Source - http://www.statehousekenya.go.ke/ SPEECH BY HIS EXCELLENCY HON. MWAI KIBAKI, C.G.H., M.P., PRESIDENT AND COMMANDER-IN-CHIEF OF THE ARMED FORCES OF THE REPUBLIC OF KENYA DURING THE OFFICIAL OPENING OF THE SAFARICOM HOUSE AT SAFARICOM HOUSE, WESTLANDS, NAIROBI ON 24TH MAY, 2006 Ladies and Gentlemen, I am delighted to join you on this occasion of the official opening of Safaricom House, the new home to one of Kenya's largest corporate organizations. I take this opportunity to commend the Board of Directors and staff of Safaricom Limited for the exemplary manner in which they have managed the company. Today, Safaricom is one of the largest mobile phone services company in the region. Apart from directly employing about 900 people, Safaricom indirectly employs thousands of Kenyans in related fields, ranging from mobile phone support services to mobile phone stalls and calling booths across the country. Moreover, the company is now one of the leading taxpayers in the country, and attained the second position in the ranking of distinguished taxpayers in the last financial year. Ladies and Gentlemen, As you are aware, access to knowledge, information and communication is crucial to the development of any country today. By enabling people to communicate and interact, despite large physical distances, mobile communication has brought important changes in work practices and lifestyles. Indeed, investment in Information and Communication Technology infrastructure and development of appropriate human skills is key to ensuring the competitiveness of our country in the unfolding global digital society. It is for this reason that my Government created the Ministry of Information and Communications. This ministry is charged with the responsibility of managing two inter-related sub-sectors namely, Information and Broadcasting, and Information and Communication Technology. These sub-sectors are crucial catalysts to the growth of other sectors of the economy and are therefore expected to contribute immensely to economic recovery and wealth creation. The Government, through the Ministry of Information and Communications, is undertaking a wide range of measures aimed at developing the ICT sector in the country. These measures include, the liberalization of the information and communication sector, that has opened the way for numerous players to compete in providing services to wananchi. We are also carrying out human resource development for industry and investment in the necessary infrastructure such as the Very Small Aperture Technology. We are encouraging the growth of ICT because of its enormous potential to absorb our young people into gainful employment. Today, Information and Communication Technology is one of the fastest growing sectors in Kenya. The sector is providing investment and employment opportunities to a large number of Kenyans and consequently contributing to our national objective of poverty reduction. Mobile telephony has grown remarkably, with the number of mobile telephone lines increasing from 15,000 six years ago to the current 5.5 million. A few years ago, access to telephone services was a major problem for many Kenyans who had to walk long distances to the nearest public phone. With mobile telephony spreading to the rural areas, more Kenyans are benefiting from the rapid growth of mobile phone services taking place in our country. Today, many Kenyans are able to communicate easily and carry out their economic activities more effectively. Truly, the convergence in telecommunications is rapidly transforming our society into an information and communication society. It is encouraging to note that this growth has provided a reliable form of communication to rural communities thereby enabling our farmers to find markets for their produce. The mobile phone is today no longer a status symbol of the urban elite, but a vital tool of modern day communication. In spite of this progress, however, there is still room for continued growth and expansion of the ICT sector in the country. My government is putting in place an enabling environment to ensure expansion of the sector, which is expected to stimulate further economic growth. Indeed, the aim of my government is to create a modern and efficient telecommunications infrastructure in order to position Kenya as a hub of industrial, commercial, financial and ICT services in the region. To achieve this objective, we target to improve tele-density in rural and urban areas. We should expand our mobile telephone penetration from the current 18 percent of our population to 32 percent. Plans are also underway to expand the Internet bandwidth, to increase speeds in data processing and data transfer. Measures are also in place to implement a rural telecommunications programme that will cover all districts in the country in order to bring services closer to the people. We have achieved substantial progress in liberalizing the telecommunications industry. What Kenyans now expect is to reap the full benefits of these achievements in terms of cheaper telephone services and increased access. Indeed, while opening the outsourcing strategy conference in February this year, I announced the removal of duty on all computers and computer accessories as we continue our efforts of making Kenya a regional service centre. We must now move more boldly towards achieving the goal of making Kenya a leading technology centre. In this regard, I am directing the Ministry of Information and Communication and other related ministries to start a digitization campaign. The campaign should focus its strategies on how to reduce transaction costs, enhance local content and create employment opportunities for our youth. In addition, the Government will continue carrying out reforms in the sector, including restructuring of critical departments and parastatals. As part of this commitment, and as I announced three months ago, the Government has approved the restructuring of Telkom Kenya. Under this arrangement, 9 percent of Telkom's shareholding in Safaricom will be sold to finance the restructuring programme. The sale of Telkom shares through an Initial Public Offering is expected to be concluded by April 2007. In addition to this, the expansion and modernization of telecommunications services is on-going with the laying of a fiber optic network between Nairobi and Mombasa. I am also optimistic that both the government and private sector will find a way to fast track the laying of the undersea fibre optic cable. This project is crucial in order to further reduce the cost of connectivity in this country and the region. It will also enable us compete effectively as a regional telecommunications hub. I appeal to all parties involved in this project to resolve any outstanding issues speedily and to begin implementation of the project which will herald a new dawn in the area of telecommunications in our region. I also encourage investors to join hands with the Government in developing the ICT sector throughout the country. Indeed, there is vast investment potential in ICT, especially in the rural areas where tele-density remains unacceptably low. Investors should view the existing untapped potential as an investment and business opportunity, which should be fully exploited. I encourage mobile phone operators to deploy new technologies in rural areas in order to increase accessibility to internet. In particular, wireless broadband has both the potential and capability of providing communications connectivity to schools, government offices at the district and divisional levels, as well as offices for other rural-based organizations. As I conclude my remarks, I wish to commend the Safaricom Foundation, for it's support to a wide range of projects in health, education, culture, sports and the environment. I encourage you to continue ploughing back some of your profits into worthwhile social causes. With these remarks, ladies and gentlemen, it is now my pleasure to declare Safaricom House officially open. Thank you and God bless you. -- -- With Kind Regards, Bildad Kagai MD - Circuits & Packets Communications Ltd Content & Training Partner - JKUAT E-Government Academy Suite B2, Tetu Apartments, State House Avenue P. O. Box 20311 - 00200 Nairobi, Kenya Tel. 254 20 2728332 Fax. 254 20 2726965 Cell. 254 722 379409 URL. www.circuitspackets.co.ke URL. egov.jkuat.ac.ke