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Wednesday, January 26, 2011

Kenya’s astonishing internet growth: Six key trends to watch

For many years, Kenya was known as fertile ground for agriculture, but increasingly it’s becoming known as a place where technology companies can grow and flourish. Many new technology players from across Africa have chosen Kenya as a base to serve their East African interests, to expand and launch new products and services into this dynamic regional economy.

1. Online classifieds
MIH Internet Africa and the Bid or Buy group are both set to go head-to-head for the classifieds market in Kenya, and in other emerging African markets across the continent.

After the launch of its mobile directory business, Mocality, MIH has been putting resources towards Dealfish, hiring and building the team to run its operations in Kenya, having made its ambitions for the classifieds market clear.

The online classifieds market is huge in South Africa, and with more players in the market, the prospect of success for the rest of Africa is an opportunity worth noting and capitalising on.

For now, it has been mainly AdWords and targeted Facebook advertising, but the stage is set for the two to go head-to-head for this market as the new year approaches against local and international players including Uzanunua, Craigslist Kenya, Pigia.me, Sambazasoko, Dudubaya, PataUza among others. After what has been seen from mobile business directory Mocality, MIH might have the benefit of an established crowd-sourcing scaling model for Dealfish. This same model in Mocality’s case saw the company make a radical jump from 15 000 Nairobi businesses to more than 60 000. Mocality have recently expanded the model to the coastal city of Mombasa.

2. MXit
Meanwhile South African instant messaging network MXit has been on the ground in Kenya setting up its presence and exploring partnerships. The company has been evangelising to developers since it recently created its API and marketing the product. Locally, it faces competition from Nimbuzz, South Africa-based 2Go and Mig33. MXit’s active approach has seen it activate the product on the ground and provide incentives to the local market by seeding the product through guerilla marketing.

3. GroupOn
The GroupOn model in Kenya is gaining traction with the stakes getting higher as the first players explore the group buying model. Players include SokoPal, Rupu, and Twangoo-affiliated Zetu. The market is rapidly heating up as it will be the player that efficiently adapts the right model for the Kenyan market that has the best shot at success.

Google has also raised the stakes with the launch of its question and answer platform Baraza. This follows on from its SMS-powered classifieds marketplace Google Trader (in Uganda) which also launched a week ago in Ghana. While initially testing Baraza in a handful of countries, the platform is adapted from Ejabat, Google’s Arabic question and answer service.

It’s obvious to see Google is also raising its profile and has made clear its intentions to dominate more than just search by launching products to make the local internet relevant for the African market. Baraza goes head-to-head with existing Kenyan Q&A start-up Majibu.com. In another interesting development, Kenya and Ghana are some of the only countries in the world where Google advertises on Facebook to find the local market. Google serves Facebook ads to advertise Gmail, Google Chrome and Google Baraza as well as its Google Free SMS feature to the 1 000 000 Kenyans on Facebook.

4. Investment
The web start-up sector has been attracting international attention to Kenya, and to Nairobi in particular. Mozilla’s own Global Community Manager, William Quiviger, made a case for why Nairobi deserves to be crowned Africa’s ICT Innovation hub. Foreign investment is certainly taking notice of Nairobi and becoming readily available to the market.

Nairobi recently hosted IPO48, a start-up bootcamp geared around turning ideas into businesses in 48 hours with Ksh. 1 000 000 (US$12 500) in investment for the top start-ups; modeled on Garage48, an Estonian-borne concept in in partnership with HumanIPO.com which connects European investors with African start-ups and founders. IPO48 brought together over 20 start-ups in a race to prototype and pitch their ideas.

The winner, M-Farm, a mobile web & SMS-based app for farmers was put together by all-girl coder group AkiraChix. The runners up included geo-location cab service app TaxiMatch, Groupon-alike MyShillings and school note sharing/selling platform HizoNotes.

Over the past few months, the launch of platforms such as HumanIPO, AfricaPace and the relaunched VC4Africa.biz all reiterate that there are those who see investment opportunities for financing. Access to capital has continued to be a challenge for those in the Kenyan market and the gap in angel investing and other fundraising avenues is a huge gap in this market.

