The government has allocated Sh8.6 billion to support Kenya’s digital economy and creative industry in the 2026-27 financial year, a decline from the Sh12.7 billion set aside for the ICT sector in the previous budget.
Half of this year’s allocation in the sector, Sh4.3 billion, will go towards the World Bank-backed Kenya Digital Economy Acceleration Project.
The project, designed to expand broadband connectivity, enhance digital skills, and digitise Kenya’s government services, has seen its allocation bumped up by Sh600 million from Sh3.7 billion in the 2025/26 financial year.
“Digital connectivity and literacy are essential for education, healthcare, finance, markets, public services and emerging digital opportunities,” Treasury CS John Mbadi said in his budget speech on Thursday.
“Kenya’s creative economy comprising film, fashion, arts, media, digital content and design has become powerful for youth empowerment. To accelerate digital adoption and acceleration, I propose Sh8.6 billion to this sector.”
The government has also allocated Sh1.3 billion for the maintenance and rehabilitation of the national fibre optic backbone infrastructure and Sh528 million for maintenance and rehabilitation of last-mile county connectivity.
Other allocations include Sh400 million for the establishment of digital hubs, Sh382 million for digital superhighway cybersecurity, Sh309 million for government shared services and Sh455 million for ICT infrastructure management.
The latest allocations come as the government continues to push its Digital Superhighway agenda aimed at expanding broadband access and digitising public services and increasing digital inclusion across the country.
Part of the plan is the government’s bid to lay 100,000 kilometres of national fibre optic cable and build community ‘digital hubs’ to provide free or affordable internet in a bid to enable the youth to engage in online work.
Still, this year’s ICT allocation is lower than the Sh12.7 billion approved in the 2025/26 Budget.
In the current financial year, the government allocated Sh3.7 billion for the Kenya Digital Economy Acceleration Project and Sh3.1 billion for data centre and smart city facilities at Konza Technopolis.
The 2025/26 Budget also set aside Sh2.3 billion for the construction of the Kenya Advanced Institute of Science and Technology at the Konza Technopolis, and Sh1.4 billion for digital superhighway initiatives, government shared services and digital hubs.
It also set aside Sh1 billion for maintenance and rehabilitation of connectivity networks, and Sh700 million for e-government procurement systems. Mr Mbadi did not indicate the allocation to the Konza Technopolis project this year.
