[Kictanet] President Directs for a Digitization Campaign

[Bill Kagai]

Source - http://www.statehousekenya.go.ke/

SPEECH BY HIS EXCELLENCY HON. MWAI KIBAKI, C.G.H., M.P., PRESIDENT AND
COMMANDER-IN-CHIEF OF THE ARMED FORCES OF THE REPUBLIC OF KENYA DURING
THE OFFICIAL OPENING OF THE SAFARICOM HOUSE AT SAFARICOM HOUSE,
WESTLANDS, NAIROBI ON 24TH MAY, 2006

Ladies and Gentlemen,

I am delighted to join you on this occasion of the official opening of
Safaricom House, the new home to one of Kenya's largest corporate
organizations. I take this opportunity to commend the Board of
Directors and staff of Safaricom Limited for the exemplary manner in
which they have managed the company.

Today, Safaricom is one of the largest mobile phone services company
in the region. Apart from directly employing about 900 people,
Safaricom indirectly employs thousands of Kenyans in related fields,
ranging from mobile phone support services to mobile phone stalls and
calling booths across the country. Moreover, the company is now one of
the leading taxpayers in the country, and attained the second position
in the ranking of distinguished taxpayers in the last financial year.

Ladies and Gentlemen,

As you are aware, access to knowledge, information and communication
is crucial to the development of any country today. By enabling people
to communicate and interact, despite large physical distances, mobile
communication has brought important changes in work practices and
lifestyles. Indeed, investment in Information and Communication
Technology infrastructure and development of appropriate human skills
is key to ensuring the competitiveness of our country in the unfolding
global digital society. It is for this reason that my Government
created the Ministry of Information and Communications. This ministry
is charged with the responsibility of managing two inter-related
sub-sectors namely, Information and Broadcasting, and Information and
Communication Technology.

These sub-sectors are crucial catalysts to the growth of other sectors
of the economy and are therefore expected to contribute immensely to
economic recovery and wealth creation. The Government, through the
Ministry of Information and Communications, is undertaking a wide
range of measures aimed at developing the ICT sector in the country.
These measures include, the liberalization of the information and
communication sector, that has opened the way for numerous players to
compete in providing services to wananchi.

We are also carrying out human resource development for industry and
investment in the necessary infrastructure such as the Very Small
Aperture Technology. We are encouraging the growth of ICT because of
its enormous potential to absorb our young people into gainful
employment. Today, Information and Communication Technology is one of
the fastest growing sectors in Kenya. The sector is providing
investment and employment opportunities to a large number of Kenyans
and consequently contributing to our national objective of poverty
reduction.

Mobile telephony has grown remarkably, with the number of mobile
telephone lines increasing from 15,000 six years ago to the current
5.5 million. A few years ago, access to telephone services was a major
problem for many Kenyans who had to walk long distances to the nearest
public phone. With mobile telephony spreading to the rural areas, more
Kenyans are benefiting from the rapid growth of mobile phone services
taking place in our country. Today, many Kenyans are able to
communicate easily and carry out their economic activities more
effectively. Truly, the convergence in telecommunications is rapidly
transforming our society into an information and communication
society.

It is encouraging to note that this growth has provided a reliable
form of communication to rural communities thereby enabling our
farmers to find markets for their produce. The mobile phone is today
no longer a status symbol of the urban elite, but a vital tool of
modern day communication. In spite of this progress, however, there is
still room for continued growth and expansion of the ICT sector in the
country. My government is putting in place an enabling environment to
ensure expansion of the sector, which is expected to stimulate further
economic growth.

Indeed, the aim of my government is to create a modern and efficient
telecommunications infrastructure in order to position Kenya as a hub
of industrial, commercial, financial and ICT services in the region.
To achieve this objective, we target to improve tele-density in rural
and urban areas. We should expand our mobile telephone penetration
from the current 18 percent of our population to 32 percent. Plans are
also underway to expand the Internet bandwidth, to increase speeds in
data processing and data transfer. Measures are also in place to
implement a rural telecommunications programme that will cover all
districts in the country in order to bring services closer to the
people.

We have achieved substantial progress in liberalizing the
telecommunications industry. What Kenyans now expect is to reap the
full benefits of these achievements in terms of cheaper telephone
services and increased access. Indeed, while opening the outsourcing
strategy conference in February this year, I announced the removal of
duty on all computers and computer accessories as we continue our
efforts of making Kenya a regional service centre. We must now move
more boldly towards achieving the goal of making Kenya a leading
technology centre. In this regard, I am directing the Ministry of
Information and Communication and other related ministries to start a
digitization campaign.

The campaign should focus its strategies on how to reduce transaction
costs, enhance local content and create employment opportunities for
our youth. In addition, the Government will continue carrying out
reforms in the sector, including restructuring of critical departments
and parastatals.

As part of this commitment, and as I announced three months ago, the
Government has approved the restructuring of Telkom Kenya. Under this
arrangement, 9 percent of Telkom's shareholding in Safaricom will be
sold to finance the restructuring programme. The sale of Telkom shares
through an Initial Public Offering is expected to be concluded by
April 2007. In addition to this, the expansion and modernization of
telecommunications services is on-going with the laying of a fiber
optic network between Nairobi and Mombasa.

I am also optimistic that both the government and private sector will
find a way to fast track the laying of the undersea fibre optic cable.
This project is crucial in order to further reduce the cost of
connectivity in this country and the region. It will also enable us
compete effectively as a regional telecommunications hub. I appeal to
all parties involved in this project to resolve any outstanding issues
speedily and to begin implementation of the project which will herald
a new dawn in the area of telecommunications in our region.

I also encourage investors to join hands with the Government in
developing the ICT sector throughout the country. Indeed, there is
vast investment potential in ICT, especially in the rural areas where
tele-density remains unacceptably low. Investors should view the
existing untapped potential as an investment and business opportunity,
which should be fully exploited. I encourage mobile phone operators to
deploy new technologies in rural areas in order to increase
accessibility to internet. In particular, wireless broadband has both
the potential and capability of providing communications connectivity
to schools, government offices at the district and divisional levels,
as well as offices for other rural-based organizations.

As I conclude my remarks, I wish to commend the Safaricom Foundation,
for it's support to a wide range of projects in health, education,
culture, sports and the environment. I encourage you to continue
ploughing back some of your profits into worthwhile social causes.

With these remarks, ladies and gentlemen, it is now my pleasure to
declare Safaricom House officially open.

Thank you and God bless you.


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With Kind Regards,
Bildad Kagai
MD - Circuits & Packets Communications Ltd
Content & Training Partner - JKUAT E-Government Academy
Suite B2, Tetu Apartments, State House Avenue
P. O. Box 20311 - 00200
Nairobi, Kenya
Tel. 254 20 2728332
Fax. 254 20 2726965
Cell. 254 722 379409
URL. www.circuitspackets.co.ke
URL. egov.jkuat.ac.ke