Benefits of Liberalized CRS to Kenya Waudo Siganga The Computer Society of Kenya 11/12/2018 CRS Seminar, Geneva September 28 2005

CRS Seminar, Geneva September 28 2005 Agenda Kenya the country Computer Society of Kenya General ICT Environment Benefits of liberalized CRS Conclusion Q&A 11/12/2018 CRS Seminar, Geneva September 28 2005

CRS Seminar, Geneva September 28 2005 Kenya the Country Size: 580 thousand sq kms. Population: 35 m GDP: US$ 14b GDP Per Capita: US$ 400 Current A/C Balance: US$ -777m Goods & Services Exports Labour Force: 11.8 11/12/2018 CRS Seminar, Geneva September 28 2005

Computer Society of Kenya Established 1986 and represents over 80 major ICT & Related Companies Member WITSA/AFICTA Advocacy activities Fiscal Reform Liberalization National ICT Policy 11/12/2018 CRS Seminar, Geneva September 28 2005

General ICT Environment Fairly liberalized Mobile telephony – 2 players Wire line telephony – monopoly ended Liberalized data communications; Internet backbone and gateway services; VoIP Independent regulator and government ministry Computer duty free but taxes on other services CRS commitments not yet made 11/12/2018 CRS Seminar, Geneva September 28 2005

Pillars for ICT-led Growth Competition Private Sector Investment Predictive yet responsive legislative/regulatory environment Universal access 11/12/2018 CRS Seminar, Geneva September 28 2005

Benefits from CRS (CPC 84) Liberalization Job Creation Attracting FDI Technology Transfer & Capacity Blg Access to the latest technologies Opportunities abroad Maintenance of a competitive edge 11/12/2018 CRS Seminar, Geneva September 28 2005

CRS Seminar, Geneva September 28 2005 Job Creation Current unemployment is over 50% Government has a target of 500,000 new jobs annually CRS is creating an environment for new types of technology centred work Work can be outsourced from developed countries (labour cost comparative advantage) Employees enjoy new forms of training 11/12/2018 CRS Seminar, Geneva September 28 2005

CRS Seminar, Geneva September 28 2005 Job creation Example Canadian Company has partnered with a Kenyan ISP Company, Skyweb Technologies, to set up a call centre in Nairobi, Kenya – shifted from Canada. So far about 25 employed with outlook for 80. Employees received new skills and training Employees earn above average salaries 11/12/2018 CRS Seminar, Geneva September 28 2005

CRS Seminar, Geneva September 28 2005 Attracting FDI Private sector investment is one of the pillars of ICT-led development. A liberalized environment encourages FDI Kenya has become the hub of CRS activity in the region hosting offices for SAP, Cisco, HP, IBM, Oracle 11/12/2018 CRS Seminar, Geneva September 28 2005

CRS Seminar, Geneva September 28 2005 Technology Transfer CRS Companies such as Cisco, SAP, HP and Oracle have been able to set up local training centres where their experts train local Kenyans Kenyans gain from the skills transfer and are able to train others 11/12/2018 CRS Seminar, Geneva September 28 2005

Access to Latest Technology The latest technologies are available in Kenya because experts are able to easily com into the country for installation or training stints, as well as set up shop in partnership with Kenyan firms. Using the latest technology ensures that Kenya stays competitive in the global economic environment. 11/12/2018 CRS Seminar, Geneva September 28 2005

Access to Latest Technologies Tourism and hospitality industries have been able to stay competitive E.g. experts came from India and helped to install and train staff of the Kenya Wildlife Service on a new Smart Card system that has helped control and manage revenue from tourists visiting national parks. 11/12/2018 CRS Seminar, Geneva September 28 2005

Maintaining Market Competitiveness All the major industries in the country are able to apply the latest information technologies in their operations and bring in experts to help install and train staff. One manufacturing company, Bidco Industries has been noted for its usage of technology that has seen it expand its operations in the region. 11/12/2018 CRS Seminar, Geneva September 28 2005

Cross Border Opportunities for Kenyans Kenyan ICT professionals are now to be found in many countries particularly those in the region, such as Botswana, Tanzania, Rwanda and South Africa. It is estimated there are over 1000 ICT experts in those countries, remitting over US$ 10m back to the country annually. 11/12/2018 CRS Seminar, Geneva September 28 2005

CRS Seminar, Geneva September 28 2005 Conclusion There is clear and conclusive evidence that the freeing of CRS markets has benefited Kenyans in a number of aspects. These benefits are however only a small indication of the potential. Kenya has a capacity to benefit much further from areas such as outsourcing. 11/12/2018 CRS Seminar, Geneva September 28 2005

CRS Seminar, Geneva September 28 2005 The End Thank you for your attention I can be reached at: Waudo @signet.co.ke 11/12/2018 CRS Seminar, Geneva September 28 2005