Silicon Valley is certainly taking note of Kenya and investors have been visiting and doing research about entering as well as partnering and supporting existing players in the market. I/O ventures makes a trip to Nairobi on the 14th and 15th of December being one such example.

This December, Nokia concluded its first Open Innovation Africa Summit held in Kenya, which brought 200 leading thinkers from across the globe into Kenya to analyse and derive the best way forward for open innovation for the continent and promote sustainable solutions for education, healthcare, mobile and ecosystems for innovation.

The Summit’s outcomes took local ideas from an ideation competition online to Naivasha, where the conference took place to act on these ideas in the context of the continent.

5. Mobile Money
Mobile money is another key battlefied in the East African tech scene. The race between players continues to pick up pace as telecommunications provider Orange Kenya launched Orange Money in partnership with Equity Bank, the same bank that works on Safaricom’s M-Kesho mobile banking product powered by M-Pesa and Essar Telecom’s yuCash mobile money product.

Orange has chosen to differentiate its offering by targeting a different market segment and offering a debit card to accompany the mobile banking and mobile money transfer product. Safaricom’s M-Pesa numbers continue to grow steadily as they recently crossed the 13.5- million mark, which accounts for over 80% of Safaricom’s 17-million subscribers.

6. iHub
The nexus for all things innovation in Kenya and Africa at the moment has to be the iHub. It’s hard not to point to Kenya right now and not see how this open space is at the forefront of innovation within the technology space. From hosting events with leading thought leaders from across the world to hosting their first set of Green Members — 100 of Nairobi’s most promising developers, creatives and business technologists. And from February next year, the launch of the Mobile Apps Lab will further diversify the iHub’s range after it successfully won the bid to host the infoDev-funded regional mobile applications lab.

The Kenyan market continues to grow and projections look set for Kenya to leapfrog other established economies across Africa and become a centre of African-driven innovation.

This year has been eventful, but next year is gearing up to be a tipping point for technology, mobile and innovation in Kenya.

Hold on to your hats, ladies and gentlemen.

By: Mark Kaigwa Read More

What Kenyans do online - Digital Life study

60% of Kenya's online users access the internet on their mobile phones. This is according to Digital Life, an online activities and behaviour study that was released on Thursday, 2 December 2010 in Nairobi by TNS Research International. The study was conducted in several Kenya cities; Nairobi, Mombasa and Kisumu. Eight hundred people were interviewed; 400 online and 400 face-to-face.

The study also revealed that 62% of Kenya's users access the internet on a personal computer - 29% from home and 33% at work respectively, and 41% of users access the internet from a cyber cafe. The Digital Life study also showed that although email access remains the top online activity in Kenya and the sub-Saharan region, usage of the internet for social media and knowledge and education access is growing steadily.

According to the study, the online development path in Kenya is radically different from many other markets as Kenya has higher mobile compared to developed markets. In the last two years, internet usage in Kenya went from 9.5% in 2009 to 20% in 2010. According to TNS Research International, while digital media investments in developed markets will yield strong return on investment, emerging markets require cross-media strategies to complement digital media.

"This shows high potential for growth in the mobile internet business platform in Kenya. However, this growth has to be spurred by seamless cross-media strategies to ensure maximum return on investment for any digital media investment in the country," said Melissa Baker, TNS Research International CEO East Africa.

For business people or people planning to invest in Kenya, digital is an emerging media.

"Prepare for an explosion of activity as quality access opens up latent demand, it will become more representative of the population, and is being driven by mobile access. Ensure mobile part of your digital engagement strategy. Go mobile first!" advices Baker.

Engaging consumers in the digital arena is not the same as traditional marketing and broadcast media. "It is much more complex. Understand different segments using the internet and engage with them according to their needs," she says.

What are Kenyans doing online?


