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UNCLAS NAIROBI 003952 
 
SIPDIS 
 
DEPT FOR AF/E, AF/EPS 
DEPT FOR EB/CIP/BA N FETCHKO 
 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: ECPS EINT EAID PHUM KE
SUBJECT: Information Requested For Secretary's Initiative On Global 
Internet Freedom (GIFT) 
 
REF: STATE 142147 
 
¶1. The GOK generally recognizes the role of information 
Communication and Technology (ICT) in national development and the 
need for a national policy that promotes and facilitates private 
sector investment for the benefit of all Kenyans.  The Kenya 
Communications Act (KCA) 1998 and the GOK's subsequent policy 
guidelines have liberalized the ICT market, promoted private sector 
investment, and call for expansion of communication services to all 
parts of the country.  The ICT sector has grown quickly following 
liberalization, but Kenya is still working to develop a policy and 
strategy to spread access to ICT and postal services to rural areas. 
 USAID has funded projects with ICT components or focus in the 
education, health, natural resource management, and e-government. 
 
ICT Liberalization Expands Internet Penetration 
--------------------------------------------- --- 
 
¶2. Until recently, the state monopoly Kenya Posts and 
Telecommunications Corporation's (KP&TC) inhibited development of 
the ICT sector through poor service and high prices.  The GOK began 
the liberalization process in 1998 with the KCA and Postal 
Corporation Acts, which split the KP&TC into three separate entities 
on July 1 1999: Telkom Kenya (TKL), the Postal Corporation of Kenya 
(PCK), and the Communication Commission of Kenya (CCK).  In December 
2001, the government issued Policy Guidelines outlining the overall 
government's objective for the ICT sector as being, "To optimize its 
contribution to the development of the Kenyan economy as a whole by 
ensuring the availability of efficient, reliable and affordable 
communication services throughout the country." 
 
¶3. In September 2004, the CCK issued a new licensing framework "To 
ensure that the regulatory environment is friendly to investment and 
conducive to the provision of modern communication services."  Most 
critically, the framework allowed the licensing of additional 
Internet backbone and gateway operators, broadcasting signal 
distributors, and commercial VSAT operators, and allowed them to 
carry any form of multimedia traffic, for example, VoIP. 
 
¶4. The ICT private sector has grown rapidly since deregulation.  See 
table 1.  As service quality rose and prices fell, more companies 
and individuals signed up and invested in ICT, to the point where it 
now plays a significant role in Kenyan society and economy.  The 
private sector ICT workforce has doubled or tripled since 2004.  If 
the East African under sea fiber-optic cable project (EASSy) or an 
alternate cable are implemented along an open access model, and the 
GOK ensures competition for carriers from the landing point in 
Mombasa, connectivity prices would drop and Kenya's services sector 
could blossom with call centers and other providers taking advantage 
of the educated, English-speaking workforce. 
 
Still Limited ICT Access For Most Kenyans 
---------------------------------------- 
 
¶5. In Kenya, the penetration of communication services is still 
skewed towards urban areas, especially provincial capitals.  There 
is thus need to expand availability of basic communication services 
of acceptable quality and at affordable prices to rural people. 
According to a November 2004 study, people traveled on average more 
than 22 kilometers to reach the nearest Internet provider, with some 
traveling 141 kilometers.  Most people accessed the internet via 
cyber cafes (65%), followed by friends (16%), work place (14%) and 
post office (6%).  In 2006, the Ministry of Communications estimated 
1.5 million Kenyans use the internet. 
 
Table 1 
                                2002  2003  2004  2005 
--------------------------------------------- --------- 
Vendors and contractors 
(No. employed)                   783   813   888   912 
Technical personnel 
(No. employed)                   108   139   182   215 
Cyber cafes/telephone bureau      --    51    70    90 
Internet service providers        72    76    78    72 
Commercial VSAT Hub operators      1     2     2     6 
Internet backbone and gateway 
Operators                          1     1     1     6 
Local loop operators               --    2     4    13 
 
 
USAID IT Projects 
------------------ 
 
¶6. USAID Projects in Kenya with ITC components or focus are as 
follows. 
 
