This is an increase from the Sh65.8 billion allocated in the 2010/11 financial year to Sh75.5 billion, according to budget estimates released by Treasury Thursday.

Although innovation and technology is hyped to be among future growth engines, allocations to the sector still remain low, as it's financial funding requirement is Sh104.2 billion.

Treasury allocated Sh210 million for setting up digital villages in each constituency.

During the 2009/10 financial year, the sector was allocated Sh28 billion for recurrent and Sh6.6 billion for development, against requirements of Sh51.8 billion and Sh38.9 billion.

According to Vision 2030, the shift is for the country to harness talent and other resources that will best position the country in the modern world economy.

Globally, a knowledge-based economy relies heavily on innovations to transform resources into products, processes and services.

The shift to emphasis on technology and innovation worldwide has created new and powerful industries in manufacturing, development of applications, service delivery and research and development, and as such, Kenya is positioning information and communication technology to play a key role in development.

With the widening digital gap, the need to develop local capacity for research and innovation and the demand for information for growth, requires that resource allocation be reviewed to reflect the new strategic policy direction.

"The sector receives about half of the actual funds it requires, with the big portion being allocated to personnel emolument.

There is need to review the ceilings upward to facilitate its growth."