ECOMMERCE and DIGITIZATION OF THE KENYAN ECONOMY BY

ECOMMERCE and DIGITIZATION OF THE KENYAN ECONOMY BY DR. KATE LITONDO UNIVERSITY OF NAIROBI University of Nairobi ISO 9001: 2015 1 Certified http: //www. uonbi. ac. ke

41 st UNCTAD Regional Course on International Economic Agenda University of Nairobi ISO 9001: 2015 2 Certified http: //www. uonbi. ac. ke

Learning Objectives Disruptive technologies of digitization in Kenya The Kenyan government digitization initiatives The benefits and challenges of digitization in Kenya University of Nairobi ISO 9001: 2015 3 Certified http: //www. uonbi. ac. ke

Introduction Kenya is a celebrated African tech hub, renowned for exemplary innovations across various sectors – from finance to transport, education and general commerce. Consequently, it has earned its place on the global map as a hotbed of pioneering digital ideas and implementations. Underpinning all this is the governments initiatives

Online Shops in Kenya MASOKO CHEKI ALIEXPRESS IN KENYA MAMAMIKES JUMIA MIMI KILIMALL ELECTROHUB OLXKENYA AMANBO SHOPIT

Online Shops in Kenya…. . MASOKO It is the first e-commerce platform in Africa to be launched independently by an Mobile Network Operator(MNO). The platform has allowed Safaricom to leverage the reputation and trust of its highly successful mobile money service, M-Pesa. .

Online Shops in Kenya…. . As a mobile money provider, Safaricom brings several unique strengths to the e-commerce domain. As of November 2018, Masoko had 120 (preapproved) active vendors and offered over 30, 000 products or stock-keeping units (enhanced by the recently launched Masoko Fresh, a new part of the portal that offers delivery of fruits, vegetables and dairy products).

Online Shops in Kenya…. . As in other developing countries, Safaricom’s main e-commerce challenge has been logistics. The MNO is addressing this by using its sizeable agent network (160, 000+) as delivery and collection points, as well as multiple delivery partners. This has been a success; Masoko is now delivering products to 45 of 47 counties in Kenya. University of Nairobi ISO 9001: 2015 8 Certified http: //www. uonbi. ac. ke

Online Shops in Kenya…. . ALIEXPRESS IN KENYA Aliexpress and Alibaba products buying and shipping to Nairobi, Kenya: Aliexpress is a sister company of Alibaba. The difference between the two is that Alibaba. com sells items in wholesale to manufacturers, companies and re-sellers while Aliexpress. com is a retail marketplace that sells items to buyers or individuals. Aliexpress is like Jumia and Kilimall but it connects millions of buyers and sellers across globe.

Online Shops in Kenya…. . JUMIA. CO. KE Here you will find absolutely everything - from a set of needles to a summer residence. . At jumia. co. ke, you can choose the needed category, for example "Beauty" or "TVs, Audio & Cameras", set up a filter and you will find the needed product within seconds. Some of the complains has been clients ordering items that are not available in the local outlet or take too long to deliver

Online Shops in Kenya…. . KILIMALL. CO. KE It is one of the cheapest shopping platforms among online shops in Nairobi and Kenya. Here you can buy phones and accessories, clothes, shoes, office products, beauty and hair products and many others.

Online Shops in Kenya…. . OLXKENYA. CO. KE – C to C model This international shopping platform, allows users to sell and buy things from each other. Almost every person in Kenya is able to create a personal account here, and sell or buy anything they want (if it's not forbidden by the law, of course). However, most of the products are used or second-hand, thus the prices are noticeably lower than on any other online shops in Kenya. You can even further reduce prices, by bargaining with the seller.

Online Shops in Kenya…. . CHEKI. CO. KE cheki. co. ke is the biggest car selling online platform in Kenya. Here you are able to purchase, sell and even import any car (from other countries). University of Nairobi ISO 9001: 2015 13 Certified http: //www. uonbi. ac. ke

Online Shops in Kenya…. . 14 MIMI. CO. KE This online store is strictly specialized on clothes, shoes and various accessories. The founder and owner of mimi. co. ke is Julie Gichuru, a famous media personality. You can even find pictures of other Kenyan celebrities wearing clothes from various Julie Gichuru collections.

Online Shops in Kenya…. . ELECTROHUB. CO. KE Here you are able to buy all kinds of electronic goodies, from smartphones and smartwatches to various interesting gadgets like tyres and speakers.

