Dear listers,
Happy New Year to you all!
Following some enquiries, I thought it would be helpful to share an update of the operationalization of the Universal Service Fund. All this information is available for public consumption. This gives an overview of the status of the country’s network connectivity and initiatives currently under implementation by Communications Authority of Kenya (CA) with respect to the Universal Service Fund (USF) projects.
BACKGROUND
The Kenya Information Communications Act 2009 (KICA 2009) and the Kenya Information and Communications Regulations 2010 (KICR US&A 2010) mandate the Communications Authority of Kenya (CA) to manage and administer the Universal Service Fund (USF). During the FY 2015/16, the Authority conducted an ICT Access Gaps study to identify ICT infrastructure and services gaps / high cost areas and estimate the appropriate financial subsidy amounts required from the Universal Service Fund (USF) to facilitate closing of the identified ICT gaps.
The Authority in the FY 2015/16 undertook an ICT Access Gaps study to identify gaps / high cost areas and establish the subsidy amounts required from the Universal Service Fund (USF) to facilitate closing the voice and data services gaps. This study findings were released in mid 2016.
KEY FINDINGS OF THE ACCESS GAPS STUDY
1.1 2 G Coverage
The study established that 94.4% of Kenyan population is covered by 2G leaving out only 5.6% of Kenyan population that has no access to voice communications services. Only 164 out of a total of 7,149 sub-locations remain totally uncovered, while a further 418 have less than 50% of their populations covered by 2G.
Table 1: Sub-location population 2G coverage
Coverage
100%
>90%
50% - 90%
< 50%
0%
Sub-locations
5,655
487
425
418
164
1.2 3G Broadband coverage
78% of the population in Kenya are covered by 3G.
Table 2: Sub-location population 3G coverage
Coverage
100%
>90%
50% - 90%
< 50%
0%
Sub-locations
2,454
1,324
1,146
977
1,244
1.3 The Broadcasting Sector
Kenya’s broadcasting market includes over 100 FM radio stations and around 40 digital Digital Terrestrial Television (DTT) sites.
Digital Terrestrial Television sites rollout.
The digital signal currently covers 60 per cent of the Kenyan population. The signal is available in; Nairobi, Nakuru, Nyeri, Mombasa, Kisumu,Webuye, Eldoret, Malindi, Meru (Nyambene), Kisii, Kericho, Narok, Nyahururu, Embu, Kisii, Machakos, Murang’a, Naivasha, Nyeri, Webuye, Narok, Mbuinzau, Kapenguria, Wajir, Kitui, Lamu and Namanga.
1.4 Post and Courier Sector
There are 623 post offices distributed across all counties as captured in Table 3.
Table 3: Country wide distribution of Post Offices
Administrative Level
Total
At least one PO present
Penetration of post offices
Min
Average
Max[1]
County
47
47
2
13
55
Constituency
295
264
0
2
14
Ward
1,450
480
0
33%
10
Sub-location
7,149
524
0
7%
7
1.5 Percentage 2G and 3G Network Coverage per County
Table 4: Estimated 2G and 3G Network coverage by County
County
2G (%)
3G (%)
Baringo
87.7
49.1
Bomet
99.8
97.7
Bungoma
96.4
95.2
Busia
99.1
95.4
Elgeyo Marakwet
97.1
34.7
Embu
99.6
88.3
Garissa
58.1
4.6
Homa Bay
97.8
87.6
Isiolo
54.7
16.4
Kajiado
74.4
38.9
Kakamega
99.9
93.5
Kericho
99.6
87.7
Kiambu
99.8
98.3
Kilifi
91.9
51.5
Kirinyaga
100.0
98.5
Kisii
99.9
90.2
Kisumu
99.9
98.8
Kitui
89.2
49.8
Kwale
91.5
46.4
Laikipia
90.8
48.9
Lamu
82.4
34.4
Machakos
99.9
73.0
Makueni
99.6
68.7
Mandera
66.9
9.4
marsabit
56.6
25.2
Meru
99.8
85.4
Migori
99.1
69.5
Mombasa
99.7
99.8
Muranga
99.7
80.8
Nairobi
100.0
99.9
Nakuru
99.7
74.6
Nandi
99.6
85.9
Narok
86.7
29.9
Nyamira
99.9
96.2
Nyandarua
99.7
66.1
Nyeri
99.8
86.5
Samburu
55.5
14.0
Siaya
99.6
94.5
Taita-Taveta
96.4
43.4
Tana River
85.8
12.8
Tharaka Nithi
97.9
77.6
Trans Nzoia
99.9
81.1
Turkana
34.8
10.2
Uasin Gishu
99.8
76.2
Vihiga
99.9
99.0
Wajir
48.2
8.4
West pokot
69.0
13.3
2.0 UNIVERSAL SERVICE FUND INITIATIVES TO IMPROVE ON CONNECTIVITY
2.1 USF PRIORITY PROJECTS AND PROJECTS IMPLEMENTATION STATUS
The ICTs Access Gaps study identified two priority projects namely;
a) ICT Infrastructure projects to address Voice services: Voice services make a large contribution to closing the remaining gaps. This will reduce the population coverage gap from 5.6% of the population to around half (2.8%) by 2018.