•Connecting and sharing with others online, uploading pictures to a photo sharing site or internet dating

•Keeping up to date with current affairs, sports, culture and the weather

•Browsing for things to buy online or offline; eg. consumer reviews, websites, search engines

•Email - personal email account. Checking inbox, writing and composing email messages

•Watching video, listening to music or radio streaming or watching on-demand TV programs

•Sourcing general information and learning online; 'googling' online encyclopaedias and self-educating online

Frome the various activities of users, email, social, multimedia, news, knowledge and personal interest are the ways to engage consumers via mobile. The study also reveals that brands are a subject of conversation in social networks; expect the numbers of inactive consumers to drop as quality of access improves.

In Kenya, social networkers (91%) are actively talking about brands in social media. Kenyans engaging with brands are looking for information about them meaning for Kenyan online users, brand building is not just about having a website.

Popular sites in Kenya

Email - Google, Yahoo, Facebook, MSN, Daily Nation, YouTube, Safaricom, Standardmedia.co.ke, Skype, My African Career

Social networking - Facebook, Google, Yahoo, YouTube, Twitter, Skype, Wikipedia, Nation Media, Daily Nation, Tagged

Knowledge & Education - Google, Wikipedia, Yahoo, Daily Nation, Nation Media, Standardmedia.co.ke, Facebook, YouTube, eHow, Career Point Kenya

News/sport/weather - Google, BBC Online, Standardmedia.co.ke, Daily Nation, Nation Media, Yahoo, CNN Interactive, Skysports, ESPN, MSN

Multimedia entertainment - YouTube, Google, Capital FM, Facebook, Yahoo, Kenyanlyrics, Myspace, Wikipedia, Daily Nation, Nation Media

Personal interest - Google, Facebook, Yahoo, Wikipedia, YouTube, Capital FM, BrighterMonday, BBC Online, Amazon, Twitter


Digital lifestyles

The study categorised the lifestyles of online Kenyan users into six segments:

Influencers - The internet is an integral part of their life. They are young and big mobile internet users accessing it everywhere, all of the time. They blog and are passionate social networkers who want to make sure as many people as possible hear their online voice.

Knowledge-seekers - Use the internet to gain knowledge, information and to educate themselves about the world. They are not big users of social networks; like to hear from like-minded people especially to help them in making purchase decisions. They are very interested in the latest trends.

Communicators - They love talking and expressing themselves; face-to-face, on a fixed line, mobile or on social networking sites, instant messaging or just emailing people. They tend to be smartphone users and connect online from their mobile, at home, at work or at college.

Networkers - The internet is important for them to establish and maintain relationships. They have a busy life (professional and personal), they use things like social networking to keep in touch with people they wouldn't have time to otherwise. They are big home internet user and very open to talking to brands and looking for promotions.

Aspirers - They look to create a personal space online. They are very new to the internet and access via mobile and internet cafes but somewhat from home. They are not doing a great deal at the moment online but are desperate to do more of everything, especially from a mobile device.

Functionals - To them, the internet is a functional tool. They don't want to express themselves online. They like emailing, checking the news, sport and weather and online shopping. They are mostly not interested in running their social life online and are worried about data privacy and security. They are older and have been using the internet for a long time.

According to TNS, most internet users in sub-Saharan Africa are aspirers and communicators.

By: Carole Kimutai

Facebook group aims to tackle fake medicines in Kenya

Kenya's pharmacy and poisons board has set up a Facebook account for people to report pharmacists who give them fake drugs. Kenyans can use the social networking site to report adverse reactions to drugs as well as suspected counterfeit drugs and unregistered pharmacies.

The initiative was launched early last week by Medical Services permanent secretary Prof James Ole Kiyiapi in a bid to regulate the industry and protect the public. Prof Kiyiapi said the move would help bring a change in attitude especially amongst consumers.

The Kenyan government appears to be embracing the use of new media. Two weeks ago during the Pan Africa Media Conference, President Mwai Kibaki proposed using new media to fight corruption and nepotism and address environmental challenges.