Online Shopping from Super markets Supermarkets in Kenya have attempted to have online shoppers, however they are faced with logistic challenges, not all homes or streets have names or numbers which leads to narrow markets. There are those that are trying now “NAIVAS” and “TUSKYS”. There are companies that do shopping for households and deliver at homes. Other technologies, e. ERP and Loyalty cards. University of Nairobi ISO 9001: 2015 16 Certified http: //www. uonbi. ac. ke

Transport Industry…. UBER Uber is the first taxi-hailing app service that was introduced in Kenya in 2015. This is an American based taxi-hailing app which became popular in such a short time. Presently, the Uber is offering its services in Nairobi, Mombasa and Thika. It allows you to automatically pick your current location using GPS. With Uber, you can given three options to choose : Uber X, Uber Select or Uber Chap sity of Nairobi ISO 9001: 2015 17 Certified http: //www. uonbi. ac. ke

Transport Industry…. TAXIFY It was introduced in the country in 2016 and brought a revolution to the taxi industry by offering extremely lower prices. After South Africa, Kenya became the second African country to launch Taxify. Likewise Uber, Taxify is also available on App Store and Google Play Store for download. University of Nairobi ISO 9001: 2015 18 Certified http: //www. uonbi. ac. ke

Transport Industry…. Taxify payments can be easily made via Mpesa, credit cards and cash. Recently, Taxify launched a new option “Boda boda” motorcycles transport that went live on March 15, 2018. University of Nairobi ISO 9001: 2015 19 Certified http: //www. uonbi. ac. ke

Transport Industry…. LITTLE CABS The Little Cabs in Kenya was launched in 2016 in a partnership between Safaricom and Craft Silicon. Right now, the Little Cabs is available within Nairobi only. The app is now available and accessible on Google Play. Trips are payable in cash, debit card, credit cards. , University of Nairobi ISO 9001: 2015 20 Certified http: //www. uonbi. ac. ke

Other Transport Apps Sendy – With the Sendy customers can request and manage their deliveries right from their mobile and also tract the items from pick up to delivery. Quatrix - Through Quatrix, technology provides real time information and link trucks to customers who want their cargo transported, an efficient, fast The Quatrix team will monitor your cargo from pick up to destination and also give you a link to be able to have real time visibility as well. University of Nairobi ISO 9001: 2015 21 Certified http: //www. uonbi. ac. ke

Mobile Applications Transforming Farming i. COW Developed a few years ago, this voice-based WAPenabled application allows farmers to get vital information on animal breeding and feeding methods. Farmers register their cows free of charge through the i. Cow portal and get regular SMSs on breeding and production patterns. University of Nairobi ISO 9001: 2015 22 Certified http: //www. uonbi. ac. ke

Mobile Applications Transforming Farming…. M-SHAMBA M-Shamba is an interactive platform accessible in smart and low-end phones. A regular SMS provides the subscriber with information on production, harvesting, marketing, credit, weather and climate. The information is customized based on location, allowing farmers to know what to grow within the season in their region. Farmers can also share information on various platforms. University of Nairobi ISO 9001: 2015 23 Certified http: //www. uonbi. ac. ke

Mobile Applications Transforming Farming…. MBEGUCHOICE Mbegu. Choice, seed choice in Swahili, is a free app developed jointly by the Kenya Agricultural and Livestock Research Organization, the Kenya Plant Health Inspectorate Service, seed companies and Agriculture Experience, with support from the Kenya Markets Trust. University of Nairobi ISO 9001: 2015 24 Certified http: //www. uonbi. ac. ke

Mobile Applications Transforming Farming…. If a farmer searches for drought-resistant crop varieties to plant during the rainy season, the app will show the best five kinds of seeds, depending on the area and the altitude. University of Nairobi ISO 9001: 2015 25 Certified http: //www. uonbi. ac. ke

Mobile Applications Transforming Farming…. M-FARM M-Farm Ltd is a software solution and agribusiness company. The investors say M-Farm is a transparency tool for Kenyan farmers where they simply SMS the number 20255 (Safaricom Users) to get information pertaining to the retail price of their products, buy their farm inputs directly from manufacturers at favourable prices, and find buyers for their produce. University of Nairobi ISO 9001: 2015 26 Certified http: //www. uonbi. ac. ke M-Farm, works as a transparency tool for farmers.

