband coverage Furthermore, fiber optic cables cover only 60,000 km, representing just 17% of the land area Addressing these digital divide challenges necessitates a collaborative effort from all stakeholders.

In an effort to bridge these gaps, CA is currently implementing two flagship projects through the mechanism of the Universal Service Fund (USF), namely:

The Voice Infrastructure and Services Project aims to provide basic mobile voice services to all sub-locations across the country In the 2017/2018 financial year, the Authority successfully connected 78 previously unserved sub-locations.

(ii) The Education Broadband Project aimed at facilitating broadband connectivity to all public secondary schools in the country In the Financial year 2017/

2018 the target has connected a total of 896 public secondary schools.

The 2013-2017 Broadband Strategy highlighted a significant gap in the national ICT policy, noting that the existing policy, legal, and regulatory frameworks inadequately addressed broadband access, usage, benefits, and security concerns Additionally, the institutional framework for broadband delivery required further enhancement to effectively support these areas.

Key evaluation questions that informed the development of NBS 2023 revolved around the following issues:

(ii) Broadband outcomes and impacts;

(iii)Policy, Legislation and Regulation;

(v) Monitoring and Evaluation for broadband;

(viii) Institutional Framework for Broadband strategy delivery;

(ix) Relevance of broadband to the SDGs, Vision2030 and the Big 4 agenda; and

1.4.2 Drivers of Uptake of Broadband

The successful adoption of broadband is essential for a thriving broadband ecosystem, requiring both demand and supply sides to adapt to market dynamics Key demand-side factors include providing relevant content, affordable connectivity, quality service, capacity building, education, awareness, and online security On the supply side, a supportive legal, policy, and regulatory framework is vital for fostering competition, flexibility, and cooperation Regulators should incentivize investment through tax breaks and promote cooperative business models, while service providers can address challenges like the digital divide by adopting progressive practices such as infrastructure sharing Additionally, government support, investment, income levels, population density, and education should be considered as critical drivers of broadband expansion.

1.4.3 Emphasis of the National Broadband Strategy

The strategy emphasizes the focus of NBS I and other initiatives launched since 2013, aiming to achieve its implementation targets by addressing identified gaps It outlines specific actions to rectify past shortcomings, particularly noting that previous ICT strategies, including the Kenya NBS, have predominantly concentrated on the supply side of broadband rather than the demand side To foster the development and diffusion of broadband, this strategy will prioritize the creation of policies, legislation, and regulations that emphasize a balanced approach.

(i) Policy framework on broadband, namely a review and alignment of the

National Information and Communications Policy guidelines to reflect issues of broadband, create a National Broadband Policy 1 and leverage on regional and international frameworks for collaboration on broadband.

The legal and regulatory framework governing broadband in Kenya necessitates a comprehensive review and alignment of existing legislation, including the Kenya Information and Communication Act CAP 411A and other pertinent Acts such as the Roads Act and Building Code, to ensure compliance with the Constitution of 2010 Additionally, it is essential to update relevant regulations to align with the revised legislation.

Cybersecurity is a critical concern in the broadband sector, especially in light of the numerous cyber breaches that result in significant financial losses and privacy violations across various industries Addressing these issues is essential to fostering trust and confidence in broadband services, ultimately encouraging greater adoption of these technologies.

In March 2006, the Kenyan Government published the Information and Communications Technology Sector Policy Guidelines in the Kenya Gazette Notice Vol CVIII – No 24 These Guidelines emerged after a thorough consultative process involving various stakeholders, marking the most recent National ICT Policy for Kenya.

To address the identified gaps in the National Broadband Strategy I and to harness broadband for socio-economic development, this National Broadband Strategy focuses on seven key thematic areas.

The inclusion of three additional thematic areas—broadband services, broadband devices, and privacy and security of broadband—addresses the essential demand side of broadband These areas emphasize the importance of quality services, the devices needed for accessing broadband, and the critical concerns surrounding privacy and security in broadband usage.

V ISION AND P RINCIPLES 19

This national broadband strategy has a vision and a set of principles that guided its development and will also inform its implementation over the 2018-2023 period

The vision of this NBS envisages the contribution of broadband to the realization of Vision 2030 and is as follows:

“A globally competitive knowledge-based society enabled by secure and fast broadband connectivity”

The central focus of this strategy is to ensure "broadband for all," guaranteeing that every citizen has access to secure, high-quality, and affordable broadband services This initiative aims to provide equitable access to broadband, enabling individuals to leverage all available opportunities in their daily lives.

This strategy is based on a set of five principles that have been identified and are listed and explained as follows:-

• Promotion of National values towards achievement of Vision 2030

This strategy is essential for achieving Vision 2030, emphasizing the importance of equity, cohesion, and social inclusion as outlined in Article 10 of the Constitution It aims to ensure that the benefits of broadband are accessible to everyone, including special interest groups By considering the diverse needs of society, the strategy proposes actionable areas that, when effectively implemented, will promote equitable inclusion and unlock the transformative potential of broadband for all.

• Awareness creation, security, education, research and innovation

The shift towards a knowledge-based society is accelerating, with data and online presence increasingly recognized for their economic and social value High-speed broadband has become essential, necessitating the development of technical skills, user capacity, education, awareness, research, and innovation This strategy aims to realize the broadband vision by emphasizing these critical components.

• Collaboration, coordination, integration and sharing

A strong broadband ecosystem relies on collaborative and integrated approaches across operational, technical, and policy levels, fostering the sharing of ideas and resources to achieve strategic goals This principle is essential for meeting the challenges of the knowledge economy, particularly in combating cybercrime and enhancing cybersecurity, as well as in the execution of the National Broadband Strategy (NBS) 2023 initiatives.

• Open access, technology and network neutrality and competitiveness

The effectiveness of this strategy depends on a supportive legal, policy, regulatory, and institutional framework that recognizes both the supply and demand aspects of broadband.

Creating an environment that emphasizes market mechanisms, flexibility, and international cooperation is essential for achieving a balance between broadband demand and supply This approach aims to enhance the overall broadband vision and foster positive outcomes in the industry.

S UPPLY AND D EMAND OF B ROADBAND 20

The deployment of broadband should encompass both the supply and demand aspects of broadband

Effective attention to demand-side factors, beyond just affordability, is essential for increasing broadband adoption Key considerations in this context include privacy and security The European Union (EU) emphasizes these points in its 2013 communication titled "An Open, Safe and Secure Cyberspace."

Information and communications technology (ICT) is essential for economic growth, serving as the backbone of all sectors It supports complex systems that sustain our economies, with numerous business models relying on constant Internet access and efficient information systems.

This EU position has important implications for the development of broadband in Kenya; specifically with regard to the demand side of broadband

The rollout of broadband infrastructure and services across the country will utilize both wired and wireless connectivity, with an emphasis on expanding existing broadband and cellular coverage through the Universal Service Provision (USP) initiative and universal service fund (USF) High-impact economic areas will see upgrades to broadband services, achieving speeds exceeding 10Mbps Given the high costs of infrastructure development, the government should pursue Public Private Partnerships (PPPs) with telecom companies to implement national broadband infrastructure projects in targeted regions To ensure effective broadband supply, a comprehensive national broadband policy, along with enabling legislation, regulation, and an institutional framework, is essential.

Figure 1: Broadband Strategy Implementation Focusing on Demand and Supply

Source: Adapted from Malaysian Broadband Initiative http://www.skmm.gov.my/Sectors/Broadband/National-Broadband-Initiative.aspx Accessed July 20, 2018

Understanding that supply alone is insufficient, an effective strategy to encourage demand with the emphasis on Awareness, Attractiveness and Affordability as part of

The promotion of broadband is essential and should be actively pursued Continuous involvement from both government and private sectors is crucial for effective awareness programs and capacity-building initiatives To enhance the appeal of online content, it is important to focus on the promotion of e-Government, e-Education, and e-Commerce, as well as the development of local content, including materials in local languages.

Broadband is crucial for socio-economic development, as it facilitates access to essential services and drives e-commerce, which is increasingly becoming a primary method for delivering business services To maximize its potential, it is vital to ensure that broadband is affordable and accessible to all citizens without discrimination Currently, individuals spend an average of 45% of their income on broadband, far exceeding the World Bank's recommended threshold of 8%, indicating that prices are approximately 20 times higher than they should be Additionally, the high cost of devices poses a significant barrier to broadband adoption.

E QUITY AND S OCIAL I NCLUSION 22

This strategy emphasizes the constitutional foundation for applying rights through initiatives that support children, individuals with disabilities, youth, minorities, marginalized groups, and the elderly It includes efforts to enhance digital literacy, provide access to devices and materials for persons with disabilities, implement affirmative action programs in underserved areas, and promote full participation of all individuals, including older members of society, in community affairs.

To enhance broadband adoption among people living with disabilities (PWDs), it is crucial to identify and address existing barriers to accessibility Current initiatives have made progress, yet significant gaps remain that must be filled to ensure inclusive access The government plays a vital role in meeting the diverse needs of PWDs to facilitate their integration into the digital landscape.

 Improve implementation and enforcement of existing accessibility laws;

 Gather and analyse more information about disability-specific broadband adoption issues;

 Coordinate accessibility policy and spending priorities;

 Update subsidy programs and ensure the availability of training and support; and

 Update its approach to accessibility problem solving.

Among other actions, this effort will involve the modernization of broadband accessibility laws, rules, and related subsidy programs by the CA, the Judiciary andParliament.

A SSUMPTIONS 22

Successful broadband development hinges on several key prerequisites, including the establishment of a robust policy, regulatory, and institutional framework by the government.

3 https://transition.fcc.gov/national-broadband /equal-access-to-broadband-paper.doc that will facilitate the delivery and uptake of broadband

(ii) A robust broadband strategy delivery structure will be provided to include leadership, accountability; and monitoring and evaluation framework

(iii)The strategy will be private sector driven

(iv) All stakeholders will effectively play their respective roles

O UTCOMES OF B ROADBAND S TRATEGY 23 2 RELEVANCE TO NATIONAL LEGAL, POLICY AND REGULATORY FRAMEWORKS AND NATIONAL DEVELOPMENT PLANS

The implementation of this strategy will result in a number of outcomes that are pertinent to the country’s development plans The outcomes are as follows:-

(i) Last mile infrastructure is provided by fixed or wireless means to achieve 95

(ii)Fixed infrastructure is available up to the level of the ward

1.9.2 Services, Content and Applications Outcomes

There is a government bus architecture that enables all government applications to share this data

(i) There is a government data presentation standard and data classification mechanism that underpins a vibrant and effective government data digitisation programme

All essential government data, including information on individuals, land, infrastructure, assets, and institutions, is governed by a clear legal framework This data is available in an easily accessible digital format and is effectively protected and maintained.