Research reveals changes in online behaviour

Digital Life, a global research project into people's online activities and behaviour has revealed significant findings as well as indicators for the future of the world's online behaviour. The research covered 88% of the world's online population through 50,000 interviews with consumers in 46 countries.
From the research, mature markets are being left behind online, as Kenya and other emerging markets become more active. Online consumers in rapid growth markets have overtaken mature markets in terms of engaging with digital activities. When looking at behaviour online, rapid growth markets such as Egypt (56%), China (54%) and Kenya (51%) have much higher levels of digital engagement than mature markets such as Japan (20%), Denmark (25%) or Finland (26%). This is despite mature markets usually having a more advanced internet infrastructure.

Increase in mobile use

Data also shows an increase in mobile use as consumers seek greater access to social networking on the go and that online is now the media of choice. Activities such as blogging and social networking are gaining momentum at huge speed in rapid growth markets. The research shows four out of five online users in China (88%) and over half of those in Kenya (55%), Brazil (51%) and Tanzania (50%) have written their own blog or forum entry, compared to only 32% in the US.

Growth in social networking is attributed to the transition from PC to mobile. Mobile users spend on average 3.1 hours per week on social networking sites compared to just 2.2 hours on email. The drive to mobile is driven by the increased need for instant gratification and the ability of social networks to offer multiple messaging formats, including the instant message or update function.

Online photo-sharing

The internet has also become the default option for photo sharing among online users in rapid growth markets, particularly in Asia and sub-Saharan Africa. The number of online consumers who have ever uploaded photos to social networks or photo sharing sites is 92% in Thailand, 88% in Malaysia, 87% in Vietnam, 74% in Kenya and 72% in Tanzania whilst developed markets are more conservative. Globally, people who have online access have digital sources as their number one media channel. 61% of online users use the internet daily against 54% for TV, 36% for radio, and 32% for newspapers.

When looking at how the digital landscape will change in the future, the research shows that consumers expect their use of social networking on mobiles to increase more than use through PC. In Kenya, for example, 78% of online consumers expect their use of social networking on a PC to increase in the next 12 months compared to 84% who will be looking to their mobile to increase usage. In Uganda the figures are 66% and 74% respectively and in Tanzania 71% and 69%.

Average time spent online

One further finding of the study showed that online consumers are, on average, spending more time on social networking sites such as Facebook and LinkedIn than on email, despite the former only becoming mainstream in many markets over the last few years. The heaviest users of social networking are in Malaysia (9 hours per week), Russia (8.1 hours per week) and Turkey (7.7 hours per week). Kenya (6.5 hours per week) is closely behind the heaviest users while Uganda (1.5 hours per week) and Tanzania (1.6 hours per week) are currently amongst the lowest users.

By: Carol Kimutai

Kenya accounts for 7% of Africa mobile industry

Kenya mobile telephony industry now accounts for 7% of mobile phone subscribers in sub-Saharan Africa. Kenya had 17.4 million mobile phone subscribers by end of June 2009, translating to 45.7% penetration.
The International Telecommunications Union (ITU) report says Kenya has the third highest number of subscribers, after Nigeria and South Africa that respectively account for 26% and 19% of mobile cellular subscriptions in sub-Saharan Africa.

According to another report by Pyramid Research, mobile penetration in Kenya's telecom market will grow by 95% over the next five years. "Kenya shows impressive growth rates with significant opportunity," notes Dearbhla McHenry, analyst at Pyramid Research and author of the report. "By the end of 2008, Kenya had more than 15 million mobile subscribers, with a mobile penetration rate of 39%. The subscriber base is expected to rise to 29.28 million, or 66.7% penetration, by year-end 2013."

Total revenue of Kenya's telecom market is forecast to grow by 42% from US$1.39 billion in 2008 to US$1.98 billion by 2013, with 78% of the total revenue to be generated by the mobile sector.

"Mobile data will be the telecom sector's fastest-growing revenue stream, increasing in revenue from US$62 million in 2008 to US$224 million in 2013, partly due to the launch of 3G services but also to the explosive growth of low-tech, low-margin mobile data services, particularly mobile money transfers," says McHenry.

