Cablegate: Information Requested for Secretary's Initiative On Global


DE RUEHNR #3952/01 2551411
P 121411Z SEP 06





E.O. 12958: N/A
SUBJECT: Information Requested For Secretary's Initiative On Global
Internet Freedom (GIFT)

REF: STATE 142147

1. The GOK generally recognizes the role of information
Communication and Technology (ICT) in national development and the
need for a national policy that promotes and facilitates private
sector investment for the benefit of all Kenyans. The Kenya
Communications Act (KCA) 1998 and the GOK's subsequent policy
guidelines have liberalized the ICT market, promoted private sector
investment, and call for expansion of communication services to all
parts of the country. The ICT sector has grown quickly following
liberalization, but Kenya is still working to develop a policy and
strategy to spread access to ICT and postal services to rural areas.
USAID has funded projects with ICT components or focus in the
education, health, natural resource management, and e-government.

ICT Liberalization Expands Internet Penetration
--------------------------------------------- ---

2. Until recently, the state monopoly Kenya Posts and
Telecommunications Corporation's (KP&TC) inhibited development of
the ICT sector through poor service and high prices. The GOK began
the liberalization process in 1998 with the KCA and Postal
Corporation Acts, which split the KP&TC into three separate entities
on July 1 1999: Telkom Kenya (TKL), the Postal Corporation of Kenya
(PCK), and the Communication Commission of Kenya (CCK). In December
2001, the government issued Policy Guidelines outlining the overall
government's objective for the ICT sector as being, "To optimize its
contribution to the development of the Kenyan economy as a whole by
ensuring the availability of efficient, reliable and affordable
communication services throughout the country."

3. In September 2004, the CCK issued a new licensing framework "To
ensure that the regulatory environment is friendly to investment and
conducive to the provision of modern communication services." Most
critically, the framework allowed the licensing of additional
Internet backbone and gateway operators, broadcasting signal
distributors, and commercial VSAT operators, and allowed them to
carry any form of multimedia traffic, for example, VoIP.

4. The ICT private sector has grown rapidly since deregulation. See
table 1. As service quality rose and prices fell, more companies
and individuals signed up and invested in ICT, to the point where it
now plays a significant role in Kenyan society and economy. The
private sector ICT workforce has doubled or tripled since 2004. If
the East African under sea fiber-optic cable project (EASSy) or an
alternate cable are implemented along an open access model, and the
GOK ensures competition for carriers from the landing point in
Mombasa, connectivity prices would drop and Kenya's services sector
could blossom with call centers and other providers taking advantage
of the educated, English-speaking workforce.

Still Limited ICT Access For Most Kenyans

5. In Kenya, the penetration of communication services is still
skewed towards urban areas, especially provincial capitals. There
is thus need to expand availability of basic communication services
of acceptable quality and at affordable prices to rural people.
According to a November 2004 study, people traveled on average more
than 22 kilometers to reach the nearest Internet provider, with some
traveling 141 kilometers. Most people accessed the internet via
cyber cafes (65%), followed by friends (16%), work place (14%) and
post office (6%). In 2006, the Ministry of Communications estimated
1.5 million Kenyans use the internet.

Table 1
2002 2003 2004 2005
--------------------------------------------- ---------
Vendors and contractors
(No. employed) 783 813 888 912
Technical personnel
(No. employed) 108 139 182 215
Cyber cafes/telephone bureau -- 51 70 90
Internet service providers 72 76 78 72
Commercial VSAT Hub operators 1 2 2 6
Internet backbone and gateway
Operators 1 1 1 6
Local loop operators -- 2 4 13

USAID IT Projects

6. USAID Projects in Kenya with ITC components or focus are as

Natural Resource Management
Project Name: none

Overview: USAID is supporting the Kenya Wildlife Service to improve
its management.
Recipient: Kenya Wildlife Service

IT-related support:
(1) Implement a "Smartcard" system to strengthen revenue collection
and management of revenues
(2) Develop an integrated management information system
(3) Establish an asset register system

FY 2006: $35,000;
FY 2007: $435,000;
FY 2008: $150,000


A. Project Name: ICT in education options paper

Overview: Research and preparation of a report on how to integrate
ICT in education for the government of Kenya.

Recipient: Ministry of Education & Ministry of Science and

IT Component: USAID fully funded a team of American and Kenyan
contract consultants that developed an ICT in education options
paper. Project completed.

FY 05 Funding: U.S. $176,000.00

B. Project Name: Mindset Kenya Project

Overview: Project proposal to support the integration of ICT in
education by digitizing education curricula content in the 22
Primary Schools Teacher Training Colleges.

Recipient: Ministry of Education & Ministry of Science and

IT Component: Supply of computers and the peripherals devices,
computer based multi media, DVD Players, DVDs, TVs. Installation of
Local Area Networks and rehabilitation of computer laboratories.