· The Voice gap project were to be tendered as multiple bidding lots at the sub-location or ward level. The NFP (Tier 1) operators were to be invited to bid for as many or few of the Lots as interests them.
b) Education Broadband connectivity projects - Establish a first step towards addressing the critical national gap, which exists in connectivity of schools in Kenya.
· The education broadband project was to be implemented through a framework of partnership with the Ministry of Education, Science and Technology. The tender for schools connectivity was to be implemented through competitive tendering process.
· The above two USF priority projects shall be implemented under the accepted guidelines for USF, which stress on transparency and competitive bidding processes as per the procurement Laws in Kenya.
2.1.1 The Voice Service Projects and Implementation Status
A total of 348 sub-locations were identified through the combined GIS and Access Gap Model methodology as the priority cases which best meet the critical performance criteria suited to “smart subsidies”, meaning that they will result in sustainable service provision in the gap areas.
The total of sub-locations to be included in the USF competition reduces to 202 after consideration of operator licence obligations between 2016 and 2018.
· Implementation Status /Achievements
The Authority in August 2016 tendered for the Voice Infrastructure projects, which were structured into multiple bidding lots at the sub-location or ward level that yielded into 105 lots.
Telecommunications Voice Infrastructure and Services Tender was a restricted Tender for Network Facility Providers (NFPs), Tier 1 operators licensed to provide GSM mobile services in Kenya.
The Network Facility Providers (NFP, Tier 1) licensed operators were invited to bid for as many or few of the Lots as interests them. The Authority on 2nd August shared the restricted tender document with the three NFP Tier 1 licensees with tender closing date being 5th October 2016.
The Authority held Pre-bidders conference on the 18th August 2016 attended by all the NFP Tier 1 operators. Tender evaluations commenced immediately after the closing on 5th October 2016.
Analysis of the USF Voice Project Bids
The Table below shows the numeric results of the competition, indicating geographical area, populations and subsidy budget lots bidded and the subsidy amount awarded per bidder.
Table 5: Results of the USF Bid Competition
Lots
Sub-locations
Geog Area
000’s Km2
Unserved population
Subsidy
Expected Budget
Original Tender
105
202
45,304
697,971
Max.
2.362 Bn
1.600 Bn
Bid
37
86
29,906
389,778
1.458 Bn
Awards
34
78
24,291
319,318
Awards 1.245 Bn
1.245 Bn
Percentage awarded
32.3%
38.6%
53. 6%
45.7%
52.7%
77.8%
Additional Lots bid but subject to clarification and finally rejected
2
7
5,615
(12.4%)
70,460
(10.1%)
0.293 Bn
N/A
Way Forward
Out of the 105 lots, 37 lots (86 sub-locations) were bided for and 34 (78 sub-locations) awarded for voice infrastructure development.
Based on the awards, 38.6% of the targeted sub-locations will be reached, against the 60-70% projected in the Access Gap Report.
The Authority intends to close the voice gaps in all sub-locations through a phased approached with the first batch of 78 sub-locations being contracted for infrastructure development in the current fiscal year.
The Authority noted that Operators generally targeted large service areas with heavy subsidies for several new towers rather than smaller areas requiring more complex network optimisation.
The Authority is also planning to offer spectrum waivers to encourage roll out to the areas considered unattractive by the Mobile Network Operators.
