Safaricom plans to grow its digital business enterprises and diversify revenues to exploit Kenya’s growing digital economy.
The telco that aims to become a purpose-led technology organization by 2025, will leverage its connectivity and experience by expanding its tech solutions in the areas of digital business through cloud computing, cyber security, and the internet of things (IoT) underpinned by IT consulting services.
The IoT technology enables device-to-device communication over the internet, including tracking and ring-fencing of assets among other services.
“As Kenya’s digital economy continues to expand across various sectors, we are well prepared to provide matching tech solutions that will meet the digital trends and opportunities for large, small, and medium-sized enterprises, said Peter Ndegwa, Safaricom chief executive.
Ndegwa made the remarks during the FinTech Innovation Week event at the Michael Joseph Center in Nairobi on Monday.
Safaricom bets on the new business plan to play a bigger role in digitizing and transforming businesses in various sectors including education, health, and manufacturing.
“This aligns with our long-term strategy to offer technology-based solutions that ensure everyone has the capacity to participate and thrive in the digital economy as we seek to become a purpose-led technology company,” Ndegwa said.
Kenya’s tech hub is estimated to be worth at least KSh120 billion with the manufacturing sector boasting an 80 percent adoption rate.
According to research done in 2021 by the Communications Authority (CA) and the Kenya National Bureau of Statistics (KNBS), in Kenya, 35.6 percent of public sector institutions use cloud computing services in comparison to only 22.9 percent of private businesses.
Cyber-security threats remain a major factor in the success of a digital economy with sector statistics report by the Communication Authority of Kenya indicating detection of over 70 million cyber threats during the first quarter of the 2021-2022 financial year. This has become a critical area for a business that is considering digitalization of its processes.
Recently, Safaricom announced the successful pilot of its telematics solution for vehicle tracking – a part of the internet of things (IoT) solutions under development.
By installing smart sensors in two East African Classic Rally vehicles that continuously relayed data to a connected digital platform, the telco proved the resilience, elasticity, and ubiquity of its telematics smart tracking system.