Both end-users and industry players still face significant challenges in increasing ICT uptake levels.

"These include the lack of full liberalisation of markets and the limited availability of infrastructure. In addition, prices for ICT services remain very high, compared to income levels, and broadband Internet services are out of the reach of most Africans," said ITU in the report.

By: Titus Kaloki

Kenyan company launches social media monitor

Globetrack International (GTI), a Kenyan media monitoring company, has launched a social media monitoring service. Social media platforms, including Facebook, Twitter, LinkedIn, YouTube, MySpace and others, have become very popular in Kenya.
The service plans to cover 150,000,000 blogs, 25,000 user forums/message boards and review sites, 95% of video content and more than 450 video sites, 25,000 online mainstream media, micromedia, Facebook, and Linkedin.

Analysing direct feedback

"Even though it is often regarded as a waste of time in many companies, social media is the single most powerful source for direct feedback on how the public perceives a brand, organisation or person," says GTI MD, Esther Kagiri.

Social media tracking will be the core objective of GTI; helping clients make sense of the information in the public domain.

"Access to information is no longer enough, getting this information in condensed, timely, accurate and palatable portions is a must for every corporation that has future plans," said Kagiri.

Facebook has 500 million users globally with a million users in Kenya which is currently ranked the eight largest user-base in Africa.

Plans to track and monitor

GTI will employ fingerprinting and content matching technology that automatically tracks and monitors advertisements, news clips and mentions in realtime whilst eliminating manual reviews and errors. GTI has also employed an off-air broadcast monitoring solution for off-air asset monitoring. Deployed in thousands of channels worldwide, it incorporates realtime, multi-channel monitoring, streaming, search, retrieval, publishing and archiving.

Since it also targets the players in the music industry, GTI says it is able to track royalty apportioning, accuracy and timing that have taunted music and filmmakers as well as regulators in the region.

By: Carole Kimutai

Friday, January 14, 2011

APC (Association for Progressive Communication)is hiring: Project coordinator, “Internet rights are human rights”

The Association for Progressive Communication (APC)is hiring: Project coordinator

The successful candidate will join the APC policy programme to lead APC’s human rights and internet rights work through coordination of our “Internet rights are human rights” project. The candidate will have a strong background in the human rights and internet policy fields and have significant expertise in advocacy, capacity building and strategic communications. This is a full-time senior project manager position key to APC as we seek to strengthen our position internationally in the area of human rights in the context of the internet and information and communication policy.

The project coordinator will:

A) Coordinate the overall implementation of the project “Internet rights are human rights: Monitoring and defending freedom of expression and association on the internet”.
Deliverables include:

•in-depth research and analysis of the trends, violations and impacts on freedom of expression on the internet at national levels;
•development of various information products, awareness raising and global and national policy advocacy in specialised spaces and processes;
•building capacity and support for rights defenders (particularly women’s human rights defenders);
•building sustainable networks of human rights defence advocates;
•designing and implementing a campaign that promote understanding of ‘internet rights’ as human rights and the importance of the internet as a tool for furthering human rights

B) Manage and supervise contracts with project partners.

C) Manage and supervise the “Internet rights are human rights!” project team.

D) Provide strategic vision and leadership for developing and implementing APC´s human rights and internet rights advocacy and campaigning, capacity building, networking and partnership building, and communication strategies in partnership with APC team.

E) Represent the APC and build strategic partnerships in the field. This includes frequent international travel.

F) Participate actively in the APC staff team and with members.

