Kenya to receive Ksh.50.3B World Bank funding to boost digital infrastructure

Kenya is set to receive $390 million (approximately Ksh.50.3 billion) from the World Bank over the next three years to upgrade its digital infrastructure.

The funds will support broadband expansion aimed at attracting new capital into the country’s technology ecosystem.

According to Tim Kelly, Lead Digital Specialist at the World Bank in Nairobi, the financing under the Kenya Digital Economy Acceleration Project will support the adoption of the Open Fibre Data Standard and the development of a secure, shared fibre infrastructure database. 

The $390 million World Bank credit facility to Kenya was approved in March 2023, but has been slow to take off, with only six per cent of the funds disbursed so far. Kelly says the bank intends to release the remaining funds before the 2028 deadline to accelerate the country’s digital infrastructure rollout.

“Here, we are talking about the infrastructure component of the project, which is just over $200 million, and it involves investing around $100 million to create an additional 27,000 kilometres of fibre in the Kenyan backbone network. In addition, we will be committing a further $65 million to last-mile connectivity for Kenya, providing internet access for schools, hospitals and for government services as a whole," Kelly said.

The Communications Authority of Kenya has engaged stakeholders to address challenges hindering the adoption of a shared database for Kenya’s fibre infrastructure, in a bid to close gaps in terrestrial fibre mapping.

Communications Authority Director General David Mugonyi says the adoption of the Open Fibre Data Standard will reduce deployment costs, enhance network resilience, improve coordination with road, rail and energy agencies, and boost investor confidence in the sector.

“Terrestrial fibre networks, essential to our national broadband system, remain largely undocumented and inconsistently reported across operators, hampering informed decision-making by multiple stakeholders. Investment decisions, including those under the Universal Service Fund and the Digital Superhighway initiative, have at times advanced without knowledge of existing infrastructure, resulting in the unnecessary duplication of routes, inefficient allocation of capital, preventable damage during construction and other activities," Mugonyi stated.

Stakeholders have also called for the streamlining of wayleave fees and other charges and licences. They argue that the lack of a standard rate has forced some investors to set up shop elsewhere, denying Kenya revenue and growth opportunities in the digital sector.