BPO /ITES
Kenya is ready for ICT Business
Kenya’s ICT industry is growing at a promising rate. This is a direct result of the positive changes being experienced in the business environment following the decisive steps taken by the government in 2004 and still continuing. The country is witnessing tremendous growth across the board led by key sectors identified as having the greatest potential for economic growth. These sectors include ICT and outsourcing in particular, tourism, agribusiness, wholesale and retail trade, manufacturing and financial services. Out of the 6 sectors, 20 flagship projects have been named including BPO.
Government Commitment
Kenya’s economic turning point was the formation of the National Economic and Social Council (NESC) in 2004 through a gazette notice No. 7699 of September 24th 2006. NESC is a standing committee mandated to provide expert advice to H.E. the President and the Cabinet with policy issues and recommendations for economic and social matters. Its formation marked a complete turnaround in the interpretation of the value of ICT by the political elite. Kenya is indeed shooting for 10% or higher in economic by 2012. The ICT sector is expected to play a crucial role in achieving this growth.
The government appreciates the need to address both the supply side of ICT driven business as well as the demand side. Currently Kenya depends only source of internet is satellite technology which is expensive and hinders ICT business and consumption. To this end the government indentify 2 key areas that are critical to ICT business namely supply side (infrastructure and enabling environment) and demand (lack of capacity to consume ICT among Kenyans)
ICT Infrastructure
The government has invested in the development of an enabling environment with modern communication infrastructure. The completion of the optical undersea fibre cable dubbed TEAMS in 2009 to connect Kenya to the rest of the world through Mombasa will address the most critical infrastructural requirement for the development of ICT Business. This project is running concurrently with a national back born and terrestrial cable laying project to address the last mile and connect and open up rural Kenya to ICT Business.
Why outsource to Kenya?
Outsourcing is underscored in Vision 2030 as a key pillar and driver of social and economic improvement through job and wealth creation.
Kenya boasts of a well educated English speaking population with high literacy levels.
Kenya is quickly becoming a talent rich country due to the strong basic education system strengthened by free primary education, subsidised secondary education and college grants.
Kenya’s competitiveness is boosted by enviable geographical positioning in relation to the rest of Africa to make the country the Heart of Africa. Our geographical location comes with
Favourable time zones (GMT +3)
An optimum weather often said to be the best in the world and hence the best for business and pleasure
Airline Hub and gateway to Africa’s mainland. Kenya Airways offers an efficient and comprehensive airline service and connection network to the rest of Africa and Europe and America.
Investing in ICT in Kenya
Kenya provides investment opportunities in the ICT sector targeting both local and export markets. As a regional hub and a financial capital of the East and Central Africa region, Kenya’s Competitive advantage as an ICT investment destination is supported by various investor friendly factors that include:
Regulatory framework
Communications Commission of Kenya (CCK) - the regulatory body provides an investor with a one-stop shop for registration, licensing and facilitation -. -
Availability of a well-trained labour force
Kenya has a well-educated English speaking labour force with skilled personnel trained in ICT and related fields.
Kenya’s relation with the global information infrastructure
Kenya is an active member of the International Telecommunications Union, ITU and other international conventions and standards
Diversified experience
Kenyans are involved in diverse areas of ICT and the extensiveness of industry players demonstrates this. Local market availability:
There are currently more than 13 million subscribers in the country and only 3 operators. On commission the government is building a national fibre network covering all districts, as well as an undersea cable - TEAMS
Access to the regional market
Kenya’s membership in regional trading bodies such as COMESA, AU , EAC and provides potential investors with a large potential market
Investor friendly arrangements
The Kenya government can guarantee investor friendly arrangements including:-
The Export Processing Zones (EPZ) program which offers attractive incentives to export -oriented investors
The Investment Promotion Centre (IPC) to promote all other investment in Kenya
The Tax Remission for Export Office (TREO), a program for intermittent imports for export production
Double taxation, bilateral investment trade agreements
The liberalization policy allowing for sector participation in the ICT sector
Reduced taxes on computer hardware software
Removal of licensing requirements on information and broadcasting services
Investment insurance
This provides potential investors with insurance for their investment in Kenya against a wide range of non-commercial risks.
Strategic location
Located on the East African coast and having the port of Mombasa, Kenya is strategically located for investors wanting to access the East and Central African market.
Good quality of life
Kenya hosts a number of international organizations and foreign embassies and provides very good and up to standard living conditions
Stable political climate
Kenya has been one of the most stable countries in Africa since independence. This is also manifested in the number of international and regional organizations headquartered in Nairobi including the UN, IGAD etc.
Investment opportunities
ICT Research and Development
Investment into the East Africa submarine (EASY) cable
ICT training for growing market
Telecommunication to rural areas not yet reached by the telecommunication network such as provision of internet facilities
Provision of fixed telephone services as the Second National Operator (SNO) - TKL monopoly expired in July 2004.
Visit these websites for more information:
http://www.epckenya.org
http://www.information.go.ke
http://www.epzakenya.com
http://www.kenyatourism.org