Summary of results
The following graph shows the results on a county-by-county basis indicating tendered versus awarded numbers of sub-locations.
It will be noted that the most successful in terms of targeted sub-locations versus awards made were Marsabit, Kwale and Bungoma (100%), followed by Wajir (63%) and Narok (57%).
2.1.2 Education Broadband Connectivity Projects and Implementation Status
The ICT Access Gaps study identified a national gap in access to broadband connectivity for the education sector.
In implementing the schools connectivity project, the Authority has partnered with the Ministry of Education Science and Technology (MoEST) through a Memorandum of Understanding (MOU) to provide broadband connectivity to all secondary schools in Kenya.
The first phase of the Education Broadband Connectivity project has been designed to provide 5Mbps dedicated Internet connectivity to 896 secondary schools identified by the Ministry of Education Science and Technology spread across all the 47 counties. The project targeted to connect up to 1,000 schools but MoEST provided only 896 secondary schools drawn from all the 47 counties in Kenya that met the Internet e-readiness criterion.
Secondary schools designated as “Internet-ready: for the purposes of this project shall be those certified by MoEST as meeting the following criteria:
i. Connected to the Grid / electricity;
ii. A secured computer laboratory with working computers;
iii. A qualified ICT / computer teacher;
iv. Offering students the KCSE Computer studies curriculum and submission of students for KNEC examination at Form 4 in 2015 and/or 2016.
Implementation Status / Achievements
The Authority advertised the Tender for the Education Broadband Connectivity Project. This was an “Open Tender” to all licensees contributing to the USF levy. The tender was grouped into 9 lots and the tender closed on 19th October 2016”. The tender has been awarded to three (3) bidders at total cost Kshs. 837 Million.
Based on the data from the Ministry of Education Science and Technology (MoEST) Kenya has about 7000 secondary school. The Authority is connecting 896 Secondary school to Broadband within the current financial year. Subsequently, the Universal Service Fund will be used to connect all the remaining secondary schools.
STATUS OF 4G COVERAGE
The Authority has issued LTE spectrum in the 800MHz on trial basis to the three (3) Mobile Network Operator i.e Safaricom Ltd in 2014, Airtel Ltd and Telkom Ltd in 2016.
Safaricom Limited has so far rolled out the 4G network in the following five (5) major towns i.e Nairobi, Mombasa, Nakuru, Kisumu and Eldoret while the other two operators are preparing to commence their 4G network roll.