(iii)Kenya’s creative economy is well-equipped through capacity building,

Figure 2: NBS II Overview technology, services and institutions to design, create, register, publish and market at least 100,000 digital works a year.

(iv) Affordable and quality services and platforms exist to enable Kenyan businesses to quickly exploit digital technology to support their operations, strategy and marketing.

1.9.3 Capacity Building and Innovation Outcomes

Kenyans have basic digital literacy where

Every year, over 10,000 graduates emerge from a diverse range of quality ICT, engineering, and specialist ICT degree programs Additionally, a digital literacy program for adults is accessible through affordable e-learning options and cyber cafes, ensuring that all adults can develop essential digital skills.

Kenyan youth are encouraged to embrace a culture of innovation and fabrication, supported by accessible centers that provide affordable technology, equipment, and skills across the nation Additionally, innovators receive assistance in cost-effectively protecting their intellectual property.

Digital education is seamlessly incorporated into the basic education system, with tertiary colleges and TVETs offering both local and international certification courses This integration enables approximately 50,000 Kenyans to obtain ICT-related professional certifications annually.

Every citizen in Kenya possesses a broadband device that doubles as an identity tool, enabling access to vital information, communication, e-learning, e-health services, and emergency management These devices are locally assembled and are affordable, ensuring that a large segment of the population can benefit from their capabilities.

2 RELEVANCE TO NATIONAL LEGAL, POLICY AND REGULATORY

FRAMEWORKS AND NATIONAL DEVELOPMENT PLANS

Information and Communication Technology (ICT) and broadband serve as a crucial economic sector while also acting as a catalyst for social, economic, and political development in Kenya, as outlined in the ICT for Development (ICT4D) framework This highlights that broadband is not merely an end goal but a vital tool for achieving various objectives It supports the principles set forth in the Constitution of Kenya 2010, particularly in relation to rights and justice, aligns with Vision 2030's focus on social justice and wealth creation, adheres to Sustainable Development Goal 4 regarding ICT policies, and contributes to the Big 4 Agenda.

Industry, Innovation and Infrastructure (Goal 9) which supports other SDGs such as

The Government of Kenya’s Big 4 Agenda aligns with Sustainable Development Goals (SDGs) such as Zero Hunger (Goal 2), Good Health (Goal 3), and Sustainable Cities and Communities (Goal 11) Additionally, the strategy supports SDG 4 (Quality Education) through capacity building and emphasizes the importance of partnerships and collaborations (Goal 17) Furthermore, it is consistent with key national policies, including the ICT policy, ICT master plan, Science, Technology & Innovation Act, Industrialization Act, and the Computer and Cyber-crimes Act, among others.

B IG F OUR A GENDA 25

To foster an effective information society and actively engage in the knowledge-based economy, it is crucial to ensure access to high-quality, affordable, secure, and widespread broadband This connectivity is essential for the government to drive development for all citizens The National Broadband Strategy (NBS) provides the necessary framework to attract both foreign and local investments, promoting manufacturing industries that will generate new job opportunities for Kenyans and deliver quality products to the population.

NBS 2023 aims to enhance the use of broadband ICT across Kenya's political, social, and economic sectors, supporting the Vision 2030 development agenda It aligns with the Government's Big 4 Agenda by promoting efficiency through broadband services in ICT for development (ICT4D), fostering job creation, and ensuring access to quality, affordable products via device manufacturing The strategy also leverages AI and IoT technologies to improve sectors such as affordable housing, food security through enhanced supply chains, and universal healthcare delivery through e-health initiatives.

The NBS 2023 aims to advance the Big 4 development agenda by enhancing health information systems, agricultural information systems, supporting manufacturing, and promoting sustainable cities To achieve these objectives, specific policy decisions will be implemented to effectively realize the goals of the Big 4 Agenda.

• Integrate BB in the Big 4 sectors

• Funding for building of the Big 4 architecture

• Geospatial mapping of all buildings and land

4 We made a commitment to on implement the SDGs

Broadband is poised to significantly enhance Kenya's constitutional and development goals, making it a prime candidate for considerable investment from the government and partners.

B ROADBAND D ELIVERING THE B IG F OUR A GENDA 27

The NBS 2023 thematic areas are strategically aligned with the Big 4 Agenda, highlighting the solutions that will emerge from the Strategy's implementation Table 1 illustrates how the NBS will be integrated to effectively achieve the objectives of the Big Four Agenda.

Table 1: Broadband Delivering Big Four Agenda

Affordable Housing Universal Healthcare Manufacturing Food Security

Theme Infrastructure and devices Services,

Capacity Building and Innovations Finance and

Provide core and supporting infrastructure, and end user devices to deliver broadband in the Big 4 sectors

- Development of appropriate and good quality services specific to the Big 4 sectors - - Development of content, applications and innovative services in the Big 4 sectors

Formulation of policies, enactment of laws and development of regulations to guide the secure use of broadband in the Big 4 sectors

-Training and education of the Big

4 sector members on adoption and use of broadband in delivering on the Big 4

-Public awareness creation for broadband

-Providing incentive(s) for investors in broadband in the Big 4 -Government stimulus fund to spur uptake /use of broadband to deliver the Big 4

Enact laws to protect broadband users and prosecute cybercrimes

Affordable housing Universal Healthcare Manufacturing Food Security

Broadband ready housing: Have legislations for installation of cables in all modern housing to ease accessibility of Internet at home.

To ensure comprehensive broadband access for all health facilities, initiatives like the NOFBI should be implemented in partnership with private sector efforts Collaborating with KPLC, which is connected to most health facilities, can facilitate this connectivity effectively.

(apps) and content that can be

•Enhance manufacturing of broadband devices within the country

This will in turn have affordable devices in the country

Enhancing supply chain efficiency involves leveraging broadband internet to align the demand and supply aspects of the food value chain This approach connects production areas directly to relevant markets, ensuring that all citizens, particularly those with smartphones, can access essential healthcare services related to food consumption.

Big Data analytics: data on staffing, accountability and quality can be utilized to ensure better leadership and governance of health facilities.:

Telemedicine : to assure the population of accessible healthcare by affording them ability to consult professionals globally.

Health information; use broadband in the health facilities to store and access health information including patient details and health record

Security of housing: Ensure secure residences by promoting installation of ICT security gadgets through an affordable business model to avail devices

Monitoring of heath: Track all supply and usage of healthcare services and facilities and ensure timely availability of all necessary healthcare (facilities and services)

-Manufacture quality products through adoption of global standards for locally manufactured ICT devices

-Job creation through apps development and content creation and innovation

Quality of food: Verify quality of the food consumed and ensure only quality foods are consumed by the whole population.

Digital agriculture: such as the use of IoT technologies to improve farming and food production

To support the Big 4 Agenda, promoting broadband in key sectors is essential, along with providing incentives for the development of services, content, and e-applications that enhance efficiency A recommended study should identify opportunities for broadband utilization in these sectors, ensuring appropriate incentives are in place to maximize these opportunities This approach aims to fully realize the potential of the Big 4 sectors, contributing to socio-economic transformation during the NBS 2023 period.

B ROADBAND FOR A LL 29 3STRATEGY

NBS 2023 aims to create a connected Kenya, where users, even in the most remote areas, can effortlessly communicate, transact, and interact through fast, reliable, secure, and affordable internet access This connectivity will empower individuals to receive information, share content, engage in trade, socialize, and access a variety of services made possible by broadband-enabled opportunities.

The effectiveness of this strategy hinges on the broadband solutions and services provided to individuals, serving as a gateway to the vast opportunities emerging in the fourth industrial revolution.

In this regard Broadband for Wanjiku aims to among other things;

• Complement and drive other sectors and government agendas

• Provide access to global markets

Successfully implementing this strategy will create significant opportunities in research, communication, networking, career development, e-commerce, socializing, and innovation A strong broadband ecosystem will improve information access and utilize ICTs as essential enablers for achieving national, regional, and global economic goals, including Vision 2030 and the Big 4 Agenda.

2063 and the Sustainable Development Goals to which Kenya subscribes.

The collaboration between the government and private sector through ICTs is essential for enhancing digital presence and improving access to vital services, including biometric enrolment for the National Hospital Insurance Fund, establishing a central database for farmer registration, and providing market information on agricultural products Additionally, expanding broadband connectivity will boost productivity, foster innovation, and create talent hubs, ultimately stimulating economic growth and generating employment opportunities.

ICT companies can enhance investment opportunities by being listed on Stock Exchanges, while mobile commerce plays a crucial role in offering digital financial solutions and promoting inclusion The ITU m-Powering report 2018 emphasizes the need to identify local challenges that can be effectively tackled through ICT, fostering increased internet usage through collaboration among government, private sector, and development partners.

The focus of this strategy is on seven thematic areas, which are Policy, legislation and regulation; Infrastructure and connectivity; Services, Content, and

5 https://www.itu.int/en/ITU-D/Initiatives/m-Powering/Documents/Mpowering_Report_18-00029-v2.pdf

Applications; Capacity building and Innovation; Devices; Privacy and Security; Finance and investment; and the accompanying institutional framework to deliver the strategy.

This chapter explores the strategic challenges associated with the development of the broadband ecosystem, detailing the current landscape and conducting a gap analysis It identifies opportunities and formulates strategic objectives, culminating in an implementation plan for each thematic area included in the appendix.

Besides the strategies that have been provided under each thematic area, other strategic initiatives under this strategy are to:

• Introduce State funded subsidy to expand broadband networks across Kenya

• Encourage technology pilots to stimulate innovations

• Encourage cost reduction through network and infrastructure sharing

• Embrace public private partnerships that spur development

• Provide enabling institutional, regulatory, policy and legal environment

• Introduce incentives that encourage investment in high cost areas

• Elaborate on the specific role of the Universal Service Fund (USF) in complementing the overall strategy

• Enhance the governance and delivery structure for broadband including provision of a robust M&E for the strategy

In addition to addressing each thematic area, this strategy encompasses:-

The implementation of broadband flagship projects should adopt a programmatic approach that delineates clear ownership, responsibilities, expected outcomes, key performance indicators (KPIs), targets, and the methods and frequency of measurement Additionally, it is essential to focus on the quality, security, and affordability of broadband services to effectively meet the demand side of broadband needs.