Mobile Applications Transforming Farming…. VET AFRICA The Vet. Africa app, enables vets, animal health workers and rural farmers to quickly and accurately diagnose livestock illness and identify which drugs are most effective. The app offers a support system not just for livestock farmers but veterinary experts and animal health professionals. University of Nairobi ISO 9001: 2015 27 Certified http: //www. uonbi. ac. ke

Mobile Applications Transforming Farming…. AGROBASE App made with agronomist and farmers in mind, it provides a database with agronomic information on weeds, diseases and pests, including diverse pesticides, herbicides and pesticides details from the selected country. Allows farmers to identify pests, insects and diseases early enough to guarantee crop production and protection. University of Nairobi ISO 9001: 2015 28 Certified http: //www. uonbi. ac. ke

Mobile Applications Transforming Farming…. The app has been used widely by livestock, horticultural, nut, fruit, vegetable and crop farmers to protect their investment and accomplish higher returns. University of Nairobi ISO 9001: 2015 29 Certified http: //www. uonbi. ac. ke

Mobile Applications Transforming Farming…. URBAN FARMING APP Living in an urban setup and thinking about farming? This app shows you how to grow vegetables with ease through constant interactive reminders. Your smartphone will constantly remind you when your plants need some type of care such as fertilizer or water and how to solve the issue of crop disease and common crop pests. University of Nairobi ISO 9001: 2015 30 Certified http: //www. uonbi. ac. ke

Mobile Applications Transforming Farming…. DAIRY LIVE It is a software for dairy farmers and professionals in the dairy industry around the world with a Kenyan reseller, the management software app allows a herd farmer to work smart. Once you have fed information of all your livestock and events such as pregnancy check, vaccinations, semen inventories and breeding you will be able to instantly access your livestock information wherever you are on a computer or University of Nairobi ISO 9001: 2015 31 Certified http: //www. uonbi. ac. ke smartphone.

Mobile Applications Transforming Farming…. BREEDING WHEEL One of the most critical details on a herd is identification of cattle with reproductive problems, service schedule, identifying animal with shorter lactation period, cow drying date management, and calves distribution, among others. University of Nairobi ISO 9001: 2015 32 Certified http: //www. uonbi. ac. ke

Mobile Applications Transforming Farming…. The Breeding Wheel app allows you to access personalized animal data of your dairy herd in the form of a wheel. File with a specific cow’s data, including the image can be shared between devices for remote assistance from a technician. University of Nairobi ISO 9001: 2015 33 Certified http: //www. uonbi. ac. ke

Betting Industry Away from mobile banking and other services offered by phone, users can also use the gadget for predicting outcomes of various sports across the globe. Betting on sporting events using phones has tremendously evolved in Kenya over the past few years to dive into the mobile banking frenzy. This has let to formation and licensing of many University of Nairobi ISO 9001: 2015 34 Certified http: //www. uonbi. ac. ke betting sites in Kenya

Betting Sites in Kenya Hollywoodbet Eazi Bet 1 xbet Cheza cash Betway 22 Bet Kenya Bet. Pawa Shabiki. com Sportpesa VIUSASA Betin Kenya Helabet Kenya Elibet Kenya Powerbets Kenya Betyetu Betika e. t. c. University of Nairobi ISO 9001: 2015 35 Certified http: //www. uonbi. ac. ke

Other Areas Of Digitization Payment of Utility bills Informal sector ecommerce Water and electricity CCTV surveillance cameras in schools M-Banking ( withdrawal. and major roads Police traffic control Deposit etc centres Electricity Tokens – Prepay services University of Nairobi ISO 9001: 2015 36 Certified http: //www. uonbi. ac. ke

Fintech Financial Credit Revolution (49) Mshwari KCB Mpesa Loan Tala Loans Branch Loans Saida Loan Haraka Loan Zidisha Loan Shika Loan FULIZA

TALA LOANS 38 Tala, formerly Mkopo Rahisi, is a product of Inventure which was founded by Shivani Siroya who is also the current CEO. (based in California). To get a loan from the service, all you have to do is to download the Tala app on an Android phone you own. Tala, a company that facilitates financial access to small businesses owners around the world by providing mobile financial tracking tools and direct flexible financing in order to help these

SAFARICOM FULIZA Mpesa 39 One does not require a APP, it uses USSD code *234#. Fuliza Mpesa loan is a form of overdraft by Kenya's largest telco Safaricom and it's mshwari partner Commercial Bank of Africa (CBA). It's an overdraft service or simply Okoa Mpesa loan which allows mpesa users to send money to friends and relatives or pay for services through Lipa na Mpesa with less or zero mpesa account balance. afaricom will be doing direct deductions from