Natural Resource Management 
----------------------------- 
Project Name: none 
 
 
Overview: USAID is supporting the Kenya Wildlife Service to improve 
its management. 
Recipient: Kenya Wildlife Service 
 
IT-related support: 
(1) Implement a "Smartcard" system to strengthen revenue collection 
and management of revenues 
(2) Develop an integrated management information system 
(3) Establish an asset register system 
 
Funding: 
FY 2006: $35,000; 
FY 2007: $435,000; 
FY 2008: $150,000 
 
 
Education 
---------- 
 
¶A. Project Name: ICT in education options paper 
 
Overview: Research and preparation of a report on how to integrate 
ICT in education for the government of Kenya. 
 
Recipient: Ministry of Education & Ministry of Science and 
Technology 
 
IT Component: USAID fully funded a team of American and Kenyan 
contract consultants that developed an ICT in education options 
paper.  Project completed. 
 
FY 05 Funding: U.S. $176,000.00 
 
¶B. Project Name: Mindset Kenya Project 
 
Overview: Project proposal to support the integration of ICT in 
education by digitizing education curricula content in the 22 
Primary Schools Teacher Training Colleges. 
 
Recipient: Ministry of Education & Ministry of Science and 
Technology 
 
IT Component: Supply of computers and the peripherals devices, 
computer based multi media, DVD Players, DVDs, TVs. Installation of 
Local Area Networks and rehabilitation of computer laboratories. 
 
FY 06 Funding: U.S. $250,000.00 
Funding from Mindset South Africa $600,000 
 
 
¶C. Project Name: none 
 
Overview: USAID is supporting the training of primary school 
teachers across Kenya. 
Recipient: Ministry of Education 
 
IT-related support: 
(1) Locally developed education content translated into 
computer-based multi-media platforms 
(2) Development of a teacher training program that integrates ICT as 
a mode of training and a method of classroom instruction 
 
Funding: 
FY 2006: $250,000 
Five-year projected funding: $1,000,000 
 
 
Health 
-------- 
¶A. Project Name: none 
 
Overview: USAID is building assisting the Kenya Ministry of Health 
(MOH), Division of Reproductive Health, to establish a resource 
center to manage research. 
Recipient: Ministry of Health 
 
IT-related support: Provision of computers and technical assistance 
to create a web site that will allow MOH staff and medical students 
to access health information 
 
Funding: FY 2005 $50,000 
 
¶B. Project Name: none 
 
Overview: USAID is assisting the Kenya Ministry of Planning, 
National Coordinating Agency for Population and Development (NCAPD) 
to disseminate population and development data. 
Recipient: Ministry of Planning 
 
 
IT-related support: Provision of computers and technical assistance 
to create a web site that will allow NCAPD staff to access and 
disseminate Kenyan data via the internet 
 
Funding: FY 2005: $50,000 
 
¶C. Project Name: Wide Area Information Sharing System for 
REDSO/ESA/PHN Partners in Kenya, Tanzania and Uganda. 
 
Overview: To promote increased sharing of regional analytical 
information among USAID/EA's regional health partners. 
 
Recipient: PHN Partners Center for African family Studies (CAFS) in 
Kenya, Regional Center for the Quality of Health Care (RCQHC) in 
Uganda, and Commonwealth Regional Health Community for Eastern and 
Southern Africa (CRHCS) in Tanzania. 
 
IT Component: Provision of upgraded bandwidth, access to information 
resources, health information databases, software and ICT services, 
development of web enabled applications and tools. 
 
FY 02/03 Funding: U.S. $100,000.00 
 
 
Agriculture 
------------ 
¶A. Project Name: none 
 
Overview: USAID is working to improve productivity in the dairy 
sector and consumption of diary products. 
Recipient: Land o Lakes, ABS TCM Ltd, World Wide Sires, ILRI 
 
IT-related support: 
1) Feed formulation software packages for improved production 
(2) Automation of farmers' cooperatives to improve efficiency 
(3) A market information system 
(4) A "Dairy Toolbox" that is a single virtual location with 
downloadable information and resource for smallholder dairy farmers 
 
Funding: 
FY 2005: $150,000 
FY 2006: $250,000 
 
¶B. Project Name: none 
 
Overview: The USAID-supported Kenya Horticulture Development Program 
is working to increase the production and trade of non-traditional 
horticulture products. 
Recipient: Fintrac Inc 
 