(iii)Comprehensive definition of broadband for Kenya to also include quality, affordability, security, and the overarching aspirations of Kenya.

(iv) Broadband for all where people living with disabilities, minorities and the vulnerable individuals are not left out of broadband

Table 2: Pending legal instruments and Fundamental Freedoms

P OLICY , L EGAL AND R EGULATORY E NVIRONMENT 31

The Policy, Legislation, and Regulation (PLR) aim to enhance safety and service quality while promoting widespread broadband access It seeks to encourage diverse content and applications, ensure broadband affordability, and support ongoing digital literacy initiatives that meet the needs of all citizens.

Several legislations dealing with various issues that affect the broadband have been enacted:

• Access to Information Act No 31 of

• 2016Computer Misuse and Cyber Crimes

A number of pending broadband-enabling legislations, regulations, policy, and fundamental freedoms specific to ICT and broadband are presented in Table 2

Recent amendments to the Copyright Act aim to enhance the enforcement of copyright rights in the digital realm, addressing online infringement issues However, there are critical gaps that need to be filled to better support copyright holders These include the need for clearer definitions of online infringement, improved mechanisms for reporting violations, and stronger penalties for offenders Additionally, fostering collaboration between technology platforms and copyright owners is essential to create a more robust framework for protecting intellectual property rights online.

Thematic Area Policy Focus Strategy/Action

Infrastructure sharing Legislation updated to include broadband and as critical infrastructure

Relevant regulations to address each aspect of service and

Pending legislations, policy and regulations:

Data Protection (Article 31 of the Constitution)

Right to Information: Access to information Act 2016 Data Protection and Privacy: Data Protection and Privacy Legislation; pending but committee has been set up

The Media Council Act 2013 safeguards freedom of expression by protecting the rights of the media, while the Computer Misuse and Cybercrime Act 2018 addresses the criminalization of cyber violations to ensure the right to security Additionally, the pending e-waste regulations under the Environmental Management and Co-ordination Act (EMCA) 2015, Cap 387, aim to promote a sustainable environment through effective environmental audits.

-Data Protection -Electronic Transactions -Competition

-Language -Child Online Protection -Digitization of curriculum -Intellectual Property Rights -Public key fields content

Building -Local professional certification in critical Broadband areas -Intellectual Property Rights

To revive specialized institutions to support specialised skills and competencies required by Broadband related sectors

-Accessibility Ensure availability of genuine broadband access devices

Service to secure BB infrastructure (ii)Promote establishment of Independent cybercrime forensic organisations

(iii) Conduct education and regular awareness programs on online privacy and security to citizens

-Integrated infrastructure development -Special Purpose Vehicles

(i)Institutionalize multi- stakeholder approach to broadband development

(ii) implement innovative models such as Build, operate and transfer (BOT) upon assessment of their merit

Figure 4: Status on Policy, legal and Legislation

3 Regulations for Broadband under the NBS 2023

The following are the strategic issues with regard to law and regulation that will be addressed in this strategy

(iv) Opening vertically integrated markets

(vii) Privacy and data protection

(viii) Regulation of broadband content

The following regulatory actions will be taken to support the realisation the NBS

To ensure technology and service neutrality except where scarce resources are involved by promoting unified licensing frameworks capable of accommodating technology and service neutrality

To facilitate converged service availability and maximize value and use of spectrum by: -

• Ensuring flexibility in spectrum licensing and authorization (e.g enabling platforms such as spectrum trading to enable entry of secondary markets)

• Adopting flexible use rules for existing licenses

• Adopting internationally harmonised band plans during allocation and assignment of spectrum

• Use of market mechanisms to assign spectrum

To promote competition and entry whilst maintaining incentives for investment in new infrastructure and innovation

Promote infrastructure sharing (e.g through joint ventures) in order to reduce capital expenditures and operating expenses associated with rollout and operation of broadband

To foster innovative business models that attract investment throughout the broadband value chain, it is essential to clearly define the various markets involved, including the physical layer, active layer, and service layers.

To revise and reform governmental and private sector safeguards to promote trust, security, privacy and consumer protection in ICT services through the following strategies:-

To react to security issues after the fact (e.g in financial systems where the fundamental basis for security is undoing any transaction) by focusing on early detection and response

(2)Regulatory actions to ensure security

(i) Increase oversight and regulation of computer and communications technologies

(ii) Encourage institutions and companies to comport with best practices

(iii)Mandate a safety-culture approach to cybersecurity and privacy

(iv) Obligate companies to provide security and privacy mechanisms in their products

(v) Interpret laws (e.g torts) to include increased penalties for cybersecurity breaches

To enhance the security of communication networks, it is crucial to hold nodes accountable for their security measures This accountability allows administrators to identify vulnerable or malicious nodes effectively By implementing strategies to punish or isolate these compromised nodes, networks can deter future security breaches and promote a safer communication environment.

(vii) Use of economic incentives to promote security (e.g requiring that data breaches and non-compliance with best security practices be reported)

(i) Studies on how people apply or circumvent security systems in order to design more rational/responsive systems

(ii) Metrics for levels of security and values of assets to inform level of security necessary vis-à-vis absolute security

(iii)Research to counter the innovative capabilities and abilities of cybercriminals who are ever a step ahead

(4)Digital Literacy regarding cyber security

To educate users on digital vigilance including password use detection of potential threats

To formulate regulations to govern internet content in the framework of network neutrality

• Emphasizing informed consent where consumers freely give specific and informed indication of their agreement to data collecting and processing activities

Requiring increased transparency of data collection

Consumers need clear and accessible information to make informed decisions about how their personal data is collected and used This can be achieved through the use of straightforward privacy notices and by providing education on privacy issues.

• Transparency can also be enhanced using policies such as data breach notifications

Increasing responsibility of data controllers

Data controllers (DCs) must integrate robust privacy protections into their operations, emphasizing data security, reasonable limits on data collection, effective retention practices, and ensuring data accuracy This includes implementing comprehensive data management procedures throughout the entire lifecycle of their products and services.

• Especially among younger users, regarding the impact of broadband and new technologies on personal privacy

• Increased international cooperation in enforcement of privacy laws and data protection

To make regulations regarding content as follows:-

• Content regulation, including surveillance and monitoring of Internet use, needs to take into account the standards set by international human rights law

The right to freedom of expression should be fully guaranteed as a standard practice, with any limitations treated as exceptions This fundamental principle must remain unaltered, as emphasized in the report by the UN Special Rapporteur on the Promotion and Protection of the Right to Freedom of Opinion and Expression.

Implement graduated response measures, commonly known as three-strike laws, to address online copyright infringement Under this system, users would receive initial warnings for their first and second violations, while a third infringement could lead to penalties such as fines, imprisonment, and the suspension of Internet access, contingent upon judicial proceedings.

Copyright holders (CH) can collaborate with Internet Service Providers (ISPs) to combat copyright infringement effectively When an infringement is detected, the CH notifies the ISP responsible for the infringing IP address The ISP then identifies the customer associated with that IP and issues a warning, highlighting that copyright infringement violates the ISP's terms of service and may result in disconnection.

(3) Regulating Specific Forms of Content

Regulate content for protection of minors, prevention of vices, and protection of national security

The article highlights significant gaps in the current broadband infrastructure rollout, including a lack of synchronization among government entities, infringement on fundamental freedoms, and inadequate regulations for branding and technology compatibility It emphasizes the exclusion of persons with disabilities from broadband access and the absence of enacted e-waste regulations Additionally, it points out the depletion of resources necessitating infrastructure sharing, high ICT service costs, and the duplication of infrastructure efforts The existing national ICT policy fails to adequately address broadband access, use, and security, while the institutional framework for broadband delivery requires enhancement There is also a critical need for appropriate legislation to classify broadband as essential infrastructure.

• To elevate broadband to critical infrastructure status through legislation;

• To implement Cyber Security laws

• Inclusion of people living with disabilities (PWDs) in broadband, such as through audio signals

• Review of Tax policies, including exception of taxes on broadband devices

• Development of plan for new technology such as the 5G after Radio frequency meeting (the World Radio Conference 2018 schedule for in October

2018) by 2020; further the testing of 5G technology should be underway presently ahead of 2020

• More ownership and responsibility by government agencies

• Environmental impact assessment and Audit 2003 amendment underway to address environmental impacts of broadband

• To harmonize legislations across all the Counties and National government, and collaborative planning, deployment and maintenance of broadband

• Development and enhancement of Data Sovereignty law - e.g., Government to define standards and policies to be met to store, process and transmit

I NFRASTRUCTURE AND C ONNECTIVITY 37

While the private sector has significantly advanced infrastructure development, there remain critical areas where government intervention is necessary Targeted government participation should focus on identifiable gaps, especially as competition has made connectivity more affordable Historically, the government has invested over 200 million USD in the National Optic Fiber Backbone Infrastructure (NOFBI), which spans 6,400 km and reaches all 47 counties Additionally, satellite technology will be utilized where terrestrial options are not viable, employing multiple cost-effective broadband solutions However, challenges such as high spectrum costs and complex acquisition processes hinder wireless infrastructure expansion Moreover, the overall cost of deploying and maintaining infrastructure is exacerbated by energy shortages, inadequate road networks, wayleave issues, and security concerns that lead to vandalism.

The gaps, opportunities for improvement, strategic objectives and an implementation plan for infrastructure and connectivity under this Strategy are as follows:

6 For example, KPLC has over 2500, Liquid 4500, and Jamii over 2500 of optical fibre infrastructure length

• Quality of broadband services exhibit low speed connections and poor reliability

• Rural areas are seriously lacking in coverage

Broadband services face significant geographical limitations, with 50% of locations lacking 3G connectivity and 83% of the land area devoid of broadband access Additionally, fiber optic cables only span 60,000 km, representing a mere 17% coverage of the land.

