Digital economy blueprint

HON. JOE MUCHERU, EGH

Cabinet Secretary, Ministry of Information, Com-

munications and Technology

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EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

This Blueprint seeks to provide a conceptual frame-

work adopted by Kenya in its quest towards the real-

isation of a successful and sustainable digital econo-

my. It commences with a brief overview of the digital 

economy ecosystem, then proceeds to evaluate some 

of the currently held definition of the digital economy 

by relying on a much broader concept. 

The Blueprint defines the digital economy as “the en-

tirety of sectors that operate using digitally-enabled 

communications and networks leveraging internet, 

mobile and other technologies” irrespective of indus-

try. 

The document proceeds to highlight the importance of 

investing in a digital economy, where some valuable 

statistics are provided on the relative value of global 

investments in mobile services systems mainly with-

in  financial  markets,  e-commerce  platforms,  among 

others. Adoption of the Digital Economy framework 

offers countries like Kenya opportunities to leapfrog 

and join nations in the First World and actively con-

tribute to the global economy. 

The Blueprint identifies the five pillars of the digital 

economy, that are described under the headings, Dig-

ital Government, Digital Business, Infrastructure, In-

novation-Driven Entrepreneurship and Digital Skills 

and Values. 

Each of these five pillars is comprehensively explored, 

complete with illustrative tables. The description of 

the pillars is followed by proposed implementation 

ideas that include, creating a regulatory framework 

for investments and innovations, encouraging smart 

society and networks, strengthening privacy and data 

protection, enabling new business models for micro 

and small enterprises and striving for excellence in 

digital technology research and innovative ecosys-

tems.

Defining  what  constitutes  the  digital  economy  has 

proven problematic, as it is becoming increasingly 

difficult  to  distinguish  between  the  digital  and  cash 

economy as the use of technologies becomes more 

commonplace. 

Economies of most countries are managed and under-

pinned by digital technologies, it would be impossible 

to imagine a modern stock exchange or a central bank 

without computers.  The dominant paradigm of the 

digital economy is the multi-sided platform character-

ized by digitally mediated transactions between glob-

al complementary groups. The complements may be 

buyers and sellers (Masoko by Safaricom), riders and 

drivers (Mondo Ride, Little Cab), content producers 

and subscribers (Waabeh, Mdundo) and myriad other 

complementary groups. The significant value is cap-

tured by the platform owners, more of which we want 

in Africa.

For Kenya, a Digital Economy will therefore be pre-

mised on ubiquitous provision of universal broad-

band access that will drive digitally enabled services 

for a digital people and economy. Universal access 

initiatives have provided enabling infrastructure and 

frameworks to connect every Kenyan and every Gov-

ernment/public facility such as hospitals, schools, po-

lice stations and prisons.