The government has proposed an allocation of Sh8.6 billion to accelerate digital adoption and inclusion as part of efforts to position Kenya as a competitive player in the Fourth Industrial Revolution.
Unveiling the 2026/2027 National Budget in the National Assembly on Thursday, National Treasury Cabinet Secretary John Mbadi said digital transformation had become a critical pillar of economic growth and national competitiveness.
Mbadi noted that technology was reshaping economies across the globe and that Kenya must continue investing in digital infrastructure and innovation to unlock new opportunities for its citizens.
“Digital transformation is a strategic enabler for competitiveness in the Fourth Industrial Revolution,” Mbadi said.
He emphasised that digital connectivity and literacy were no longer optional but essential for participation in modern society.
“Digital connectivity and literacy are essential for education, healthcare, finance, markets, public services and emerging digital opportunities,” he told lawmakers.
The Treasury Cabinet Secretary further highlighted the growing importance of Kenya’s creative economy, saying the sector had emerged as a major source of employment and innovation, particularly among young people.
“Kenyans' creative economy encompassing film, music, fashion, media, arts, digital content and design has become a powerful engine for youth empowerment,” Mbadi said.
“Investing in the creative industry enhances cultural exports and drives innovation,” he added.
To support the government's digital transformation agenda, Mbadi proposed Sh8.6 billion in funding for various programmes aimed at expanding connectivity, strengthening cybersecurity and improving access to digital services.
The largest allocation, Sh4.3 billion, has been earmarked for the Kenya Digital Economy Acceleration Project, which seeks to expand access to digital technologies and increase participation in the digital economy.
Another Sh1.3 billion has been proposed for the maintenance and rehabilitation of the National Optic Fibre Backbone Infrastructure, a key component in enhancing internet connectivity across the country.
To improve connectivity at the county level, the government has set aside Sh528 million for the rehabilitation and maintenance of Last Mile County Connectivity infrastructure. The programme is expected to bridge digital gaps and ensure more communities have access to reliable internet services.
Mbadi also proposed Sh309 million for Government Shared Services to improve efficiency in public service delivery through integrated digital platforms.
Recognising the growing threat posed by cybercrime, the government has allocated Sh382 million for the Digital Superhighway Cyber Security Programme to strengthen the country's digital resilience and safeguard critical information systems.
In addition, Sh400 million has been earmarked for the establishment of digital hubs across the country, a move expected to provide young innovators, entrepreneurs and technology enthusiasts with spaces to develop skills and access digital opportunities.
A further Sh455 million will go towards ICT infrastructure maintenance to ensure the reliability and sustainability of government technology systems.
The proposed investments underscore the government's commitment to leveraging technology as a driver of economic transformation, innovation and job creation. If approved by Parliament, the funding is expected to accelerate Kenya's transition into a digitally enabled economy while creating opportunities for millions of citizens, especially the youth, to participate in emerging sectors powered by technology.