FY 06 Funding: U.S. $250,000.00
Funding from Mindset South Africa $600,000

C. Project Name: none

Overview: USAID is supporting the training of primary school
teachers across Kenya.
Recipient: Ministry of Education

IT-related support:
(1) Locally developed education content translated into
computer-based multi-media platforms
(2) Development of a teacher training program that integrates ICT as
a mode of training and a method of classroom instruction

FY 2006: $250,000
Five-year projected funding: $1,000,000

A. Project Name: none

Overview: USAID is building assisting the Kenya Ministry of Health
(MOH), Division of Reproductive Health, to establish a resource
center to manage research.
Recipient: Ministry of Health

IT-related support: Provision of computers and technical assistance
to create a web site that will allow MOH staff and medical students
to access health information

Funding: FY 2005 $50,000

B. Project Name: none

Overview: USAID is assisting the Kenya Ministry of Planning,
National Coordinating Agency for Population and Development (NCAPD)
to disseminate population and development data.
Recipient: Ministry of Planning

IT-related support: Provision of computers and technical assistance
to create a web site that will allow NCAPD staff to access and
disseminate Kenyan data via the internet

Funding: FY 2005: $50,000

C. Project Name: Wide Area Information Sharing System for
REDSO/ESA/PHN Partners in Kenya, Tanzania and Uganda.

Overview: To promote increased sharing of regional analytical
information among USAID/EA's regional health partners.

Recipient: PHN Partners Center for African family Studies (CAFS) in
Kenya, Regional Center for the Quality of Health Care (RCQHC) in
Uganda, and Commonwealth Regional Health Community for Eastern and
Southern Africa (CRHCS) in Tanzania.

IT Component: Provision of upgraded bandwidth, access to information
resources, health information databases, software and ICT services,
development of web enabled applications and tools.

FY 02/03 Funding: U.S. $100,000.00

A. Project Name: none

Overview: USAID is working to improve productivity in the dairy
sector and consumption of diary products.
Recipient: Land o Lakes, ABS TCM Ltd, World Wide Sires, ILRI

IT-related support:
1) Feed formulation software packages for improved production
(2) Automation of farmers' cooperatives to improve efficiency
(3) A market information system
(4) A "Dairy Toolbox" that is a single virtual location with
downloadable information and resource for smallholder dairy farmers

FY 2005: $150,000
FY 2006: $250,000

B. Project Name: none

Overview: The USAID-supported Kenya Horticulture Development Program
is working to increase the production and trade of non-traditional
horticulture products.
Recipient: Fintrac Inc

IT-related support:
(1) KHDP website established to disseminate information
(2) use of CIRIS monitoring and evaluation software to track field

FY 2005: $30,000
FY 2006: $40,000

C. Project Name: none

Overview: USAID is working to increase the production of maize
(corn) and develop new markets.
Recipient: ACDI/VOCA

IT-related support:
(1) Provision of a computer-based inventory system that links silo
and financial systems
(2) Provision of accounting, database and costing software
(3) Use of SMS as a way to relay market information
(4) Market information website
(5) An interactive voice response system through which farmers are
able to get information on commodity prices
(6) Radio to disseminate best practices to farmers

FY 2005: $50,000
FY 2006: $60,000

E-Government and Anticorruption
A. Project Name: Last Mile Initiative Kenya program

Overview: Aimed at enabling rural communities to use ICT to access
government and development services, including education,
socio-economic, agriculture, and civic education.

Recipient: e-government secretariat to the Cabinet

IT Component: Set up a tele-center equipped with networked computers
and internet connection.

FY 06 Funding: U.S. $100,000.00(USAID/Kenya)

B. Project Name: Regional Anticorruption

Overview: Support Direct Trader Input (DTI) centers in the region

Recipient: Clearing and Forwarding associations in Kenya, Tanzania,
Uganda and Rwanda.

IT Component: Provision of computers and non-computer ICT equipment
to enable clearing and forwarding agents to enter clearing
information through the DTIs that are located away from the Ports
and customs offices. This reduces Clearing Agents/Government
officials' human interface that has been identified as a major
source of corruption.

FY 05 Funding: U.S. $200,000.00

Conflict Management

A. Project Name: Conflict Prevention Mitigation and Response (CPMR)

Overview: Effective Management of Conflicts in the Horn of Africa.

Recipient: Five non-state CPMR actors.

IT Component: Provision of computer and non-computer ICT equipment,
Internet connection and Website developments to enable the CPMR
actors to collect, process and disseminate conflict information in
the Horn of Africa. Also two Community Learning and Information
Centers (CLICs) and nine sub-regional offices for one of the
partners have been supported under this activity. The CLICs and the
facilities in the sub-region offices provide unique ICT access
opportunities for marginalized communities in the region.

