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#Budget2023KE: Government allocates Ksh 15.1 billion to fund the ICT sector


The government has allocated Ksh.15.1 billion for the Information Communication Technology (ICT) sector in the 2023/2024 budget.

The funds will be used to support the government’s Digital Superhighway strategic initiative which falls under the Kenya National Digital Masterplan – 2022-2032. Under this plan, the government aims to invest massively in ICT infrastructure to the tune of 100,000 kms of fibre-optic cable as well as 25,000 free Wi-Fi hotspots in public spaces.

So far about, 1,650 key public institutions and offices have been connected. In Nairobi, the ICT Authority has implemented the Government Core Central Network intended to serve as a shared and secure service that seeks to improve the exchange of information across Government institutions. The ICT Authority also has plans to install 25,000 internet hotspots in business centers, rural areas, and other public spaces.  

Treasury Cabinet Secretary Prof Njuguna while delivering his first budget in the Kenya Kwanza government, said the digital superhighway will help the government in achieving its objectives of bottom-up transformation agenda as well as enhance revenue collection via automation of VAT systems. 

‘’Digitization and automation will increase productivity and competitiveness through providing access to the market and reducing information asymmetry as well as improving risk management’’ he said. 

The proposed allocation includes Ksh.600 million for the government-shared services to fast-track the development of the Konza Technopolis City, Ksh.4.8 billion for the horizontal infrastructure phase 1, and Ksh.1.2 billion for Konza Data Center and smart city facilities. 

Other include Ksh.475 million for the construction of Konza complex phase 1B, Ksh. 5.7 billion for the construction of Kenya Advanced Institute of Science and Technology at Konza and Ksh.1.3 billion for the maintenance and rehabilitation of the national fibre optic backbone phase 2, expansion cable and Ksh. 583 million for the maintenance and rehabilitation of the last mile county connectivity network. 

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Nixon Kanali

Tech journalist based in Nairobi. I track and report on tech and African startups. Founder and Editor of TechTrends Media. Nixon is also the East African tech editor for Africa Business Communities. Send tips to nkanali@techtrendske.co.ke.

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