Kenya is predicted to be one of the fastest growing telecom markets in Africa and the Middle East through 2014, propelled by strong projected growth in the mobile data services, particularly mobile banking, according to a new report from Pyramid Research.
With revenue expected to grow at a CAGR of 5.1% in the 2009 to 2012 period, Kenya’s telecom market exceeds the expected growth of Turkey and Saudi Arabia and approaches those of Nigeria and Egypt, noted Deniss Radcenko, Analyst at Pyramid and author of the report.
“As the economy recovers in 2010, Pyramid expects that the increasing adoption of new services will result in stronger total revenue growth, reaching more than $1.6 billion in 2014,” Radcenko said. “Driven by the expansion of data services, particularly mobile banking, the mobile market will expand to $1.4 billion in 2014; the success of mobile data services, such as Safaricom’s M-Pesa money transfer service, demonstrates the potential for mobile banking initiatives.”
“Pyramid expects the total number of mobile subscribers to rise from 18.7 million mobile subscribers at year end 2009 to 30.5 million in 2014, constituting a penetration of population of 68%,” Radcenko explained, “With increased competition being the main driver as lower service tariffs bring mobile services within reach of a greater proportion of the population.”
Broadband internet services revenue is also expected to grow over the next five years, generating $76 million in 2014, up from $20.6 million in 2009, a CAGR of 30%.
The research paper on Kenya from Pyramid offers a precise profile of the country’s telecommunications, media, and technology sectors based on proprietary data from our research in the Kenyan market. It provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies, such as WiMax, IPTV, and VoIP. It provides a comprehensive view of the Kenyan communications market by analyzing key trends, evaluating near-term opportunities, and assessing upcoming risks factors.