IT-related support: 
(1) KHDP website established to disseminate information 
(2) use of CIRIS monitoring and evaluation software to track field 
activity 
 
Funding: 
FY 2005: $30,000 
FY 2006: $40,000 
 
¶C. Project Name: none 
 
Overview: USAID is working to increase the production of maize 
(corn) and develop new markets. 
Recipient: ACDI/VOCA 
 
IT-related support: 
(1) Provision of a computer-based inventory system that links silo 
and financial systems 
(2) Provision of accounting, database and costing software 
(3) Use of SMS as a way to relay market information 
(4) Market information website 
(5) An interactive voice response system through which farmers are 
able to get information on commodity prices 
(6) Radio to disseminate best practices to farmers 
 
Funding: 
FY 2005: $50,000 
FY 2006: $60,000 
 
 
E-Government and Anticorruption 
-------------------------------- 
¶A. Project Name:  Last Mile Initiative Kenya program 
 
Overview: Aimed at enabling rural communities to use ICT to access 
government and development services, including education, 
socio-economic, agriculture, and civic education. 
 
Recipient: e-government secretariat to the Cabinet 
 
IT Component: Set up a tele-center equipped with networked computers 
and internet connection. 
 
FY 06 Funding: U.S. $100,000.00(USAID/Kenya) 
 
 
¶B. Project Name: Regional Anticorruption 
 
Overview: Support Direct Trader Input (DTI) centers in the region 
 
Recipient: Clearing and Forwarding associations in Kenya, Tanzania, 
Uganda and Rwanda. 
 
IT Component: Provision of computers and non-computer ICT equipment 
to enable clearing and forwarding agents to enter clearing 
information through the DTIs that are located away from the Ports 
and customs offices.  This reduces Clearing Agents/Government 
officials' human interface that has been identified as a major 
source of corruption. 
 
FY 05 Funding: U.S. $200,000.00 
 
 
Conflict Management 
------------------- 
 
¶A. Project Name: Conflict Prevention Mitigation and Response (CPMR) 
 
Overview: Effective Management of Conflicts in the Horn of Africa. 
 
Recipient: Five non-state CPMR actors. 
 
IT Component: Provision of computer and non-computer ICT equipment, 
Internet connection and Website developments to enable the CPMR 
actors to collect, process and disseminate conflict information in 
the Horn of Africa.  Also two Community Learning and Information 
Centers (CLICs) and nine sub-regional offices for one of the 
partners have been supported under this activity.  The CLICs and the 
facilities in the sub-region offices provide unique ICT access 
opportunities for marginalized communities in the region. 
 
FY 02 Funding: U.S $250,000.00 
FY 03 Funding: U.S $168,664.00 
FY 04 Funding: U.S. $ 34,000.00 
FY 06 Funding: U.S. $ 89,000.00 
Total funding: U.S $541,000.00 
 
 
¶B. Project Name: Conflict Management in the Somalia, Kenya, 
Ethiopia, Uganda and Sudan cross-border zones. 
 
Overview: Effective Management of conflicts in these cross-border 
zones. 
 
Recipient: Various CPMR actors and stakeholders operating in the 
cross-border zones. 
 
IT Component: Provision of Integrated Information and communications 
Technologies Networks (IICTN) to support CPMR activities through 
networks and partnerships in the two clusters. 
 
FY 06 Funding: U.S. $ 40,000.00 
FY 07 Funding: U.S. $350,000.00 (proposed) 
 
 
Trade and Economic Development 
------------------------------ 
 
Project Name: East and Central Africa Trade Hub 
 
Project Description: Ratification of the World Trade Organization 
Information and Communication (WTO/IT) Agreement. The IT agreement 
desires to achieve maximum freedom of trade in IT products and to 
encourage continued technological development of the IT industry on 
the worldwide basis. 
 
Recipient: Kenya, Uganda and Tanzania 
 
I.T. Component: The ECA/Hub is helping the EA countries to ratify 
the WTO/IT agreement by providing technical support and, ICT 
equipment and other facilities. 
 