Annex 1: Voice Infrastructure Project – Financial Year 2016/17
LOT
COUNTY LOT NO.
COUNTY
WARD
SUBLOCATION
UNSERVED POP’N
MAX. SUBSIDY (KSHS)
B1
B2
202
697,971
2,362.011
1
BAR-3
BARINGO
MUKUTAN
MUKUTANI
1,284
7.940
15,720,000
BARINGO
MUKUTAN
ARABAL
1,471
2
BAR-6
BARINGO
TIRIOKO
NGORON
1,501
18.139
BARINGO
TIRIOKO
KULAL
3,021
3
BAR-7
BARINGO
TIRIOKO
LOKIS
2,445
15.720
BARINGO
TIRIOKO
NGAINA
2,516
WEST POKOT
MASOOL
CHEPSERUM
1,386
8
BUNG-1
BUNGOMA
CHEPYUK
KORN'GOTUNY
1,886
17.763
17,762,999
(13)
17,763,000
BUNGOMA
CHEPYUK
CHEPKURKUR
3,285
BUNGOMA
CHEPYUK
EMIA
1,452
BUNGOMA
CHEPYUK
KUBURA
3,890
BUNGOMA
CHEPYUK
CHEPYUK
5,467
BUNGOMA
CHEPYUK
KAIMUGUL
5,709
12
GAR-7
GARISSA
GOREALE
GOREALE
4,523
32.389
32,389,000
14
GAR-2
GARISSA
SANGAILU
HANDARO
5,102
24.120
24,119,999
18
IS-3
ISIOLO
GARBATULLA
MALKADAKA
3,632
24.860
24,859,999
(16)
24,860,000
19
IS-4
ISIOLO
KINNA
KULAMAWE
3,532
28.595
28,594,999
(4)
28,595,000
26
KAJ-7
KAJIADO
KEEKONYOKIE
KISAMIS
2,429
28.929
28,928,999
KAJIADO
MOSIRO
EMBARBAL
2,429
29
KAJ-10
KAJIADO
MAGADI
ENDOINYO-OLASHO
1,728
43.669
41,485,549
KAJIADO
MAGADI
OLOIKA
1,744
KAJIADO
MAGADI
PAKASE
3,377
KAJIADO
MAGADI
SHOMPOLE
2,085
30
KIL-2
KILIFI
SOKOKE
NDUGUMANI
1,123
7.169
7,168,999
KILIFI
SOKOKE
MWANGEA
1,215
KILIFI
JILORE
MKONDONI
1,572
33
KIT-3
KITUI
ENDAU/MALALANI
MALALANI
2,136
55.354
55,353,999
KITUI
ENDAU/MALALANI
MAKUKA
2,033
KITUI
NUU
MALAWA
4,352
KITUI
KANZIKO
ILAMBA
1,467
37
KIT-5
KITUI
NGOMENI
KIMELA
2,161
12.222
12,221,999
38
KW-1
KWALE
PUMA
BUSA
7,323
123.377
123,377,000
KWALE
PUMA
VIGURUNGANI
3,244
KWALE
NDAVAYA
MWANDIMU
8,925
KWALE
MACKINON ROAD
KILIBASI
1,139
KWALE
MWERENI
KASEMENI
3,060
KWALE
MWERENI
KILIMANGODO
10,848
41
MAN-1
MANDERA
KOTULO
EL RAMU
9,165
17.990
17,989,999
42
MAN-2
MANDERA
KOTULO
BORJI GARSE
3,525
15.212
15,211,999
MANDERA
KOTULO
KUTAYU
3,447
44
MAN-5
MANDERA
WARANKARA
WARANKARA
9,387
13.200
13,199,999
47
MAN-4
MANDERA
TAKABA SOUTH
WANGAI DAHAN
10,763
16.760
15,921,999
48
MARS-2
MARSABIT
KARARE
SCHEME
1,530
33.111
33,110,999
MARSABIT
KARARE
KARARE
2,576
MARSABIT
KARARE
SONGA
1,084
MARSABIT
KARARE
KITURUNI
1,230
MARSABIT
SAGANTE/ JALDESA
BADASA
1,204
49
MARS-3
MARSABIT
DUKANA
BALESA
4,661
48.554
48,553,999
MARSABIT
DUKANA
EL-HADI
3,051
50
MARS-1
MARSABIT
LAISAMIS
NDIKIR
1,814
65.669
65,669,000
MARSABIT
KORR/NGURUNIT
NGURUNIT
3,728
MARSABIT
KORR/NGURUNIT
LONYORI PICHAU
3,015
SAMBURU
NDOTO
ILLAU
1,017
SAMBURU
NDOTO
NGURUNIT
1,611
53
NAR-3
NAROK
MAJI MOTO/ NAROOSURA
MAJI-MOTO
1,251
9.145
9,144,999
54
NAR-4
NAROK
MAJI MOTO/ NAROOSURA
ELANGATA ENTERIT
3,831
25.722
25,721,999
NAROK
MAJI MOTO/ NAROOSURA
ENKUTOTO
4,568
57
NAR-7
NAROK
LOITA
OLNGARUA
1,499
69.787
69,786,999
NAROK
LOITA
OLORTE
3,114
NAROK
LOITA
MAUSA
3,575
NAROK
LOITA
ENTASEKERA
3,231
NAROK
LOITA
OLMESUTIE
2,031
62
SAM-4
