The board, through the Government of Kenya has received credit from the International Development Association (IDA) to fund the initiative aimed at assisting industry players meet the cost of internet connectivity.
The first phase of capacity support ran from 1 July 2007 to February 2009. During this time, USD 508,937.29 out of a budgeted amount of USD 7 million was disbursed. It is predicted that the extension of this support will significantly increase the uptake of the subsidy by industry players and give the industry the necessary boost to grow and be able to compete on a global scale.
This subsidy, funded by the World Bank will be extended from 1 March 2009 to 31 March 2010. This is the final extension in response to the board's request on behalf of the industry with an aim to mitigate the high prices of internet access in the country which is reducing albeit slowly following the landing of the TEAMS and SEACOM fibre optic cables.
“Increasing Kenya's competitiveness in the global BPO sphere is vital for the growth of the industry. With the fibre optic cables now in place, Kenya has become a significant competitor in the global BPO space. We expect the cost of internet connectivity to drop significantly. But this will take some time.
This extension of bandwidth capacity support will help the industry reduce operating costs and thus increase global competitiveness in the short term,” said Paul Kukubo, CEO Kenya ICT Board.
