Kenya has positioned itself as a continental leader in digital technology on the back of the government rolling out an ambitious agenda to transform the economy through ICT infrastructure, smart cities and grassroots digital access.

The ICT sector contributes an estimated nine to 10 per cent to Kenya’s gross domestic product (GDP) and continues to grow as more services move online and new digital businesses emerge, diversifying the economy beyond its traditional reliance on agriculture.

M-Pesa for instance, transformed Kenya into a global mobile money leader that enables billions of shillings in daily transactions. Digital lending platforms give small traders instant credit, stimulating grassroots business activity and bringing millions of unbanked citizens into the formal financial system. E-commerce platforms allow Kenyan businesses to sell beyond local markets, while digital payment systems make cross-border trade within the East African Community faster and more cost-efficient.

In agriculture, digital platforms provide farmers with real-time market prices, weather forecasts, and mobile-based crop insurance, increasing incomes and reducing food supply shocks that affect inflation.

Kenya’s digital infrastructure has also attracted global giants including Google, Microsoft, IBM, and Huawei, who have established regional offices or innovation hubs in the country, bringing capital, technology transfer, and skills that ripple across the wider economy.

Kenya’s Digital Agenda is a multi-pronged national strategy focused on infrastructure, digital skills, e-government services and innovation to drive a knowledge-based economy. This is meant to spur economic growth and create millions of jobs for the youths in the country.

At the centre of this transformation is Konza Technopolis, a 5,000-acre smart city project and the crown jewel of the digital transformation agenda designed to be Africa’s Silicon Savannah.

Located approximately 60 kilometres southeast of Nairobi, Konza Technopolis is Kenya’s flagship project in ICT. Covering 5,000 acres, Konza is being built as a fully planned smart city housing tech companies and Business Process Outsourcing firms, research institutions and universities, innovation centres and incubation hubs, and world-class ICT infrastructure supported by green energy systems.

In terms of economic contributions, Konza is projected to create over 200,000 direct and indirect jobs, making it one of the single largest employment generators in the country’s history. On investment front, the city is designed to attract global technology firms seeking to establish their headquarters in Africa, positioning Kenya as the preferred destination for foreign direct investment on the continent.

Konza also places Kenya competitively in the global Business Process Outsourcing market, which is worth billions of dollars annually. It allows the country to earn significantly from providing services to international clients. The research institutions and universities within the city will drive innovation by generating patents and technology solutions that can be exported globally, adding intellectual capital to Kenya’s economic output.

Beyond the city boundaries, a thriving ripple economy will emerge as suppliers, transport providers, food chains and service businesses grow around Konza, spreading economic benefit to surrounding communities. Ultimately, Konza signals to the world that Kenya is open, tech-ready, and globally competitive, enhancing the country’s brand and attracting investors well beyond the technology sector alone.

The digital hubs and Konza Technopolis together form a deliberate two-tier economic strategy. The digital hubs build the foundation, creating digital literacy and opportunity at constituency level and ensuring every Kenyan can participate in the digital economy regardless of location or income.

A young person trained at a digital hub in Kisumu gains skills that could lead them to work at a firm headquartered at Konza or launch their own tech start-up that scales nationally.

Kenya intends to construct 1,450 digital hubs nationwide, establishing at least one hub in every single ward across the country. Additionally, the government is setting up 47 centres of ICT Excellence (one in each county) to bridge the digital divide and spur innovation.

The Kenyan government has undertaken several flagship initiatives to drive digital transformation across all sectors.

The digital superhighway involves rolling out 100,000 kilometres of fibre optic cable to expand internet connectivity nationwide, ensuring that both urban and rural areas are connected to high-speed internet.

Through the eCitizen portal, citizens can access government services online including passport applications, business registration, and land searches, eliminating bureaucratic delays, among other services and reduce the waiting time and by extension, reduce corruption.

These hubs serve as community technology centres offering free or subsidized internet access, computers and digital devices for public use, training in coding, online work, graphic design and digital entrepreneurship, as well as collaborative spaces for start-ups and young entrepreneurs.

The digital hubs are designed to decentralize opportunity. A young person in Kisumu, Turkana, or Kwale gets the same digital access as someone in Nairobi. 

This directly stimulates local economies as trained youth earn from online freelancing and reinvest in their communities. Micro, small and medium-sized enterprises (MSMEs) use the hubs to market products, manage accounts, and access e-commerce platforms.

Most critically, the hubs bridge the urban-rural digital divide, ensuring that Kenya’s digital growth is inclusive and nationally spread rather than concentrated in the capital. But some young people in the country are already benefitting from this digital transformation.

In Kisumu, the business landscape is undergoing a quiet but powerful revolution due to the advent of technology. Where people once relied heavily on physical shops, foot traffic, and word-of-mouth advertising is now increasingly driven by smartphones, social media platforms, and digital payment systems. From Thrift Clothing Businesses promoting their stock on TikTok to individuals earning income through online content engagement, digital business is reshaping how people earn a living in the lakeside city.

At the centre of this transformation is Lucky Dawg Thrift Shop, owned by Jeckonia Omondi Ochieng, popularly known as Sanchez. The shop represents a growing trend among young entrepreneurs who are blending traditional retail with digital marketing to expand their reach beyond Kisumu’s streets.

Lucky Dawg Thrift Shop like many second-hand clothes businesses in Kisumu, started as a physical store serving walk-in customers looking for affordable fashion. However, the competition in the thrift market and changing customer behaviour have pushed the business to embrace online platforms as a key marketing tool.

Today, the shop uses social media platforms such as TikTok, Instagram and WhatsApp to showcase new arrivals, model outfits, and engage with customers. Short video clips displaying clothing collections, styling ideas, and price drops are used to attract attention and create urgency among buyers. This has increased the sales of the business a hundredfold.

According to Sanchez, the shift to digital marketing has not only increased visibility but also expanded the customer base beyond Kisumu.

“Sometimes we get orders from Nairobi, Mombasa, and even outside Kenya just because someone saw a TikTok video. Social media has become our main shop window,” he explain.

The use of TikTok in particular has proven effective due to its fast-paced visual format, allowing thrift businesses to reach younger audiences who are highly responsive to fashion trends and online content.

Beyond retail, Kisumu is also witnessing a rise in individuals earning directly through online platforms. One such example is Bradley Onyango, a digital content worker who generates income by promoting products and engaging audiences through social media.

Bradley’s work involves advertising different products on WhatsApp and other platforms, where payment is sometimes based on engagement metrics such as views, clicks, or shares. In this model, income is tied to digital visibility – meaning the more attention a post receives, the more the creator earns.

For Bradley, the digital space has created an opportunity where traditional employment barriers are less restrictive.

“You don’t need a shop or office to make money anymore. If you understand how to reach people online, you can earn from anywhere,” he says. His experience reflects a growing trend among young people in Kisumu who are turning smartphones into income-generating tools through content creation, affiliate marketing, and digital advertising.

• A Tell Media / KNA report / By Mabel Keya-Shikuku and Dickens Joseph