SAMBURU
NYIRO
LONJORIN
2,164
22.229
22,228,999
SAMBURU
NYIRO
LKAYO
3,581
68
TKN-7
TURKANA
KERIO DELTA
NAKURIO
9,426
56.435
56,434,999
(9)
56,435,000
TURKANA
KERIO DELTA
NAKORET
5,155
70
TKN-11
TURKANA
LOIMA
PUCH
12,002
59.938
59,937,999
(14%Coverage)
Rejected
72
TKN-12
TURKANA
TURKWEL
KAPUS
8,320
26.167
26,167,000
73
TKN-9
TURKANA
KOTARUK/LOBEI
NAIPA
4,207
19.160
19,160,000
TURKANA
KOTARUK/LOBEI
LOKIPETOT ARENGAN
4,861
75
TKN-19
TURKANA
KIBISH
KARACH 1
5,502
29.603
29,602,999
(26% Coverage)
Rejected
TURKANA
KIBISH
KAITEDE
6,333
76
TKN-13
TURKANA
LETEA
LOKIPOTO
18,956
18.451
18,450,999
(61% Coverage)
Rejected
79
TKN-17
TURKANA
LOPUR
LOPUSIKI
3,947
104.377
104,376,999
TURKANA
SONGOT
LOKUDULE
3,216
TURKANA
SONGOT
LOKANGAE
11,599
81
TKN-2
TURKANA
LOKORI/KOCHODIN
KANGITIT
4,794
81.124
81,123,999
(67% coverage)
Clarification
TURKANA
LOKORI/KOCHODIN
LOTUBAE
22,129
TURKANA
KAPEDO/NAPEITOM
NGILUKIA
4,356
82
TKN-4
TURKANA
KATILIA
KATILIA
9,513
223.315
212,149,249
(60% coverage)
Clarification
TURKANA
KATILIA
PARKATI
11,455
TURKANA
KALAPATA
KALAPATA
10,869
TURKANA
KALAPATA
LOPEROT
7,344
84
TKN-1
TURKANA
KAPEDO/NAPEITOM
NADOME
3,653
24.684
24,683,999
85
TKN-6
TURKANA
LOKICHAR
NAPOSUMURU
6,034
25.6
25,600,000
87
WAJ-6
WAJIR
BATALU
BUNA
3,465
51.493
51,492,999
WAJIR
BATALU
KUROW
3,129
89
WAJ-2
WAJIR
KHOROF/HARAR
RIBA
11,042
50.496
47,971,199
91
WAJ-5
WAJIR
ELBEN
MANSA
12,247
87.429
87,428,999
WAJIR
SARMAN
DUNTO
10,733
92
WAJ-4
WAJIR
ELDAS
KILKILEY
4,107
47.673
47,672,999
WAJIR
ELNUR/TULA TULA
LAKOLE
9,066
98
WPOK-6
WEST POKOT
CHEPARERIA
SHALPOGH
4,248
5.841
5,841,000
99
WPOK-11
WEST POKOT
ALALE
APUKE
1,442
24.696
WEST POKOT
KIWAWA
LOPET
2,300
TOTAL
1,182,081,961
385,141,000
Annex 2: Counties and number of Internet-ready Schools to be connected in 2016/17
Lotting of the Counties and number of Internet-ready Schools
Lot 1:
Lot 2:
Lot 3:
Lot 4:
Lot 5:
Lot 6:
Lot 7:
Lot 8:
Lot 9:
County
Sch
County
Sch
County
Sch
County
Sch
County
Sch
County
Sch
County
Sch
County
Sch
County
Sch
Garissa
3
Mandera
7
Wajir
4
Samburu
3
Marsabit
4
Turkana
4
W. Pokot
7
Baringo
10
Narok
10
Tana River
2
Nairobi
39
Isiolo
4
Laikipia
11
Meru
19
Elegeo Marakwet
10
Trans-Nzoia
18
Kericho
21
Migori
11
Lamu
5
Murang'a
35
Tharaka Nithi
14
Nyandarua
5
Embu
24
Uasin Gishu
17
Bungoma
54
Kisumu
23
Homa Bay
15
Kilifi
13
Kajiado
8
Kitui
31
Nakuru
35
Nyeri
29
Kakamega
55
Busia
24
Vihiga
20
Siaya
24
Mombasa
12
Makueni
26
Kiambu
45
Kirinyaga
22
Nandi
28
Bomet
10
Kisii
24
Kwale
7
Taita. Taveta
14
Nyamira
20
Machakos
69
Sub-total
111
89
93
99
99
114
103
84
104
TOTAL NO.
SCHOOLS
896
Regards,
Rachel Alwala
Assistant Director/Communications and External Affairs
Communications Authority of Kenya
PO Box 14448
Nairobi 00800
Tel: +254 703042000
Email: alwala(a)ca.go.ke