• Parallel installations due to lack of coordination of infrastructure development which have resulted in reducing coverage, constraining investment in broadband and reducing ability of consumers to afford broadband

• Lack of sharing arrangement of critical infrastructure

• Low access to and uptake of broadband services (penetration of 39.7%)

Figure 5: Status on Infrastructure and Connectivity

• Increase broadband penetration in rural areas for socio economic development and transformation

• Increase broadband connection to the 47 Counties

• Stimulate demand for broadband services and entrepreneurships

• Increase investment in broadband services to realize better connections and speeds by providing incentives for investors

• Increase the number of collaborations for broadband infrastructure development

Figure 6: Kenya Broadband Penetration and Subscription

Figure 7: Mobile Technology Coverage in Kenya

• Treat broadband as critical infrastructure, sensitize everyone on the importance and use to elicit demand and uptake

• Harmonize development of infrastructure to reduce duplication and increase coverage

• Increase coverage and connection to public institutions, including schools, hospitals, and Government agencies digitization

• Extend Broadband Connectivity to cover all classified roads (A, B and C roads)

• Ensure open access to infrastructure for all

• Increase awareness of broadband to County governments, and use of broadband services

• Use USF to provide broadband in underserved areas like rural areas

• Review spectrum allocation and pricing mechanisms to make it more market responsive

• Introduce tax rebates/subsidies for deployment of broadband in marginalized areas to stimulate investment in and uptake of broadband

• National Government to facilitate access to national optical fiber broadband infrastructure (NOFBI) on an open access basis

• The national government to take charge of all supporting infrastructure including ducts, wayleaves

Open access refers to the ability of third parties to utilize existing network infrastructure for service provision, which is crucial for publicly funded national broadband networks and necessary to avoid economic bottlenecks that hinder competition There is a growing regulatory agreement advocating for open access to national broadband infrastructure, emphasizing fair, reasonable, and non-discriminatory access rather than solely promoting infrastructure competition This open access will be particularly enforced where public funding supports broadband and next-generation access rollouts, fostering network investment, preventing unnecessary duplication of facilities, and enhancing competition While infrastructure monopolies may appear practical in rural and developing regions, regulatory measures will be implemented to ensure these monopolies do not impede broadband development in Kenya.

S ERVICES , C ONTENT , AND A PPLICATIONS 40

Broadband services refer to professional solutions tailored for both enterprises and end users, focusing on technology applications These technology services deliver specialized, technology-driven solutions by integrating software, hardware, networks, telecommunications, and electronics.

“A means of delivering value to customers by facilitating the outcomes customers want to achieve without the ownership of specific costs and risks.” ITIL

A service is defined as the provision of a need or content facilitated by technology This NBS emphasizes alternative methods of delivering services and content beyond traditional offerings.

• Value Added Services (VAS) -news, heath, farming, education

• OTT services (Facebook, WhatsApp, twitter,)

Over-the-Top (OTT) Services

The increasing demand for bandwidth has led to a surge in over-the-top (OTT) services, which are becoming essential in the broadband landscape Popular OTT offerings span various sectors, including commerce (e.g., Jumia, Alibaba, Amazon), communication (e.g., WhatsApp, WeChat, Skype), and media (e.g., Netflix, YouTube) While consumers benefit from this exponential growth, traditional service providers are challenged by the shifting economic environment To address these disruptions, regulators play a crucial role as impartial mediators, ensuring the sustainability of the emerging ecosystem through regulatory obligations such as licensing, market accessibility, taxation, quality of service, pricing, interconnection, net neutrality, infrastructure responsibilities, and privacy.

This strategy advocates for the establishment of a regulatory framework that supports current service providers while encouraging the entry of new competitors This approach aims to stimulate innovation, broaden consumer choices, ensure high-quality service, protect user security, and make broadband services more affordable, all of which are essential for increasing broadband adoption.

A study contributing to the NBS 2023 development highlighted that services are costly and require quality enhancements It emphasized the necessity for content and applications aligned with the Government's Big Four agenda The goal to digitize core government registries and develop County Government management information systems remains unmet, with most counties still relying on manual payment services Additionally, while the targets for local digital content aimed for 75% in local languages, 20% for local language websites, and 20% for online educational programs, only 40% of local broadcast content has been achieved, leaving the other targets unfulfilled This lack of relevant digital content and applications is a significant barrier to broadband adoption.

Opportunities in services, content, and applicators focus on promoting content development through incentives, aligning offerings with the needs of the development sector, and conducting research to create innovative products and services.

Figure 8: Status on Service, Content and Application

Consistent with the identified gaps and available opportunities, the following strategic objectives will be pursued to improve the status of Kenya’s broadband with regard to Services, Content, and Applications.

• Undertake research and create innovation in the field of Applications and Content Development

• Enable profitable value chain for content, application developers, marketers and innovators.

• Endeavour to have rich multicultural and multilingual Kenyan content in cyberspace.

• Seek to avail digital information that supports an effective e-commerce, logistics and supply chain ecosystem in Kenya.

• Accelerate promotion of e-learning – e.g.by implementing schools

Several digitization projects are underway, including those for the Kenya National Hospital (KNH), the judiciary, the Civil Registration Department (CRD), curriculum development, and land management Additionally, key registries such as civil registers, national archives, judiciary records, land registries, and the companies' registry have been successfully digitized Currently, the active registries include the National Registration Bureau (NRB), Intellectual Property Rights System (IPRS), driving license records, the immigration registry for passports, and the companies' registry.

The Kenya Institute of Mass Communication (KIMC) collaborates with various prominent organizations, including the Kenya Broadcasting Corporation (KBC), IBM, Oracle, and SAP, to enhance media education and content development Key partners such as the Kenya Year Book, Kenya Film Classification Board, and Kenya Film Commission play vital roles in promoting quality media production Additionally, the Media Council of Kenya and the Kenya News Agency contribute to the regulation and dissemination of news, ensuring a robust media landscape in Kenya.

The digitization of records in Kenya encompasses various sectors, including persons, lands, assets, and institutions Currently, a significant percentage of these records have been digitized, enhancing accessibility Each Kenyan benefits from a growing number of digital products, while the availability of digital works in local languages is also on the rise Moreover, an increasing number of government documents are now accessible online, alongside the digitization of numerous public registries, contributing to improved transparency and efficiency in public services.

The establishment of service and content standards, coupled with capacity building and digitization technology, is crucial for the development of media cities or parks, such as Studio Mashinani Expanding the Kenya Institute of Mass Communication (KIMC) and promoting digital TV villages will enhance media accessibility Additionally, multilingual edutainment programs, including subtitles like those offered by Y254 and the Heritage Channel, will cater to diverse audiences, while connectivity programs will further bridge the digital divide.

• Promote universal access to digital content and services

• Put in place an open access policy to ICTs’ and Digital Content for e- government services in delivery of public service

• Promotion of emerging technologies in Fintech (Blockchain, Mobile Money, Infosec, Data Science/ Big Data)

• Promote provision of quality, affordable, accessible and relevant broadband services to all citizens

• Increase awareness and demand for broadband services

• Ensure sustainability of broadband content

• Protect consumer interests and ensure security in accessing broadband services

While details of implementation actions and outcomes on broadband services are presented in Appendix I-3, similar action plan for Content and Applications if found in Appendix I-4

C APACITY B UILDING AND I NNOVATION 43

The digital landscape presents significant opportunities for society, enabling access to vast information, innovative learning methods, and enriching life experiences while promoting cultural exchanges As citizens engage in various sectors such as education, health, agriculture, and government services, they are empowered to exercise their rights online However, realizing the potential of a bright digital future hinges on the implementation of effective capacity-building initiatives and awareness campaigns in information and communication technology (ICT).

This strategy aims to enhance awareness and build capacity for broadband access among citizens, ensuring equitable access for all It focuses on imparting essential knowledge, skills, and experience to enable individuals to fully leverage digital opportunities online Additionally, the strategy outlines specific approaches to cultivate advanced technical skills that will support the broadband ecosystem in Kenya.

• Limited awareness of broadband services

• The curriculum in schools and tertiary institutions is not aligned with the awareness and skills requirements of broadband/ ICTs

• Lack of synergy and collaborations between implementing agencies

• Inadequate training for new graduates

• Limited funding for skill development

Despite the existing gaps in the available technical and related capacity for broadband, there are opportunities to further enhance capacity and innovations in the broadband arena; these include:-

• Leveraging on existing infrastructure to deliver broadband

• Re-skilling the existing workforce on emerging technologies

• Partnerships with the robust private sector and training institutions

By implementing appropriate strategies, the expected outcomes in this thematic area are:-

• Increased awareness of ICT and broadband services

• Increased digital literacy of the general citizenry

• Enhanced high end technical skills

• Improved access and efficiency in delivery of e-Government services

• More informed citizenry on existing legal policies and regulatory frameworks

• Increased innovations that leverage on emerging technologies

Strategic objectives and an implementation plan for the CBI thematic area is presented in Appendix I-5.

Figure 9: Status in BB Capacity Building and Innovation

3.4.4 Broadband Innovations and employment projects

The CIH project aims to foster socio-economic development by creating digital job opportunities and promoting innovation, thereby supporting youth employment and initiatives aligned with the Big 4 Agenda Key projects will focus on e-agriculture and e-health applications, alongside the implementation of broadband innovation and employment creation efforts A detailed list of potential innovations and digital job roles is provided in Table 3.

Currently, the majority of citizens are well exposed to simple functions; searching, downloading, e-commerce and financial transactions, YouTube, among others Capacity building and innovation is characterised as follows;

The challenges of cyber security literacy in Kenya are compounded by a low level of device ownership and limited productive use of mobile broadband Many citizens rely on reference learning, yet there is a concerningly low number of Kenyans engaged in online jobs Additionally, the negative impacts of time wasted online and the scarcity of innovation hubs further hinder progress in the digital landscape.

Service Providers, AFRALTI, Universities, International certifications (ITU, CISCO, CTO, USTTI, UKTA), Korea Institute of Technology (KIST) at Konza, Incubation hubs, Cybersecurity research institute, KENET.

• No of students’ with professional certifications

• No of professional training institutions

• No of intellectual properties (IPs) (patents, utility models, etc.) registered in Kenya

• No of online jobs for Kenyans

To enhance research funding and foster industry collaboration, it is essential to integrate industrial attachments tied to manufacturing Strengthening the Presidential Digital Talent Programme (PDTP) involves building capacity at a strategic level, enabling participants to co-create and co-own educational content alongside professors, sharing both the content and its proceeds Additionally, promoting e-learning initiatives and developing comprehensive content programs will support the expansion of Business Process Outsourcing (BPO) in the region.

Table 3: Broadband Innovations and employment projects

Project Specific projects Beneficiaries Value to society

This is a platform by IBM where registered users can access online learning on new technologies.

