The Kenyan ICT market, valued at $10.57 million in 2025, exhibits robust growth potential, projected to expand at a compound annual growth rate (CAGR) of 5.91% from 2025 to 2033. This growth is fueled by increasing smartphone penetration, rising internet usage, and government initiatives promoting digital transformation across sectors. The BFSI (Banking, Financial Services, and Insurance), IT and Telecom, and government sectors are key drivers, with significant investments in digital infrastructure and services. Growth in e-commerce and mobile money transactions further contributes to market expansion. The market is segmented by type (hardware, software, services, telecommunication services), enterprise size (small and medium enterprises, large enterprises), and industry vertical. While challenges like infrastructure limitations in certain regions and digital literacy gaps exist, the overall market outlook remains positive, driven by a young and increasingly tech-savvy population. The dominance of large enterprises in the market is expected to continue, although SMEs are showing increasing adoption of ICT solutions. Software and services segments are likely to experience faster growth than hardware, reflecting the shift towards cloud-based solutions and digital services. Competition among established players like IBM, Oracle, and Microsoft is intense, but opportunities exist for smaller, specialized firms catering to niche segments. The Kenyan government's focus on expanding broadband access and fostering digital innovation will play a critical role in shaping the market's trajectory over the forecast period. The increasing adoption of artificial intelligence (AI), machine learning (ML) and blockchain technologies across various sectors will further accelerate this growth. The substantial growth in the mobile money sector also indirectly contributes to the overall ICT market expansion. Recent developments include: June 2024: Microsoft Africa Development Center (ADC) and Serianu Limited signed a memorandum of understanding (MOU) aimed at enhancing cybersecurity skills in Kenya. This strategic partnership aims to empower cybersecurity professionals with the essential skills to safeguard digital infrastructures. This initiative aims to engage 100 students across 10 public and private universities, emphasizing key areas such as network security, cloud security, incident response, and Microsoft Defender Threat Intelligence., May 2024: Microsoft Corp. and G42 unveiled an extensive digital investment package in Kenya, collaborating with the Republic of Kenya's Ministry of Information, Communications, and the Digital Economy. G42, in collaboration with Microsoft and other key stakeholders, would command an initial investment of USD 1 billion. This investment would fund the diverse components detailed in the comprehensive package.. Key drivers for this market are: Implementation of 5G is Back on Track, Growing Demand for Cloud Technology. Potential restraints include: Implementation of 5G is Back on Track, Growing Demand for Cloud Technology. Notable trends are: Growing Demand for Cloud Technology.

The growing mobile money sector in Tanzania is dominated by two providers, namely Vodacom’s M-Pesa and Tigo Pesa. By June 2023, the total number of mobile money subscribers in Tanzania exceeded 47.2 million.

Mobile money – How does it work? Registered users can deposit cash in their digital mobile money account, make withdrawals or transfers. These transactions are managed by communication agencies like Vodacom and their licensed agents. To sign up, prospective users must purchase a SIM card from the provider, and while the registration is free, transactions are fee-based. Unlike other forms of mobile/digital payments, mobile money is not linked to bank accounts.

M-Pesa as market leader in Tanzania Against the backdrop of increasing internet access and smartphone usage, the mobile money industry is growing at a rapid pace. After Safaricom launched M-Pesa in Kenya in 2007, it has become Africa’s leading mobile money service. In Tanzania, the provider has dominated the market in recent quarters, accounting for over 106 million mobile money transactions in March 2020. During that month, the overall value of mobile money transactions reached 3.9 billion U.S. dollars in Tanzania.