E-READINESS QUESTIONNAIRE FOR NORTH ... - Kunnat.net

5.3 Economy
5.4 ICT Landscape
Other population indicators include:
� Urban population: 22% of total population (2008)
� Rate of urbanization: 4% annual rate of change (2005-10 est.)
� Ethnic Groups: Kikuyu 22%, Luhya 14%, Luo 13%, Kalenjin 12%, Kamba 11%,
Kisii 6%, Meru 6%, other African 15%, non-African (Asian, European, and Arab)
1%
� Religions: Protestant 45%, Roman Catholic 33%, Muslim 10%, indigenous beliefs
10%, other 2%
note: a large majority of Kenyans are Christian, but estimates for the percentage of
the population that adheres to Islam or indigenous beliefs vary widely
� Languages: English (offi cial), Kiswahili (offi cial), numerous indigenous languages
Literacy: defi nition: age 15 and over can read and write
total population: 85.1%
male: 90.6% female: 79.7% (2003 est.) 61
The country has a market-based economy with a liberalized foreign trade policy.
Though Kenya is the regional hub for trade and fi nance in East Africa, growth has
been slowed by by reliance upon several primary goods whose prices have remained
low. Agriculture is the dominant economic sector with over 80% of the population
dependent on it for their livelihoods. Agriculture contributes over one third of the
Gross Domestic Product (GDP). Agricultural crops include tea, coffee, horticultural
products, pyrethrum, pineapples, sisal, tobacco and cotton. Food crops for domestic
consumption include maize, beans, cane sugar, wheat, rice, bananas, cassava, potatoes,
sorghum, millet, etc. There is also small scale livestock farming. Tourism is also a big
foreign exchange earner.
Kenya’s GDP has been inconsistent since its independence in 1963. During the
initial years of independence, the country achieved high economic growth of 6%,
which declined to below 4% in the following decades. Infl ation is also a serious concern
for the growth of the Kenyan economy. Since 2004, the infl ation rate has consistently
been above 9%. However, owing to the political instability and budget defi cits, it
reached 26.3% in 2009.
Corruption is the biggest impediment to Kenya’s economic growth. The post-election
violence in 2008 worsened the case. Thus, without the establishment of political
stability, Kenya’s economic growth will remain volatile 62 .
Kenya has witnessed signifi cant growth in the ICT sector as demonstrated by the
number of telephone lines, Internet Service Providers (ISPs), the number of Internet
users, broadcasting stations, and market share of each one of them 63 .
In the National Information and Communications Technology (ICT) Policy released
in January 2006, the Government of Kenya’s vision is to make Kenya ‘A prosperous
ICT-driven society’. Among other things, it recognizes the use of ICT as an
empowerment tool and its role in social, cultural, and environmental issues, poverty
eradication, government, and the general welfare of the population.
The telecommunication sector in Kenya is the responsibility the Communication
Commission of Kenya (CCK). Prior to 1998, the Kenya Posts and Telecommunication
Corporation (KPTC) was the sole provider of basic telecommunications services. In
1998, a modern regulatory regime was established by the Kenya Telecommunications
61 http://www.indexmundi.com/kenya/demographics_profi le.html
62 http://www.economywatch.com/world_economy/kenya
63 http://www.infobridge.org/asp/documents/2651.pdf
Strenghtening e-Governance in the North-South Local Government Co-operation Programme 45