It also provides job opportunities that match the user experience and skill. https://developer.ibm.com/africa/

Universal to anyone with an email address and can access internet

1 Expansion and creation of skills to users on emerging technologies.

2 Creation of innovative solutions through mobile apps

3 Provision of learning opportunity and knowledge sharing with students and youth in learning institutions

This is a program aims to equip learners with communication and writing skills, basic conversational skills and digital literacy skills.

The courses will be offered by private sector such as Alison.com and Google

Learners interested on improving their communication skills and enhancing their

1 Improve communication and writing skills in today’s workplace

2 Accelerate business growth through digital marketing and enhanced online presence

3 Help people to develop new skills and take advantage of all the social and economic opportunities that come along with such skills

This offers training on various ICT skills including Windows XP, Office skills and Email Etiquette

Universal to all Creates professional office workers with enhanced communication skills

Online course to provide experience on Networking, TCP/IP and Unix

IT professionals, Web designers and learners interested on IT and networking

Enhanced skills of ICT professionals and knowledge sharing in the field.

Short online courses on programming languages such a Ajax, HTML 5, Java, xhtml and Android

• Individuals with basic knowledge in programming languages and web developers

• Students interested on setting up blogs

1 Improvement on the existing skillsets of

IT professionals on the programming languages

2 Creation of employment through creation of blogs that facilitate knowledge sharing and online marketing

Design and Creative SMEs and Enablement SMEs and MSMEs to market

Online course on graphic and Web designing. entrepreneurs Learners with interest on graphic design knowledge their business through the digital network

Online course to enhance skills of learners to implementing marketing strategies

SMEs and business owners 1 Enhanced business growth through effective marketing strategies.

3 Creation of global presence of businesses

The course provides learners with guidance on book keeping and accounting

Learners interested in accounting knowledge

Enhances financial management by startups and entrepreneurs

Ajira Digital offers a range of online job platforms that enable users to access various work accounts These platforms include Niko Job, EVA Virtual Assistant, Tuko Works, Kuhustle, Crowdsource Africa, Cloudfactory, Freelancer, Upwork, iWriter, Peopleperhour, MachineDesign, Cadcrowd, WordPress, Metafilter, and Gigster, as well as Problogger, providing diverse opportunities for remote work.

Public Creation employment as well as enable individuals to own online working accounts hence being sf employed

Studio Mashinani is a project targeting the Youth of Kenya to show case their talents in Performance Art Currently the government has set up four studios 8

Youth Provision of opportunity and platform for the youth to showcase and nature their talents.

Y254 is an online channel dedicated to delivering entertainment content specifically aimed at Kenya's youth It also promotes original music and entertainment produced by young Kenyans in collaboration with KBC through Studio.

Youth 1 Facilitation of promotion of local music and entertainment content.

2 Marketing of startup artists and enhances their skill and experience in the sector

7 https://ajiradigital.go.ke/guides

8 https://ajiradigital.go.ke/support_centers

The government is establishing innovative hubs in 20 constituencies, equipped with internet access and digital devices, to empower youth with the tools needed to develop and market their creative ideas online for income generation This initiative aims to transform the country into an information society and prepare citizens for a thriving digital economy, with plans to expand these hubs to all 210 constituencies.

Public The hub enables the public to access online jobs and allow them obtain agribusiness and micro finance information

9 https://ajiradigital.go.ke/support_centers

B ROADBAND D EVICES 49

Broadband provides internet access through various portable devices like smartphones, PCs, and tablets, as well as specialized devices such as police terminals and IoT gadgets like smart TVs and wearables When selecting the most cost-effective and suitable device for specific purposes, it's crucial to consider the total cost of ownership (TCO), which includes repair, maintenance, power supply, and lifespan Accessing online content and essential services in sectors like agriculture and health is vital for enhancing citizens' lives, aligning with the government's Big Four strategy, and necessitates the use of individually owned, shared, or public access devices.

In 2010, Kenya's broadband penetration rate stood at just 2 subscriptions per 100 people, indicating a need for significant advancement in broadband adoption While government usage of devices has risen in public offices and schools through the Digital Literacy Program (DLP), the availability of quality low-end devices remains a challenge, and health facilities and police services are still lacking adequate devices Furthermore, initiatives to boost local device manufacturing have not achieved the desired success.

Understanding the potential physical and psychological negative effects of device usage, particularly on children, is crucial Additionally, it is essential to explore effective management strategies for electronic waste, given the increasing prevalence of these devices.

Table 4: Gaps and Opportunities for Broadband Devices

Affordability 40% of subscribers do not have smart phones Reduce costs, provide incentives to enable service retailers provide payment by installment

Access There are currently 64 libraries and 11 CIH that provide access points nationwide

Leverage NOFBI to establish Wi-Fi points; and expand public access points with high- speed broadband

17000 primary schools have received tablets; 1,000 secondary schools have devices

Only 8,000 modern devices for police, most still using old devices if any and few in police

Provide devices for secondary schools and increase devices at primary schools; Provide devices for health facilities;

Provide devices in police stations and for police officers stations Few devices in public health facilities.

Adoption Limited use of local content and still low uptake of devices in rural areas; no awareness off health impacts of devices

Provide training and awareness on benefits and uses of broadband; understand health impacts of devices

E-Waste Only one recycling center in

Kenya which mostly exports for overseas recycling

Establish local recycling facilities in PPP; Provide incentives for take-back of devices

Counterfeit Large number of counterfeit devices in the market

Use rebates to reimburse legitimate devices; establish certifications for retailers; expand phone testing Local

Local assembly of DLP but no manufacturing or ICT supply chain

Develop feasibility study to attract contract manufacturers

The current market features a limited number of IoT and customized devices, which are essential for promoting the adoption of IoT technology These devices not only support the development of local IoT solutions but also cater to the unique needs of specific user groups, enhancing their overall experience and functionality.

The goal of this initiative is to ensure that every citizen can afford a broadband device to support various socio-economic activities, including education, financial services, healthcare access, e-commerce, and entertainment This article summarizes the current landscape of broadband device availability, the institutions involved, key performance indicators (KPIs), necessary policies, and proposed programs aimed at making these devices accessible to all.

Figure 10: Status on Broadband Devices

• To promote access to a broadband enabled device by all citizens in order to access e-government services.

To enhance the efficiency of the public sector, it is essential to provide access to devices in government offices, educational institutions, and healthcare facilities, as well as support remote work in areas like public security.

• To establish a local industry for device manufacture, maintenance and recycling, which will create jobs and address e-waste issues.

• To ensure availability of standards based devices in the market.

Table 5: Broadband Devices Initiatives and Outcomes

Zero-rate smartphone sales to increase affordability Increased ownership of devices

Establish partnerships with vendors, operators and financial institutions for bulk purchasing and low- interest loans (e.g SACCOs) and purchase contracts for devices (including government employees)

Access Increase number of devices in libraries (and increase broadband speed and reliability) Increased access to broadband

Establish Public Access Points with devices at Sub-

County offices Increased access to broadband

Establish Public Access Points with devices at constituencies, utilizing educational, health, post office facilities

To enhance educational outcomes, the government should ensure that every educational facility is equipped with devices, allowing each student to utilize a device at least once a week, preferably with keyboards for secondary education and above Additionally, it is essential for every teacher to have access to a device, facilitating effective teaching and learning processes.

Use of Broadband to improve education

Provide devices for health facilities and every community health volunteer

Use of broadband to improve health

Provide devices in police stations and for police officers (number of devices per police station to be determined during the action planning (e.g , 1 per officer)

Use of broadband to improve safety

The Adoption USF, along with various counties and agencies, is dedicated to promoting training and awareness initiatives in rural areas and public access points These efforts aim to educate users about the advantages of broadband technology and the effective use of broadband devices and services.

Increase ownership and use of devices

Research health impacts of device usage, especially amongst children (e.g., social skills)

Increase ownership and use of devices

E-Waste Establish local recycling facilities in PPP (with supportive policies to encourage PPP)

Provide incentives for take-back of devices and create a supply chain for value addition from recycling

Use rebates to reimburse legitimate devices Reduced counterfeit devices Establish certifications for retailers Reduced counterfeit devices

Assembly Develop feasibility study to attract contract manufacturers Strategy for local ICT manufacturing

Devices Drive the use of IoT through government procurement and support for innovation Increase in IoT devices

Support local IoT device manufacture or customization in partnership with other companies/Gearbox etc.

Drive the use of customized devices to aid specific groups of users Increase in IoT devices

To effectively implement Public Access Points (PAPs), it is essential to establish a time limit for device usage, introduce a nominal usage fee, and restrict access to specific websites such as e-government, KICD, and Ajira Additionally, PAPs in schools could adopt a membership-based system to enhance security The integration of Internet of Things (IoT) technology for applications like animal tracking and SGR freight tracking is also recommended For a detailed implementation plan regarding expanded devices, refer to Appendix I-6.

P RIVACY AND S ECURITY 52

Broadband networks must prioritize not only accessibility, affordability, reliability, and quality but also security, trustworthiness, and consumer privacy The demand for broadband and online services is significantly influenced by users' perceptions of privacy and security; as confidence in these aspects increases, so does the likelihood of online transactions and broadband adoption Thus, ensuring robust privacy and security measures is essential for driving demand in the broadband market.

Information security and privacy are fundamental to building confidence in online transactions and broadband services To achieve this, the Kenyan Government will promote legislation focused on information security, data protection, and citizens' privacy rights The initiative includes establishing secure and reliable national and regional communication networks through the creation of computer emergency response teams (CERTs) and implementing standards Additionally, the government will enhance cooperation to combat cybercrime and cybersecurity breaches, ensuring the protection of vulnerable members of society.

Security There is prevalence of social engineering attacks, SIM swapping, bank fraud and identity theft leading to inconvenience, and loss

Privacy and data protection Consistent Article 31 of the Constitution a Draft

Bill and policy have been finalized and undergoing stakeholder consultations with data protection commission (MoICT and Senate consulting)

Overall, the citizens and businesses are significantly insecure while online, their privacy is being infringed and private data is not adequately protected

Figure 11: Status on privacy and Security

A summary of gaps, opportunities, strategic objectives and an action-oriented implementation plan with regard to privacy and security as applied to broadband in Kenya follows.

▪ Weak Child Online Protection (COP) legal and regulatory framework

▪ Lack of laws and policies that govern the use of data

▪ Lack of awareness on the best information security practices and data protection procedures

▪ Lack of confidence in the security of online platforms i.e e-government, online markets etc.

