An exploratory study on the determinants of internet access penetration in Kenya
Date
2011-05
Authors
Matimu, Nancy Waithira
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
This study was undertaken using primary and secondary methods to provide
gainful insight on those factors that have shaped Internet Access Penetration
in Kenya and hence make conclusions on the determinants thereof. Internet
Access is viewed as a key enabler for operational efficiency, economic
growth, and knowledge dissemination world over. It has been the key driver
for eliminating cross-border barriers and a catalyst for reducing knowledge
asymmetry through the global village concept realization.
The core objective was to establish the determinants of Internet Access in
Kenya and how they have influenced market penetration with a view to
providing an informed direction on priority areas of contribution and
consideration by the academic community, policy makers and the business
community respectively in achieving universal access objectives and business
growth and profitability objectives. These determinants were organized along
the following key themes; socioeconomic determinants (affordability, income
levels, demographics, literacy levels), infrastructure (mobile subscriptions,
electricity consumption and ICT goods imports) and regulatory factors
(regulatory policy and competition). Other factors explored included speed of
access, security and locally relevant content availability.
The findings of the study showed that a strong positive linear relationship
exists between number of Internet users and income levels, 15-65 years age
set population, literacy levels, mobile subscriptions, electricity consumption
and competition . They also showed that a positive linear relationship also
exists between Internet users and ICT goods imports albeit weak. Affordability
(price of Internet access) was found to have a strong negative linear
relationship with the number of Internet users. The findings which were
subjected to descriptive and inferential analysis concluded that the key factors
that determine Internet access penetration in Kenya include income levels,
affordability, mobile subscriptions and efficient competition arising from
effective regulation. A regression model with a high predictive capability was
also developed which suggests that 95% of Internet access penetration can
be explained by income levels and mobile subscriptions.
Description
A dissertation Submitted in Partial fulfillment of the requirements for the degree of Masters
in Business Administration
Keywords
Internet access, ICT, Kenya