The person we are looking for will have:

•Extensive knowledge of human rights and internet policy and regulation
•Sound academic qualifications in a related area
•Experience in policy advocacy work in this area
•Enthusiasm for networking and be an inclusive network builder
•The ability to plan and think strategically
•Experience in project management (at least three years) including people and budget management
•Experience and background in civil society networking
•Knowledge and contacts with human rights organisations, human rights defenders, democracy activists and internet rights activists is an advantage

Other requirements:

•Excellent English writing and oral communication skills, including public speaking experience
•Good writing skills and experience in writing reports
•Able to work in a team and under pressure
•Able to work independently and to manage people mainly via online communications
•Willing to travel frequently
•Competent computer and internet skills and experience in working in an online environment
•Ability to communicate in Spanish and/or French is a distinct advantage

Remuneration and duration of contract:
This is a full time contract for an initial twelve-month period (renewable depending on performance and availability of funding). Remuneration is based on APC’s salary scale for the position for a high-level project manager. Short-listed candidates will receive specific information on the salary range on request.

Location:
The incumbent can work from anywhere in the world provided they have excellent internet access. APC provides an equipment allowance but require staff to use their own computers. Extensive international and regional travel will be required. APC is a truly virtual organisation and does not have a physical headquarters. We do our work online. For this position we particularly encourage candidates from the global South.

How to apply:
Please send a CV and a covering letter in English that illustrates your interest in the position.
You should include the following information:

•Your experience with human rights and/or internet rights
•Your experience in advocacy and capacity building
•Your experience in networking and partnership building
•Your experience in designing, developing and leading campaigns targeting diverse constituencies
•Your background in project management and team coordination, specifically in an international and/or online context
•Your experience or expectations around building the capacity of activists for whom sometimes the subject area will be relatively new
•Your experience around building interaction between human rights actors and actors involved in the access and use of internet for social justice and
•Your ICT policy experience
•Your computer skills
•Where you live
•Languages you speak and write
•Other information you think might be of importance to our assessment of your application
•Three references: names, relationship, contact details; at least one of these should be related to project or campaign that you have managed.

Please send this information via email with ‘Internet rights are human rights project coordinator’ in the subject line to: jobs@apc.org by January 14 2011. Please note only short-listed candidates will be contacted.

Radio promotes Dialogue and Accountability between people in regions where the ICC is investigating the serious crimes against Humanity. Could this be applicable to Kenya?

Launched in 2008, the Interactive Radio for Justice (IRFJ) http://www.irfj.org/ works to encourage dialogue between people in regions where the International Criminal Court (ICC) is investigating the serious crimes (genocide, crimes against humanity and war crimes) and the national and international authorities responsible for rendering justice to them. Wanda Hall, IRfJ’s director, is committed to helping the goal of international justice become a reality for the people whom it is intended to benefit.

The radio project started in the Ituri region of the Democratic Republic of Congo (DRC), where the ICC began an investigation in 2004. Later the IRfJ launched in the Central African Republic and today covers the Kivus region of DRC as well.
Interactive Radio for Justice travels into communities, records their questions and finds the most appropriate authorities to answer them. Then the questions and answers are collated in a program and played back to the community who gather around a radio set wherever available to listen. “This makes it seem like they are talking to each other,” explained Hall. Read more here

Moving on to Kenya, the prosecutor at the ICC has named six high-profile Kenyans, whom he accuses of being behind the violence that followed the disputed 2007 elections. However, would such an interactive radio programme make the lofty goals of the International Criminal Court (ICC) understandable and relevant to the Kenyan people? And although most Kenyans, as recent polls have revealed, feel that these ICC prosecutions are vital in order to undermine the deeply rooted culture of impunity, are they nonetheless willing to embrace this new platform and discourse through its medium? Moreover, can new media, through the use of mobile telephone’s short messaging system (SMS) also be incorporated into such a program?

Thursday, January 13, 2011

vivantleakers.org: Keeping Leakers Alive

A new website is dedicated to keeping (wiki)leakers alive by monitoring sites and domains that want wikileakers dead. After tirelessly investigating instances of killporn domains that have been targeting Julian Assange, supporters of wikileaks, better referred to as hacktivists, decided to develop vivantleakers.org, whose objective is to archive and document sites that issue death threats and/or incite violence. Hence vivantleakers.org will be a resource tool for journalists and lawyers.

Their Motto! - Hacktivism in the age of twitter. We will not be silenced. We will be heard. And we WILL keep the leakers alive.