BRANCH LOANS 40 Branch offers loans from Ksh 250 to Ksh 70, 000. Loan terms range from 4 – 68 weeks. Interest ranges from 10% – 27% with an equivalent monthly interest of 1% – 14%, depending on your loan option. There are no late or rollover fees and no collateral necessary. Interest rates are determined by a number of factors, including your repayment history and the cost of lending for Branch

HARAKA 41 Haraka is the quickest and most convenient way to get a loan while you’re on the go! Haraka can offer you access to credit; anytime and anywhere on the comfort of your mobile phone. NO BANK ACCOUNTS OR CREDIT HISTORY REQUIRED!

Digital Currency M-pesa Airtel Money T-Cash Bitcoins Equitel

Strategic Partnership Safaricom and Western Union partner to allow MPesa users to transfer money to and from 200 countries since 2018. Safaricom and Money. Gram International partnered to sent money from abroad to Kenya through their money transfer services. Kenya’s Family Bank Ltd and fintech Simba. Pay also partner to enable M-Pesa customers in Kenya to send money to We. Chat users in China.

Strategic Partnership…. Commercial banks in Kenya have developed microlending apps such as Kenya Commercial Bank’s KCB M-Pesa, Commercial Bank of Africa’s M-Shwari, Equity’s EAzzyl, Co-operative’s M-Co-op Cash, Barclays’ Timiza and Housing Finance’s Whizz that are advancing millions of shillings daily in instant mobile loans. University of Nairobi ISO 9001: 2015 44 Certified http: //www. uonbi. ac. ke

Kenya Government Digitization Govt projects and programs. Huduma Centres Ajira Government Project Konza City Digital Literacy Program Presidential Digital Talent Program Constituent Digital Innovation Hubs

Kenya Government Digitization… Fiber Optic Cables Digital Migration Program (Analogue to Digital Broadcasting Platform) University of Nairobi ISO 9001: 2015 46 Certified http: //www. uonbi. ac. ke

HUDUMA CENTRE Huduma (service) Centres were launched on November 7, 2013, by President Uhuru Kenyatta and have since then gained massive popularity across the country. There are 52 huduma centres in Kenya, at least one in each of the 47 counties. Nairobi County has 5 of them The serves offered these centres depend on the level of digitization of the supportive Government ministries

HUDUMA CENTRE…. All the services offered in these centres can be accessed by anyone having Internet connectivity on the Kenyan Government e-Citizen Portal University of Nairobi ISO 9001: 2015 48 Certified http: //www. uonbi. ac. ke

HUDUMA SERVICES Issuance of Initial Identity Cards Issuance of Duplicate Identity Cards Issuance of Birth Certificates Assessment of Stamp Duty and franking of documents Application for Access to Government Procurement Opportunities University of Nairobi ISO 9001: 2015 49 Certified http: //www. uonbi. ac. ke

HUDUMA SERVICES cont…. Registration of Self-Help Groups and CBOs Registration of Welfare Societies Search of Business Names Registration of Limited Companies Issuance of Police Abstract Issuance of Police Clearance Certificate ISO 9001: 2015 50 Certified http: //www. uonbi. ac. ke University of Nairobi NSSF member registration

HUDUMA SERVICES cont…. Log Book Search (confirmation of status) Online Renewal of Drivers’ license Student Loan Application Loan repayment statements Receive complaints on discrimination based on tribe and religion University of Nairobi ISO 9001: 2015 51 Certified http: //www. uonbi. ac. ke

HUDUMA SERVICES cont…. Issuance of NSSF statements Registration of employer with NSSF Card replacement Receiving NSSF Claims NHIF member registration Pin application/ replacement Issuance of Clearance Certificate/ Tax Compliance ISO 9001: 2015 52 Certified http: //www. uonbi. ac. ke Certificate University of Nairobi

AJIRA GOVERNMENT PROJECT The Ajira(employment) Digital Project seeks to position Kenya as a choice of labor destination for multinational companies as well as encourage local companies and the public sector to create digital work. The overall objective of the project is to make Kenya a freelance hub and the global destination for online work by the year 2022.

