In a move to spur growth, the government of Kenya has made substantial allocations to the ICT sector in the 2008/2009 budget.
Finance Minister Amos Kimunya has set aside US$14.5 million for a modern BPO (business process outsourcing) park. The park will provide tax incentives to investors, while offering accessible, reliable and affordable ICT services. It will also contribute to the government’s Vision 2030, meant to boost development in key sectors, increase overall economic growth and reduce poverty by 2030.
In a speech regarding the budget, Kimunya said the park will create over 10,000 jobs, earn foreign exchange and offer much needed services.
The budget also provides $4 million for a youth empowerment center to offer entrepreneurial guidance. Kimunya stated there are plans to initiate a project that will enable youth to venture into software development for local use and exporting.
A further $4 million will support small and medium enterprises in the country, and $11 million has been dedicated to the development of The East African Marine System (TEAMS), an undersea fiber optic cable linking the country to the rest of the world.
The government has joined members of the private sector to invest in TEAMS, and the project is expected to be completed by 2009. The fiber optic cable will improve bandwidth quality, reduce telecommunication costs and position the proposed BPO park as an ICT regional service hub, said Kimunya.
To complement activities on the undersea cable, the minister said the government has made progress in implementing a national fiber optic network, which is connecting all towns and cities in a bid to reduce the digital divide between rural and urban areas.
The minister also removed the import duty on telecommunication equipment. The move is expected to encourage telecom companies to invest in modern equipment, enhance expansion, improve network efficiency and reduce the cost of services.
The government similarly removed the import duty on computer printers to potentially increase their usage on the market.
