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Businesses in Kenya to increase cloud spending by over 50% in 2021


Enterprises in Kenya are set to increase their expenditure on cloud computing services by 68 per cent in 2021 up from 38 per cent in 2020. This is according to the “Africa in the Cloud 2020” study by World Wide Worx conducted among eight African countries.

The study notes that there has been an increased spend on cloud services. The big shift in spending is accredited to an increase in hyper-scale data centres within the continent. Kenya for instance increased its cloud spend by 38 per cent with South Africa leading with an 82 per cent increase in cloud uptake.

“Businesses that had digitally transformed their operations recorded a 71 per cent increase in productivity, compared to their counterparts who had not done so and only achieved 21 per cent increase in productivity,” stated Arthur Goldstruck, a media analyst and commentator on ICT, mobile communications and technologies.

The Banking and Manufacturing sectors, recorded the highest spend on cloud services adoption with 53 per cent and 46 per cent respectively. Mr. Goldstruck added that going by the data from the study, it is evident that digital transformation in Africa is on the rise and organizations’ priority on cloud spend, is proof of it.

63% of the companies interviewed in the study indicated their top reasons for cloud adoption as driving business efficiency followed by operational flexibility and customer service which averaged at 53 per cent and 45 per cent respectively.

Additionally, Artificial Intelligence, Internet of things and Big Data were noted as other business trends of priority to organizations in various sectors in the next three years. Their significance, ranked 80 per cent and above in the majority of the countries in the study. The key industry sectors keen on adopting the tech trends highlighted were Manufacturing, Insurance and Financial Services, Information Technology, Non-Governmental and Non-Profit Organizations and Banking.

“Digital awakening is no longer a choice but a necessity for the new future,” added Mr. Goldstruck.

Speaking during the session, Ms. Deirdre Fryer, Head of Solutions Engineering- SYSPRO Africa indicated that creating competitive advantage, creating new business models and improving customer experience are the 3 focus areas businesses should take into consideration when determining what they want to achieve from their digital transformation journey.  “We have seen a substantial digital awakening in Africa and if businesses adopt digital transformation in the mentioned focus areas, they are bound to greatly benefit and remain competitive in their respective sectors, stated Ms. Fryer.

Organizations such as Mission for Essential Drugs and Supplies (MEDS) and Synresins, whose CEOs Jane Masiga and Mira Shah were present at the meeting, use SYSPRO’s ERP solution and other cloud business solutions to automate the majority of their operations, ranging from supply chain management to customer care. They both indicated that despite the perceived high cost of digitization, the cost benefits outweigh the initial cost of adoption.

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Nixon Kanali

Tech journalist based in Nairobi. I write about tech, business and African startups. Founder and Editor For TechTrendsKE. Nixon is also the East African tech editor for Africa Business Communities. Send tips to nkanali@techtrendske.co.ke.

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