ICT imports rise signal data centre, AI investment wave



Kenya’s imports of information and communication technology (ICT) equipment surged to a record Sh12.45 billion in April, signalling an acceleration in investments in data centres, telecommunications networks and digital infrastructure.

Latest data from the Kenya National Bureau of Statistics (KNBS) shows the value of ICT imports more than doubled from Sh5.23 billion in March, marking the highest monthly import bill since the statistical agency began publishing the series.

At the same time, exports of ICT equipment nearly tripled to Sh438.26 million from Sh156.02 million in March, posting the strongest monthly performance since December 2024 when exports stood at Sh548.92 million.

According to KNBS, the import surge was driven largely by purchases of automatic data processing machines and storage units, which jumped almost fourfold to Sh4.97 billion, up from Sh1.31 billion a month earlier.

Imports of telecommunications equipment also more than doubled to Sh6.57 billion from Sh2.56 billion in March.

“This growth was largely driven by a threefold increase in the import value of automatic data processing machines and storage units, which rose from Sh1.3 billion to Sh5 billion, alongside a twofold increase in imports of telecommunications equipment from Sh2.6 billion to Sh6.6 billion,” wrote the data agency.

The rise points to growing demand for servers, storage equipment, networking devices, and other digital infrastructure components that underpin cloud computing, artificial intelligence (AI) and internet services.

Automatic data processing machines largely refer to servers, enterprise computers, data storage systems and related equipment used in data centres and large corporate networks.

Telecommunications equipment, on the other hand, includes components such as network switches, routers, fiber transmission equipment, mobile base stations, and other infrastructure used by telecom operators and internet providers.

The increase in the value of equipment imported comes as Kenya positions itself as East Africa’s digital infrastructure hub amid rising investments in data centres and cloud computing facilities.

The Communications Authority of Kenya (CA) recently formally recognised commercial data centres as a regulated telecommunications activity, a move seen as providing greater regulatory certainty to investors.

The policy change came at a time when developers are pouring billions of shillings into data centre projects targeting AI and cloud services.

India’s Airtel, through its subsidiary Nxtra, is building East Africa’s largest data centre in Nairobi with planned investments estimated at around Sh19 billion. The facility is expected to support growing demand for cloud computing, enterprise storage, and AI services across East and Central Africa.

Kenya is also witnessing expansion by other operators, including iXAfrica, Africa Data Centres and iColo, as global technology firms search for regional digital infrastructure locations.

The government’s own projections suggest the country is increasingly becoming a preferred destination for data centres and AI infrastructure because of its renewable energy potential and strategic location.

The rise in telecommunications equipment imports also points to continued spending by mobile operators and internet service providers as they expand network capacity.

Telecom operators across Africa have been investing heavily in fiber infrastructure, 4G and 5G upgrades, as well as edge computing facilities to cope with rising data demand and AI applications.

The investments are increasingly being driven by cloud services, streaming platforms, and AI-powered applications that require substantially larger computing and storage capabilities than traditional internet services.

Kenya remains almost entirely reliant on imports for servers, storage systems, networking devices and telecommunications infrastructure, meaning that every major expansion in digital infrastructure tends to produce sharp spikes in import bills.

The rise in the value of related exports indicates that Kenya has increasingly emerged as a distribution and logistics centre for technology products entering East and Central Africa.

The categories include re-exports of imported equipment, refurbished devices, network components, and specialised electronic equipment shipped to regional markets.

Several multinational technology companies use Nairobi as a regional base for servicing neighbouring markets. The massive gap between imports and exports, however, underlines a structural weakness in Kenya’s digital economy.

For every shilling earned from exporting ICT equipment in April, for instance, the country imported nearly Sh28 worth of technology products.

Despite ambitions to build a digital economy, Kenya remains overwhelmingly a consumer and importer of technology hardware.



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