Recipient: Kenya, Uganda and Tanzania 
 
FY 05 & 06 Funding: approximately US$60,000 
 
Regional Projects 
----------------- 
 
¶A. Project Name: Data Exchange Platform for the Horn of Africa - 
DEPHA 
 
Recipient: UN Agencies working in Humanitarian response issues; 
 
ICT component: Provide updated, timely, accurate and ground truthed 
data to humanitarian actors working within the Horn region; and act 
as a data clearing house to any contentious sectors.  Assist 
decision makers by producing various sector and activity specific 
Geographic Information Systems (GIS) products. 
 
FY06 funding: USD$250,000 (approved). 
 
 
¶B. Project Name: Conflict Early Warning early response mechanism. 
 
Overview: Improving Conflict Early Warning and Early Response 
Mechanisms in the region. 
 
Recipient: Inter-governmental Authority on Development (IGAD)'s 
Center for Conflict Early warning and Early Response Network 
(CEWARN) and National CEWARN Coordinating Offices. 
 
IT Component: Provision of computers, Internet access and Website 
development to support IGAD's Conflict Early Warning and Early 
Response mechanisms in IGAD member states. 
 
FY 00 - FY 06 Funding: over $300,000 
 
 
¶C. Project Name: Harmonization of Telecommunications Regulatory 
Framework Project. 
 
Overview: USAID/EA supports COMESA to harmonize ICT policies, 
guidelines and procedures as well as improve regulatory institutions 
in its region in order to create an integrated market that would 
attract investment to the ICT sector, facilitate trade and other 
aspects of development, and promote access to ICT by the rural 
communities. 
 
Recipient: Common Markets for East and Southern Africa (COMESA) 
 
I.T. Component: Provide funds to enable COMESA and its member 
countries to develop model ICT regulation and policies, form an 
Association of Regulators of Information and Communication in 
Eastern Africa (ARICEA) to facilitate adoptions of the model 
regulations and policies by the COMESA member states. 
 
FY 99 to date Funding: US$ 1500,000 
 
 
¶D. Project Name: Regional Agricultural Trade Intelligence Network 
(RATIN) 
 
Overview: RATIN (www.ratin.net), supplies grain traders with online 
trading information, ranging from early warning information to 
market prices and regional trade analysis on maize, beans and rice. 
 
Recipient: Regional Agricultural Trade Expansion Support (RATES) 
Program (Implemented by Chemonics Limited) 
 
I.T. Component: 
 
FY 05 & 06 Funding: over US$2M. 
 
 
¶E. Project Name: The African Regional Commodity Link 
-TradeAfrica.biz and CottonAfrica.biz 
 
Project Description: Trade Africa (www.tradeafrica.biz) website 
promotes maize and beans trade in Africa. The website 
www.cottonafrica.biz promotes the African textile and cotton 
industry by providing an online trading board. 
 
Recipient: Regional Agricultural Trade Expansion Support (RATES) 
Program (Implemented by Chemonics Limited 
 
I.T. Component: provision of computers and website development and, 
establishment of a call center that takes advantage of available 
communication technology to email, SMS, world space, cellular phone, 
facsimile, land-line trade opportunities to regionally based 
traders. 
 
FY 05 Funding: 
FY 06 Funding: 
 
¶F. Project Name: Information Technology Institutional Strengthening 
 
 
Overview: To support COMESA secretariat to enhance communication 
within and with the member states and other stakeholders. 
 
Recipient: Common Markets for East and Southern Africa (COMESA) 
 
I.T. Component: Implementation of Value-Added Services such as 
Vide-conferencing and VOiP, e-applications and necessary 
e-legislations 
 
FY 05 to date Funding: US$400,000 
 
 
¶G. Project Name: IGAD Climate Application and Prediction Center 
ICPAC 
 
Overview: Provide Weather and Early Warning forecasting in weather 
and climatological outlook for the Horn of Africa region on a 3 
months basis to actors in the region; 
 
Recipient: Inter-Governmental Authority on Development (IGAD) 
 
ICT component: Involves use of the land Earth and Geostationary 
Satellite based observation systems and other Hydro-meteorological 
tools to gather and disseminate data in a user-friendly format 
including maps, and statistical charts. 
 
FY 05 funding: 
 
RANNEBERGER