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Treasury has allocated Sh7 billion to Information and Communications Technology, although future votes will be slowed down as the government re-channels the funds to more pressing areas.
According to estimates for 2011/12 fiscal year released by Finance Minister Uhuru Kenyatta, Treasury has given the ministry Sh1.94 billion as recurrent and Sh5.36 billion for development. This is an increase of Sh1.53 billion from Sh5.77 billion approved by Parliament in the 2010/11 fiscal year.
Although ICT is said to be the future engine for growth as sectors such as agriculture come under intense pressure due to erratic weather conditions and low funding, the government plans to reduce spending in coming years.
According to documents seen by the Nation, it is expected that development estimates for 2012/13 financial year will drop to Sh3 billion from Sh5.36 billion.
In order to open up the rural areas to technology and access to government services, Treasury allocated Sh210 million for setting up digital villages in each constituency.
In the last few years, the government has allocated funds in the building of ICT infrastructure especially fibre optic cables.
The government invested in the East Africa Marine System undersea fibre optic cable and the National Fibre Optic Backbone Infrastructure.
Under Vision 2030, ICT will be a major contributor to attaining the target of a 10 per cent GDP growth rate by 2012 -- it is currently three per cent -- and sustaining an average 10 per cent growth rate thereafter.
Business Process Outsourcing (BPO) has been identified as the flagship project for the sector.
The BPO has been targeted to increase its contribution to the country's GDP in the medium-term by $300 million, while creating more than 7,500 jobs for young professionals.
Two years ago, the government allocated Sh1 billion for buying of land for the site of Kenya's smart city or technology city.
Already land has been bought, and currently the government is searching for financiers and private partners to pull the project off the ground.
Situated 60km outside of Nairobi, Malili will be the site of Kenya's first digital city -- a city built for technology firms that will propel Kenya into the global ICT arena.
The Kenyan equivalent of Silicon Valley, the Malili Technopolis will host a BPO park, a financial district, a science park, a world-class convention centre, a mega mall and several hotels.
It will also have schools, hospitals and other facilities, and a high-speed train link to Jomo Kenyatta International Airport.
The park will be structured under the public-private sector partnerships model. Mr Kenyatta said the policy was to shift funds to priority areas to stimulate the economy.
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