▪ Lack of adequate research and development in information security and privacy issues, locally

▪ Broadband cables are considered critical infrastructure and not a utility.

Although Article 31 of the Constitution guarantees the right to privacy, there is currently no data protection law outlining how personal data should be managed by entities that access or handle such information in the course of their business activities.

▪ The European Union General Data Protection Regulations came into force on 25th May 2018 and the Regulations have implications on Kenyan businesses

▪ The citizenry lack adequate skill and knowledge on the best online practices, which as a result exposes them to dangerous actors who use their personal information for criminal purposes.

Innovative regulation of children’s content is essential, as current protections are frequently circumvented Implementing a data protection law that aligns with international standards will ensure the responsible use of data and personal information for children.

▪ To provide civic education and capacity building on safety online and the scope of privacy rights

▪ Set up frameworks to authenticate systems and users

▪ Safeguard the systems further to build confidence.

▪ Encourage more research institutions and centers to engage in online privacy and security research

▪ Have ICT infrastructure declared a utility in the law so as to have punitive measures taken against anyone who vandalizes and/or destroys broadband infrastructure.

In sum, and in working on this strategy, the strategic objectives with regard to privacy and security are as follows:

1 The ratification of the Budapest Convention on Cybercrimes to enhance the country’s international positioning on cybercrime and to address the existing gaps in its cyber-laws

2 Enactment of the cyber-specific laws following rigorous due process including stakeholder involvement

3 Drafting of policy instruments and practical tools such as guidelines that would more precisely define various risk levels as relates to particular information security scenarios

Enhanced collaboration among organizations is essential to leverage their diverse strengths in regulating the complex Internet landscape, ultimately improving the efficiency of cyberspace governance.

5 Further research, capacity building and talent exchange in Internet governance and regulation best practices within the borderless cyberspace

Consistent with the foregoing objectives, an implementation plan comprising expected outcomes, actions, indicators and targets is presented in Appendix I-7

F INANCE AND I NVESTMENT 55

Broadband is becoming a crucial foundation of the digital economy, significantly impacting various aspects of society Recognizing this importance, the Kenyan government is prioritizing broadband in its development agenda to promote digital inclusion for everyone Achieving universal and affordable broadband requires effective collaboration between public and private sector stakeholders in financing and deployment efforts Key focus areas include securing access to low-cost private sector financing, developing effective ICT policies and regulations, creating suitable tax policies, and implementing additional interventions to support necessary investments.

The success of a broadband deployment project depends on two key factors: the investment model and the financing model The investment model evaluates the project's financial viability by analyzing revenue, capital, and operating expenses, providing essential metrics like internal rate of return and net present value Meanwhile, the financing model outlines the strategy for funding the necessary investments for infrastructure rollout Both models are influenced by various contextual variables, including the competitive landscape and the stakeholders involved in the broadband rollout.

To secure funding for the National Broadband Strategy (NBS), it is essential to align it with national priorities, including the Big Four Agenda With a well-defined NBS, funding opportunities can be explored through development partners like the New Partnership for Africa Development (NEPAD) Infrastructure Project Preparation Facility, the World Bank, and the African Development Bank Establishing a clear investment and business model is vital for both the successful deployment of broadband and attracting necessary financial resources This section outlines potential investment and business models, as well as financing strategies that can be implemented for the NBS 2023.

The NBS2023 funding aims to support broadband initiatives through private sector investments, Public Private Partnerships, and the Government's Universal Service Fund (USF) To stimulate private investment, the Government will implement favorable policies, including tax cuts, incentives for infrastructure development, and industry collaboration in sectors like education and healthcare Additional strategies involve tax holidays and reducing costs for deploying fiber networks, emphasizing the importance of reusing and sharing existing infrastructure Innovative financing models and fiber infrastructure sharing will also contribute to expanding broadband access.

Industry collaboration models will encompass partnerships between the Government of Kenya (GOK) and private sector institutions, such as banks and corporations, to enhance fiber connectivity for businesses and homes A notable example is Italy's initiative, where banks are financing a substantial $8 billion broadband rollout Additionally, GOK will collaborate with local entities, especially public corporations like Kenya Pipeline Company, Railways Corporation (SGR), and Kenya Power and Lighting Company (KPLC), to provide shared open infrastructure across counties, rural areas, and national highways.

In this regard the financing options will be a combination public and private sector as follows:-

• National treasury through the USF

(ii) Private sector which will include

Figure 12: Status on Finance and Investment

The strategy highlights critical gaps in broadband financing, including poor coordination of initiatives, inadequate delivery structures for implementation, and a lack of awareness about financing options for small operators like GEMS (Growth Enterprise Management Segment) It also points to suboptimal project prioritization, limited resource sharing to reduce duplication—particularly in fiber cable deployment—and the national government's minimal budget contribution of only 0.5% towards the ICT sector Additionally, county governments exhibit insufficient awareness of how they can effectively support ICT services.

Regional financing opportunities are available from organizations such as the World Bank, the African Development Bank (AfDB), the International Telecommunication Union (ITU), and the African Telecommunication Union (ATU) To leverage these resources, it is essential to develop comprehensive proposals and submit them for consideration to these financiers.

• Improving awareness on the various financing options /instruments To be facilitated by CA, MOICT, Capital Markets Authority (CMA), Central Bank of Kenya (CBK) & financial institutions

• Provision of tax incentives on end user devices

• Tax holiday on new investment in ICT sector

• Security / protection of investment in the ICT sector

To enhance the understanding of ICT services among the Council of Governors and regional county blocs, it is essential to foster engagement that highlights how various counties can collaborate in the deployment and provision of these services, guided by the leadership of the CA.

Attracting investment in broadband is essential for successful deployment, especially given limited resources The investment model chosen significantly impacts outcomes and must align with the area's budgetary and socio-economic context, as well as the ambitions of the public authorities involved Factors such as ageing populations, low education levels, and inadequate ICT skills can hinder the adoption of technology, creating disincentives for potential broadband investors and ultimately slowing down ICT penetration and usage.

Some questions that a public authority 10 (PA) (in this NBS, the Ministry of ICT) will need to answer in the choice of the broadband investment model are:

1 How can we create an engine that ensures future investment in infrastructure beyond the immediate project and funding available?

2 Are there benefits in keeping control and ownership of the passive infrastructure and in defining the deployment priorities?

3 Would we rather keep the ownership of the infrastructure but let an operator define and execute the deployment?

4 What are the pros and cons to involve vertically integrated operators (incumbents and others) to upgrade or expand the network?

5 Do we also see the scope to support local bottom-up citizen initiatives?

6 Given the socio-economic conditions on the ground, which level of competition is required to facilitate penetration of high quality and affordable services?

Four models illustrate various approaches to integrating public and private investment in broadband implementation, ranked by the level of involvement from the Public Authority (PA), such as a broadband council Each model is suited to different situations, taking into account the necessary infrastructure and specific objectives.

PA, and the investment/risk appetite of potential private sector partners

A key decision for a PA is determining the level of commitment and the role to adopt concerning the market, citizens, and businesses This decision should be distinct from the public authority's responsibilities in selecting optimal financial resources.

In summary, the investment models are as follows: a Bottom-up model The bottom-up, or local community, model involves a group of end users organizing themselves into a jointly owned and

10 For the purposes of this NBS, the Public Authority (PA) is the national broadband council (NBC)

The European Union's Regional Policy encourages a democratic approach to broadband investment, often involving local cooperatives to manage their own networks One model is the private design, build, and operate (DBO) model, where the Broadband Authority provides funding to private organizations for network deployment, with public authorities imposing certain obligations In the public outsourcing model, a single contract covers all aspects of network construction and operation, with private entities managing the network while the public sector maintains ownership and oversight A joint venture model features shared ownership between public and private sectors, typically with construction and operations handled by the private sector Alternatively, the public DBO model allows the public sector to fully own and operate the network independently Access to the NEPAD Infrastructure Project Preparation Facility (NEPAD-IPPF) fund is contingent upon the existence of national broadband policies and specific projects.

Several successful investment models have been implemented, including joint ventures involving KPLC, the standard gauge railway (SGR), Pipeline, MoICT, and CA for the provision of National Fibre Additional models encompass Build, Operate, and Transfer (BOT), the development of a National Fibre Company, and leasing arrangements for equipment and accessories, with financing options available through financial institutions or vendors.

The business model outlines the roles and responsibilities of various stakeholders in the broadband value chain, particularly emphasizing the public authority responsible for broadband delivery A broadband network primarily comprises passive infrastructure, such as ducts, cables, masts, and premises, alongside active equipment essential for operation.

Implementing technology involves the integration of transponders, routers, switches, and control and management servers, which serve as the foundation for delivering applications and services These three layers exhibit distinct technical and economic characteristics, as well as varying business roles, contributing to a comprehensive and efficient technological infrastructure.

1 the physical infrastructure provider (PIP), which owns and maintains the passive infrastructure;

2 the network provider (NP) which operates (and typically owns) the active

12 This can be a public organization mandated to oversee the deployment of broadband

I NTEGRATED B ROADBAND P ROJECTS 63 4 ROLES OF STAKEHOLDERS

The NBS aims to implement diverse projects to realize its vision of providing affordable, accessible, and secure broadband for all citizens These initiatives will be executed through collaborative efforts among various stakeholders.

(i) The expansion of the NOFBI for instance will involve collaboration between the Ministry of Transport and Infrastructure, KURA, KERRA, KENHA, KPLC and KETRACO

(ii) County broadband infrastructure will be implemented through partnership between the private sector county governments and Postal Corporation of Kenya (e.g., at the Huduma centres)

Connectivity to schools will be realized through a partnership between the Ministry of Education (MoE), KENET, and the private sector Additionally, improving capacity building and awareness of broadband necessitates a collaborative effort among the MoE, KICD, TVET colleges, universities, and the NBS delivery unit to integrate broadband into the curriculum and implement national awareness campaigns.

The Nairobi Water and Sewerage Company, serving over 250,000 customers, is expanding its services by integrating broadband connectivity into homes This initiative will coincide with the installation of smart meters, enhancing both water management and internet access for residents.

In this regard, an integrated planning of broadband projects will be applied to ensure that all stakeholders provide input which will ensure that the projects are successfully implemented,

M ULTI - STAKEHOLDER A PPROACH TO NBS 2023 I MPLEMENTATION 64

The successful implementation of the NBS Strategy relies on the active participation of various stakeholders, each playing crucial roles Key stakeholder responsibilities are outlined in Appendix II, highlighting their importance in the overall execution of the strategy.

