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Chamber Of Commerce Kenya
Martin Muckles
While the rest of the world is trying to cope with the global recession that is hitting markets all over, Kenya has a reason to be proud. The nation is steadily seeing a boom in internet business through the years. Rising E-commerce in Kenya is the new buzzword and business owners and entrepreneurs are making full use of this opportunity. Newer technologies are being implemented to improve internet facilities across the nation so that corporates can open up more horizons into the world of Internet Businesses for the common Kenyan. High speed fiber optic cables are being bought by the Government and Kenya will soon have the closest they have come so far to an online payment system (similar to PayPal) ? Safaricom's Pay Bill service.
To understand this rise, one has to first know what exactly the current scope of internet business in Kenya is. This usually consists of circulation, delivery and supply, advertising and promotion of goods and services through the internet along with other telecommunication technologies. Along with this, online payment systems which incorporate seamless banking facilities are another crucial feature of e-commerce. Fortunately, businesses in Kenya are seeing a rise in both these aspects.
Back in 2002, Telkom had launched a massive fiber optic cable installation program in association with Teleglobe, a North American company. The aim was to install the network throughout Kenya which would eventually:
1.Reduce communication costs across the country and make telecommunication more feasible.
2.Improve the capacity and effectiveness of the existing internet infrastructure.
3.Trim down the load on the nation's existing telephone network.
Within a few years, the overall network of high speed internet communications has dramatically improved and this is just the beginning. The government plans to spend more than 10 million USD to further develop internet businesses in Kenya.
Another notable development is the Kenyan cellular giant, Safaricom's Pay Bill service. This service is part of M-PESA ( or mobile pesa) which allows registered users to pay bills through their mobile. Now the new service will allow merchants to indulge in e-commerce through the online billing system. Safaricom, through this initiative, has taken a major leap to ensure the progress of Internet business. However, the project is still blossoming and it will take a little more time till the full potential is harnessed.
The popularity of the internet and the many avenues that it unfolds is also being realised by Kenyans with each passing year. The number of internet users has increased in the past five years ? from 1.9 million in 2003 to approximately 3.5 million currently. Simple businesses such as selling flowers now have an online presence in Kenya which can be evident through sites such as Kenya Flowers and Lotus Kenya. In fact, the total number of .ke domains has also risen rapidly ? way back in April 2006, there were less than 2000 domains but currently; there are more than 10000 registered .ke domains.
This leap in internet businesses is phenomenal and is only expected to grow over the next few years.
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