FY 02 Funding: U.S $250,000.00
FY 03 Funding: U.S $168,664.00
FY 04 Funding: U.S. $ 34,000.00
FY 06 Funding: U.S. $ 89,000.00
Total funding: U.S $541,000.00

B. Project Name: Conflict Management in the Somalia, Kenya,
Ethiopia, Uganda and Sudan cross-border zones.

Overview: Effective Management of conflicts in these cross-border

Recipient: Various CPMR actors and stakeholders operating in the
cross-border zones.

IT Component: Provision of Integrated Information and communications
Technologies Networks (IICTN) to support CPMR activities through
networks and partnerships in the two clusters.

FY 06 Funding: U.S. $ 40,000.00
FY 07 Funding: U.S. $350,000.00 (proposed)

Trade and Economic Development

Project Name: East and Central Africa Trade Hub

Project Description: Ratification of the World Trade Organization
Information and Communication (WTO/IT) Agreement. The IT agreement
desires to achieve maximum freedom of trade in IT products and to
encourage continued technological development of the IT industry on
the worldwide basis.

Recipient: Kenya, Uganda and Tanzania

I.T. Component: The ECA/Hub is helping the EA countries to ratify
the WTO/IT agreement by providing technical support and, ICT
equipment and other facilities.

Recipient: Kenya, Uganda and Tanzania

FY 05 & 06 Funding: approximately US$60,000

Regional Projects

A. Project Name: Data Exchange Platform for the Horn of Africa -

Recipient: UN Agencies working in Humanitarian response issues;

ICT component: Provide updated, timely, accurate and ground truthed
data to humanitarian actors working within the Horn region; and act
as a data clearing house to any contentious sectors. Assist
decision makers by producing various sector and activity specific
Geographic Information Systems (GIS) products.

FY06 funding: USD$250,000 (approved).

B. Project Name: Conflict Early Warning early response mechanism.

Overview: Improving Conflict Early Warning and Early Response
Mechanisms in the region.

Recipient: Inter-governmental Authority on Development (IGAD)'s
Center for Conflict Early warning and Early Response Network
(CEWARN) and National CEWARN Coordinating Offices.

IT Component: Provision of computers, Internet access and Website
development to support IGAD's Conflict Early Warning and Early
Response mechanisms in IGAD member states.

FY 00 - FY 06 Funding: over $300,000

C. Project Name: Harmonization of Telecommunications Regulatory
Framework Project.

Overview: USAID/EA supports COMESA to harmonize ICT policies,
guidelines and procedures as well as improve regulatory institutions
in its region in order to create an integrated market that would
attract investment to the ICT sector, facilitate trade and other
aspects of development, and promote access to ICT by the rural

Recipient: Common Markets for East and Southern Africa (COMESA)

I.T. Component: Provide funds to enable COMESA and its member
countries to develop model ICT regulation and policies, form an
Association of Regulators of Information and Communication in
Eastern Africa (ARICEA) to facilitate adoptions of the model
regulations and policies by the COMESA member states.

FY 99 to date Funding: US$ 1500,000

D. Project Name: Regional Agricultural Trade Intelligence Network

Overview: RATIN (, supplies grain traders with online
trading information, ranging from early warning information to
market prices and regional trade analysis on maize, beans and rice.

Recipient: Regional Agricultural Trade Expansion Support (RATES)
Program (Implemented by Chemonics Limited)

I.T. Component:

FY 05 & 06 Funding: over US$2M.

E. Project Name: The African Regional Commodity Link and

Project Description: Trade Africa ( website
promotes maize and beans trade in Africa. The website promotes the African textile and cotton
industry by providing an online trading board.

Recipient: Regional Agricultural Trade Expansion Support (RATES)
Program (Implemented by Chemonics Limited

I.T. Component: provision of computers and website development and,
establishment of a call center that takes advantage of available
communication technology to email, SMS, world space, cellular phone,
facsimile, land-line trade opportunities to regionally based

FY 05 Funding:
FY 06 Funding:

F. Project Name: Information Technology Institutional Strengthening

Overview: To support COMESA secretariat to enhance communication
within and with the member states and other stakeholders.

Recipient: Common Markets for East and Southern Africa (COMESA)

I.T. Component: Implementation of Value-Added Services such as
Vide-conferencing and VOiP, e-applications and necessary

FY 05 to date Funding: US$400,000

G. Project Name: IGAD Climate Application and Prediction Center

Overview: Provide Weather and Early Warning forecasting in weather
and climatological outlook for the Horn of Africa region on a 3
months basis to actors in the region;

Recipient: Inter-Governmental Authority on Development (IGAD)

ICT component: Involves use of the land Earth and Geostationary
Satellite based observation systems and other Hydro-meteorological
tools to gather and disseminate data in a user-friendly format
including maps, and statistical charts.

FY 05 funding:


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