(i) Parliament (The Senate and the National Assembly) to enact necessary legislation necessary fully operationalize the NBS

The Ministry of ICT (MoICT) serves as the custodian of the National Broadband Strategy (NBS) and will oversee its implementation via the National Broadband Committee (NBC) Additionally, MoICT is tasked with reviewing the NBS and establishing the Broadband Delivery Unit (BDU) to ensure effective coordination of NBS delivery.

(iii) Ministry of Infrastructure and the relevant authorities under it - KERRA, KURA,

(iv) The regulator (CA) shall draft and ensure implementation of regulations regarding the NBS

(2) Provide broadband services of acceptable quality and at affordable prices;

(3) Be part of the development of the demand side of the broadband ecosystem;

(2) Demand for acceptable quality of service and pay for it

(vii) Kenya National Education Network (KENET)

KENET, Kenya's National Research and Education Network, is dedicated to delivering high-speed connectivity and cloud services to educational, research, and government institutions, including hospitals Its mission is to enhance education and research through ICT As a specialized operator of a private broadband network, KENET provides essential services such as identity federation, community cloud, and research computing, benefiting researchers, faculty, students, and staff This NREN plays a vital role in the National Innovation System and serves as a key vehicle for the government to expand broadband access in educational and research sectors.

(vii) Kenya Power and Lighting Company

KPLC serves as both a broadband provider and enabler by deploying optical fiber infrastructure over power lines, facilitating access for other broadband service providers Additionally, KPLC supplies electricity to various consumers, which is essential for the operation of these broadband networks It is expected that the Ministry of ICT, Ministry of Energy, and Ministry of Infrastructure will collaborate closely to enhance broadband development The Broadband Development Unit (BDU), under the National Broadband Committee (NBC), will identify areas lacking power supply that require broadband extension, sharing this information with the relevant ministries for coordinated action.

(viii) Kenya Electricity Transmission Company Ltd (KETRACO)

KETRCO is a fully owned company tasked with the planning, design, construction, ownership, operation, and maintenance of high-voltage electricity transmission grids and regional power interconnectors, which are essential for the National Transmission Grid In fulfilling this role, KETRCO aims to integrate fiber optic cables alongside its power lines to extend connectivity to areas not served by the National Optic Fiber Backbone Initiative (NOFBI), thereby utilizing this infrastructure to deliver NOFBI services to underserved regions where feasible.

(ix) Postal and Courier Subsector

Postal services are essential for enhancing access to basic broadband services, reducing costs, and promoting inclusivity By leveraging Information and Communication Technologies (ICTs), these services can improve public service delivery through a comprehensive one-stop-shop model, utilizing the extensive postal infrastructure to help bridge the digital divide.

Post offices play a vital role in rural communities across Sub-Saharan Africa, with approximately 82% of them situated outside the three largest cities in each country This strategic placement ensures that post offices are accessible to the majority of the population, serving not only urban areas but also peri-urban and rural regions They provide essential services that significantly benefit rural populations, enhancing their socio-economic development.

The role that the postal sector plays therefore include the following main areas, among other things:-

(1) Facilitation of communication within the country and with the rest of the world;

(2) Facilitation of trade, through the movement of parcels and other goods within the country and internationally;

(3) Bridging the digital divide, through provision of internet cafes (the Public Access Information Centres, PIACs) and other Information Communication Technologies (ICTs) within the postal network;

(4) Contribution to Education and Literacy, through delivery of learning materials through the postal network and access to online learning through the postal infrastructure; and,

(5) Contribution to GDP, through postal revenues;

Broadband enables efficient and well-managed e-Post services to capitalize on online opportunities, enhancing the delivery of related services such as e-Finance, e-Commerce, e-Government, and e-Learning.

To eliminate any ambiguity, each stakeholder will fulfill their designated roles as outlined in their mandates and licenses, while also collaborating with other participants in the broadband ecosystem to ensure overall success.

R OLE OF THE P RIVATE S ECTOR AND D EVELOPMENT P ARTNERS 66

The private sector will play an important role in the implementation of broadband.

The government aims to foster private investment and competition among broadband service providers by creating essential conditions for national broadband projects The majority of funding will be sourced from the private sector, with specific strategies outlined in NBS 2023 to encourage private sector involvement in broadband investment opportunities.

Collaboration between the public and private sectors is essential for developing networks in underdeveloped regions, focusing on extending broadband access to marginalized and remote areas This partnership aims to prioritize projects that enhance fast internet connections for public institutions located in rural communities.

To promote investment in key NBS 2023 projects, it is essential to encourage local, regional, and international financing agencies such as ITU, IFC, World Bank, and AfDB to participate Engaging these organizations will facilitate the development of integrated broadband projects, driving progress and innovation in the sector.

The World Bank plays a crucial role in enhancing government broadband services through information sharing, benchmarking, and technical assistance, ultimately improving market functionality and stimulating investment By financing strategic infrastructure projects, such as international submarine cables and domestic backbone networks, the World Bank can attract private sector investment and enhance service delivery Notable initiatives like the EASSy cable and the RCIP program exemplify the World Bank's commitment to addressing infrastructure bottlenecks via Public-Private Partnerships Additionally, developing innovative financing options, such as securities and a National Fibre Company, can further engage private sector participation in broadband financing, pooling resources from various investors to foster growth in the telecommunications sector.

The national Treasury will offer tax incentives for devices and accessories to encourage the private sector to supply affordable products in the market This initiative will also encompass tax holidays for infrastructure investments, including last mile connectivity and county broadband infrastructure projects.

Innovative investment arrangements, such as Build, Operate, and Transfer (BOT), can attract private sector investment in Kenyan broadband projects Under this model, investors can fund the infrastructure, operate it for a set period to recoup their investment, and then transfer ownership to the government This approach can facilitate affordable broadband access in public spaces like schools, universities, and hospitals Additionally, leasing models for equipment and devices, where financial institutions or vendors provide technology through affordable installment plans, can further enhance accessibility and promote investment in the sector.

Table 7: Strategic role of key stakeholders in Broadband Value chain

Provide service to include devices as a package devices

“blankets” in towns and cities

(i) Training of customers on new technologies and services

BB awareness programmes across the country

(i) Local communities and private sector have set up business with specific products targeting BB use at local levels e.g., at wards and village level

(ii) Private sector innovative capabilities and production of new services, products and creation of tech companies, including use of modern mobile applications

(iii) Establishment of variety of ICT based services/applications utilizing the BB network to continuously improve the quality of people’s lives. https://www.oecd.org/ict/4d/43631862.pdf )

Counties (i) County governments to offer computer purchase assistance to staff and youth to be able to access broadband

(ii) Counties to establish partnerships with service providers/ equipment provider for affordable BB devices

(i) County BB plans and investment:

County governments must develop and implement strategic plans and targets to effectively execute BB policies for their communities Leading countries in BB initiatives, such as Japan, Sweden, and South Korea, have successfully driven market penetration by setting clear objectives at multiple levels.

(ii) County governments BB projects including e- government, digital-health, and e- learning or distant education in line with broadband infrastructure

Rural broadband expansion should be undertaken by counties through creation of community access networks to distribute services to the communities (liaison with the regulator)

(iv) Each County to establish three (3) community network hubs for rural penetration And in each hub establish Digital Knowledge Center (DKC) and Digital Knowledge Library ( (DKL)

(v) ICT cultural community: Counties should Contribute toward the creation of a sustainable ICT-based cultural community and showcase county’s unique knowledge

The county government should allocate a budget for ongoing sensitization training on best practices at all levels Additionally, it is essential to develop tailored programs that promote internet education and enhance computer usage in both schools and homes.

(iii) Special programs to educate housewives, who tend to control household finances on use and benefits of BB

2 Employment resulting from emergence of new businesses which quickly adopt and diffuse new

3 technologies and infrastructure suitable for their businesses

5 Improved access to education assets.

(iv) Digitisation of operations: Counties aim at digitizing and designing knowledge contents in their counties

(vi) Counties try to facilitate the sharing of digital resources even within counties particularly in the county economic blocks

1 Pooling of resources to acquire BB devices

3 Ensuring safe disposal of obsolete devices

2 Mobilise resources to purchase broadband services

1 Organise at least one community meetings to sensitise members on broadband

2 Share knowledge among community members through for a and meetings

1 BB infrastructure is free from vandalism hence continuity of service

2 Relevant local knowledge is created and commercialized hence generation of income

4 Enhanced access to digital opportunity National

1.Fiscal incentives on importation and/ or manufacture of devices and related accessories 2.BB stimulus package across the BB value chain

3.Enabling policy, legal and regulatory environment (see appropriate chapter)

4.Government subsidization, demand aggregation, and sponsored pilot projects

Government to develop a nationwide fiber-optic company to spearhead expansion of internet access by forming network hubs (47 in No.) in each county HQ by the end of 2022

(extension of NOFBI) The company should promote provision of a combination of broadband wireless technology and/ or wired communication as may be feasible.

The infrastructure be accessed on open access principles by all service providers 19

1 Promote the development of ICT/ BB centres of excellence in the country

2 Train all employees in government on BB services

1 Countrywide access to BB on open access basis

2 Platform for entrepreneurs to deploy BB end user while riding on national BB infrastructure

To stimulate demand for new services, it is essential to reach a critical mass that enables service providers to lower costs to levels that the mass market can support This can be achieved by promoting online access, developing ICT-intensive smart communities, and creating incentives for service creation.

The Korean and Swedish governments exemplify effective models in advancing biotechnology The Korean government actively promotes the growth of biotechnology by fostering a free market environment, which encourages innovation and development in this sector.

(iii) Knowledge sharing: The national

The government should establish a sustainable knowledge-sharing network in Kenya and across East Africa, focusing on enhanced online applications and robust cybersecurity This initiative will promote local content transmission via the Internet, accelerate electronic commerce, and improve the delivery of e-government services.

The national and county governments to sponsor science and technology parks by forging synergies among research centers, educational institutions and technology-based companies 20

Direct underwriting, loans, favorable tax treatment, and other types of financial support for construction of new high capacity backbone digital, broadband networks by the national and county governments;

Affordable and widely available broadband services being used by citizens for ,socio- economic activities/ development

I NCENTIVES TO ENHANCE THE DEVELOPMENT OF BROADBAND 70

The NBS 2023 envisions a number of incentives provided by the GOK to enable BB penetration

To enhance rural connectivity, it is recommended that the national government incentivize communities to adopt broadband services Implementing tax waivers can improve device affordability for citizens Additionally, to foster business growth, tax holidays should be granted for essential infrastructure in rural areas, particularly for critical social services like health and education.

