Kenya national e-commerce strategy

Kenya’s national e-commerce strategy aims to strengthen its position as a digital leader in Africa by promoting inclusive, secure, and trusted e-commerce services. The strategy, led by the Ministry of Information, Communications and the Digital Economy, and the Ministry of Trade, Investments and Industry, with support from UNCTAD, seeks to build trust among businesses and consumers and broaden access to e-commerce.

Kenya has a robust digital infrastructure, with 96% internet penetration and widespread 3G and 4G coverage, supported by innovative mobile payment solutions like MPESA. These advancements have driven significant growth in online shopping, which rose from 9% in 2017 to 16% in 2021, placing Kenya third in Africa after Mauritius and Tunisia. However, challenges remain, such as limited access to digital devices, uneven network coverage, high transaction costs, and regulatory hurdles.

The strategy envisions inclusivity across all demographics and regions, aiming to lower e-commerce costs, improve delivery speed, and build trust in online platforms. Key goals include enhancing legal frameworks, expanding ICT access, improving skills and financing opportunities, and streamlining trade processes. The strategy also emphasises boosting e-commerce adoption among businesses to increase market reach, particularly under the African Continental Free Trade Area.

A coordinated governance structure involving multiple stakeholders will oversee implementation, with UNCTAD playing a significant supporting role. The initiative aligns with the East African Community’s broader e-commerce strategy and benefits from international donor support, including Germany, Sweden, Switzerland, and the Netherlands.

The strategy for e-commerce in Kenya is set in the context of broader government policy and policies in key areas that support e-commerce. These include:

• Vision 2030, which is a series of medium-term plans: The third plan, ending in 2022, is supporting the development of transport, logistics and road infrastructure, education, fibre-optic networks, youth entrepreneurship and skills.

• The Digital Economy Blueprint 2019 contains development strategies, such as the e-commerce strategy, which will drive the expansion of a digital economy in Kenya.

• The National ICT Policy 2019, which envisages Kenya as a globally competitive knowledge-based economy, with initiatives to establish universal access to ICT infrastructure and services, including high-speed broadband and data centres, setting a target for contribution of 10 percent to the gross domestic product by2030.

• The National ICT Policy Guidelines 2020, acknowledge that an effective postal and courier system is key to the development of e-commerce and the digital economy while ensuring that the country will have a vibrant and efficientpostal and courier sector across physical, electronic and financial platforms.

• The Kenya National Digital Master Plan2022–2032, which includes many initiativesassociated with the development of ICTand ICT skills development.

• The National Payments Strategy 2022–2025, whose initiatives will lead to many improvements in e-payments.

• The National Trade Policy, launched inJuly 2017 contains development principlestowards creating an export led and efficientdomestic economy.

• The National ICT Strategy for Educationand Training, which includes initiatives forenhancing the position of ICT education inthe curriculum at all levels.

• The East African Community (EAC)E-Commerce Strategy, which sets a broader context, largely harmonised with the Kenyan e-commerce strategy. Measures in these policies and plans that are already being implemented will support the development of e-commerce.