AJIRA GOVERNMENT PROJECT…. The specific objectives of Ajira Digital project are to: • Raise the profile of online work amongst all Kenyans; • Promote a mentorship and collaborative learning approach to finding online work; • Enable access to online work for all Kenyans; and • Promote Kenya as a destination for online workers. University of Nairobi ISO 9001: 2015 54 Certified http: //www. uonbi. ac. ke

KONZA TECHNOPOLIS The initiative targets players active in the start-up community and private sector to showcase Konza Technopolis progress towards the vision of becoming Africa’s Silicon Savannah and discuss the major hurdles harboring growth and scaling up of innovation space in Kenya is ranked fourth in Africa in the Global Innovation Index and stands at position 80 globally.

KONZA TECHNOPOLIS…. 13. 02. 2019… The Government of Kenya, through the Ministry of Education is in partnership with the Republic of South Korea to establish a graduate only university at Konza Technopolis. University of Nairobi ISO 9001: 2015 56 Certified http: //www. uonbi. ac. ke

KONZA TECHNOPOLIS…. The institute, Kenya Advanced Institute of Science & Technology (Kenya- KAIST) to be established at Konza Technopolis, is modeled after the Korean Advanced Institute of Science & Technology (Korea- KAIST) whose design model is a research focused university that fosters elite human resources in science and technology needed by the nation. (LG and SAMSUNG)

DIGITAL LITERACY PROGRAM The government initiated the program out of the conviction that technology has the power to bring about systemic change in basic and higher education by transforming teaching and learning through integrating technology in the learning environment. In the on-going implementation targeting all public Primary schools in Kenya.

DIGITAL LITERACY PROGRAM…. Over 75000 teachers in public Primary Schools have been trained in readiness for the project implementation. With full implementation of the DLP project, the government expects increased national digital literacy levels and revolution of the countries digital economy. University of Nairobi ISO 9001: 2015 59 Certified http: //www. uonbi. ac. ke

Presidential Digital Talent Program (PDTP) The progam aims at building ICT technical capacity in government for effective service delivery. The program provides internship to ICT and engineering graduates. The trainees undergo mentorship in private and public institutions for a period of one year. The first 100 trainees graduated in March 2016 and another group of 400 are already onboard undergoing training. The program aims at achieving workforce development for effective and efficient services delivery leveraging on ICT.

Constituency Digital Innovation Hubs The projects in its initial stages had its first proof of concept successfully set up in Limuru. Procurement process is being undertaken. The objectives of the project is to support entrepreneurs and access to free Wi-Fi in all the 290 constituencies countrywide. It will also enhance awareness and uptake of on-line platforms for employment and business opportunities

FIBRE OPTIC CABLE By June 2013, 4, 300 Km of the National Optic Fibre Backbone (NOFBI) Network had been laid in 27 Counties. In June 2016, over 6, 000 Km of NOFBI network had been laid across all the 47 Counties. Installation of equipment has been completed in 29

National Educational Management Information System The National Education Management Information System (NEMIS) is web based data management solution which collects data and information from education institutions; processes and reports the status of designed indicators; and provides the sector a solid ground for effective management to ensure that every Learner counts. The Online Platform tracks performance mobility of learners and teaching staff to ensure efficiency and effective utilization of education resources.

Digital Migration from Digital to Analog Broadcasting Platforms Following migration to the digital platform, rapid growth in the TV broadcast industry has been witnessed. Already there are 65 Free to air TV stations in the country. The progress of digital migration is 80% complete. This has resulted in the sale of Digital TVs in the country University of Nairobi ISO 9001: 2015 64 Certified http: //www. uonbi. ac. ke

HUDUMA NAMBA Huduma Namba generated by the National Integrated Identity Management System (NIIMS) will be used to save biometric, demographic and physical details of all Kenyan residents mainly for efficient government service delivery which is good. However, having a legal database containing sensitive information on people could pose severe risks alike if that information is not well protected from abuse. University of Nairobi ISO 9001: 2015 65 Certified http: //www. uonbi. ac. ke

Huduma Namba Information Birth certificate Number National ID Number KRA PIN Number Driver License Number NHIF Number NSSF Number Permanent and Current residential address University of Nairobi ISO 9001: 2015 66 Certified http: //www. uonbi. ac. ke

ISSUES of DIGITIZATION Security Privacy of Information Creation of Internal Digital Divide Internet Services too expensive Addiction to electronic devices, betting, High taxation on mobile money transactions Lack of Legislation ISO 9001: 2015 University of Nairobi 67 Certified http: //www. uonbi. ac. ke

THE END THANK YOU University of Nairobi ISO 9001: 2015 68 Certified http: //www. uonbi. ac. ke