To enhance broadband penetration across the country, counties must receive support for establishing connectivity infrastructure, including ducts and capacity-building initiatives through Wananchi seminars Recognizing that capacity building is crucial for increasing broadband uptake, it is essential to implement educational programs that inform citizens about internet usage Additionally, effective regulatory frameworks should be enforced to monitor service providers A key player in this sector is a state-owned company, similar to the Kenyan Government's investment in Telkom.

Safaricom and other companies have significantly increased broadband penetration in South Korea, positioning the country as a global leader in this sector, surpassing Japan in the rankings South Korea boasts home internet access rates exceeding 100%, showcasing its commitment to advanced digital infrastructure.

88% of the population by 2016 In terms of broadband users in Sweden, in the year 2016, 93% of the population in

Sweden had internet access at home (mobile broadband services with over 100 Mbps speeds), with main dominant provider being a State-owned company

Achieving synergy in research and development requires strategic investments, supportive policies, and targeted leadership programs aimed at financing projects and promoting the commercialization of applied research The National Government plays a crucial role in raising awareness about broadband (BB) uptake Additionally, Internet service providers should be encouraged to educate the public on broadband benefits and collaborate in sharing infrastructure to effectively reach remote areas.

Table 8: Incentive framework for the National Broadband Strategy

1 BB uptake in rural and remote areas

(i) Subsidize cost of devices- and remove tax.

(ii) Subsidize cost of access- to make it affordable

(iii) Progressive tax policies, including investment tax credit further stimulate incentives to invest in ICT infrastructure

1.Users of broadband services 2.Service providers of

BB services in rural areas

1 Increased uptake (No of subscribers and users of BB services) thus eliciting demand

Increased coverage of broadband in rural areas

3 access to current information on economic and social

4 availability of e-enabled services (education, health, agriculture, manufacturing, housing etc)

1 improvement of lives through informed decision making enabled by opportunities and issues

2 Consumption of products never used before and deriving values Increased literacy rates by enrolling for e- learning in rural areas

Healthier rural communities A healthier society by accessing to e- medicine/health services and saving of lives for people who are far away from health facilities

BB value chain National and county governme nts

Direct underwriting, loans, favorable tax treatment, and other types of financial support for construction of new high capacity backbone digital, broadband networks by the national and county governments;

2 Affordable broadband by avoiding duplication of infrastructure

(i) Kenya Revenue Authority (ii) County

2 ownership of devices and use 2.Increase No of subscribers per group of

1 Increase in productivity governme nts lease them under finance lease those at school/college inhabitants

3 Set up of critical infrastruct ure backbone

{ NOFBI } fibre, duct, last mile connectivi ty

(i) Government to guarantee funding for infrastructure investment, (ii) Soft Loan schemes via WB, IFC, ITU, ADB- Govt sign agreement for repayment

(iii) Cost sharing with key stakeholders like all ISPs, or banks

(1) Major network Hubs {in key cities, county HQs etc}

(2) Educational & research centers Business centres, or industrial zones

(3) Upmarket residential areas {where residents work at home}

1 Availability of high capacity BB

2 Infrastructure sharing hence reduction of costs

2 Emergence of businesses and increased employment

National and County governme nts

(i) Educational programmes, free (ii) Sensitization on benefits of BB to citizens

1.Workforce Youth and unemployed 2.University /College students

1 Good intelligence and national safety

2 Greater use of technology for productive purposes ICT applicatio ns/ services

National and County governme nts

Supporting electronic government, education, e- commerce, healthcare and other types of ICT-enabled services.

All citizens Affordable BB services implemented in all socio- economic sectors

Higher access to education/ learning,

A healthier nation, Economically empowered communities for more Kenyans through BB innovations/ use

1 Use of regulatory change to promote facilities-based and resale competition through incremental deregulation of the sector, liberalization of rules affecting incumbent carriers

2 Mandating cost- based and compulsory access to the incumbent carrier’s switches and transmission capacity at fair and compensatory rates

2 Reduced cost of BB deployment

3 Increased competition Improved quality of service

1.Increased number of citizens accessing employment and business opportunities that are enabled by BB services

2 Citizens are are productively using BB in all sectors of socio- economic development

To address the weaknesses identified in the implementation of the National Broadband Strategy (NBS) 2013-2017, a structured approach is recommended to enhance decision-making, project execution, and the maintenance and evaluation of broadband systems The review of NBS I highlighted a lack of synergy and collaboration among broadband implementing agencies, underscoring the need for a well-coordinated implementation framework This framework aims to ensure effective strategy execution through established coordination mechanisms, which are essential for achieving successful outcomes.

(i) For provision of critical services such as power/electricity to schools, libraries, clinics, etc as well as the supply of ICT equipment to other facilities;

(ii) To ensure that the deployment of NBS is aligned with the implementation of e-government and other government priorities/initiatives that require broadband; and

(iii)To ensure that all aspects (supply side and demand side) of broadband are considered in the framework of integrated broadband projects

To be able to accomplish this mandate, a National Broadband Council (NBC) will be formed through either of the following two options:-

1 Administrative council with membership from relevant key institutions e.g., ICTA, CA, V2030 and others 21

2 Statutory body (NBC) established under State Corporation Act or an Act of parliament to govern and deliver broadband

The government's strategy aims to enhance broadband accessibility and usage among a broad subscriber base by encouraging service providers to promote open access This initiative is anticipated to lead to more affordable broadband services.

Option 1 offers a quicker approach, while Option 2, though more time-consuming, presents the most effective long-term solution for broadband governance and delivery across all economic sectors in an open and non-discriminatory manner Once established, Option 2, with the National Broadband Commission (NBC) as a statutory body, is expected to oversee all broadband initiatives under the National Broadband Strategy (NBS) 2023 and beyond, mirroring the successful model implemented in South Africa.

21 Utility providers such KPLC, Ministry of Transport, Infrastructure, Housing and Urban Development, service providers (represented by TESPOK)

23 Broadband Infraco (BBI) SOC is a licensed state owned company in the telecommunications sector.Its aim is to avail capacity to stimulate private sector innovation in telecommunications services and

The structure of the NBC (under Option 1) is presented in Figure 13.

Figure 14: Governance and Delivery Structure

The BDU will oversee the coordination of the broadband strategy under the guidance of the NBC, which is essential for three key reasons.

(i) For provision of critical services such as power/electricity to schools, libraries, clinics, broader offices etc as well as the supply of IT equipment to other facilities

(ii) To ensure that the deployment of NBS is aligned with the implementation of e-government and other government priorities/initiatives that require broadband

(iii)To ensure that all aspects (supply side and demand side) of broadband are considered

Under this governance and delivery structure, the typical functions of the MoICT will include:

(i) Coordination of broadband requirements of all government ministries/departments;

(ii) Reporting NBS activities, progress, and challenges to the Government;

(iii) Seeking funding, directly from Government, funding institutions and private sector;

Negotiating and finalizing contracts with service providers and various institutions on behalf of the Government is essential, as is ensuring that other government ministries or institutions fulfill this responsibility when necessary.

(v) Assisting the National Broadband Council (NBC) with whatever assistance they may require from government; and

Broadband Infraco offers essential secretarial services to support NBC's content offerings, ensuring efficient management and organization The company specializes in delivering long-distance national and international connectivity to licensed private sector partners, as well as to license-exempt projects of national significance and underserved regions.

The functions of the NBC are primarily to elaborate and ensure delivery of projects under the NBS 2023; the composition, and mandate of the NBC are elaborated in Part 5.2

To implement the National Broadband Strategy (NBS) 2023, a multi-stakeholder National Broadband Council (NBC) will be established within one month of strategy approval, led by the Cabinet Secretary for ICT and including representatives from various government ministries, ICT regulators, and key stakeholders from both public and private sectors The NBC will determine its operational mode during its inaugural meeting and will form task teams to oversee and report quarterly on broadband strategy initiatives Members will serve a renewable three-year term, with the long-term goal of creating a statutory body for broadband delivery.

A Broadband Delivery Unit (BDU) is set to be established at the NCS within two months of the NBS 2023 approval to oversee the implementation of all programs and projects under the NBS This unit will be staffed by experts in the NBS thematic areas, either through secondment or direct recruitment, ensuring efficient monitoring, tracking, and reporting of project delivery across all thematic program areas.

Typical roles 24 of a broadband Coordination Committee and working groups are presented in Box xx and Box yy, respectively.

• Establish key principles and objectives

Box yy Working Group (Thematic Task Team) Roles and Activities

• Key issues, questions for all Working Groups:

24 Adapted from David N Townsend (2014 August).

25 David N Townsend (2014 August) Broadband Strategy development Overview and Framework Proceedings of Universalizing Broadband in SADC workshop Lilongwe, Malawi August 2014

• Define and appoint Working Groups

• Oversee and advise Working Group deliberations

• Host Public Forum and Consultations

• Develop a consensus agreement on harmonizing strategy inputs

• Oversee creation of Action Plans to define implementation steps

• Collaborate on establishing a follow- up regime investments, market, policies

– Trends: How has broadband been advancing in this area?

– Needs: Most critical gaps or needs to accelerate broadband

– Constraints: What inhibits broadband development?

– Stakeholders: Who can take responsibility?

– Linkages: Key areas of interdependence and cooperation

– Economics: Costs, demand, economic impacts

5.4 Budget for National Broadband Council

The proposed compensation for the NBC includes monthly honoraria for Council members, based on Option 1 (Administrative Council) of the NBC formation Members will receive KES 50,000 per meeting, drawn from the USF, with meetings scheduled quarterly for NBS 2023 business.

The Internet Society's Global Internet Report 2014 highlights that the "Internet ecosystem" involves diverse stakeholders and operates on principles of openness, transparency, and collaboration To successfully achieve Kenya's broadband vision, it is essential to maintain a spirit of collaboration, public participation, and interdisciplinary engagement among all involved parties.

5.6.1 Monitoring and Evaluation of Broadband Plan

Key to executing this strategy is assessing whether stakeholders are following the planned activities and ensuring that each project within the strategic pillars is progressing as intended This involves identifying challenges faced during the implementation phase and proposing effective solutions to address them.

26 To be agreed (TBA), a figure of KES 50,000