Kenya’s partnership with China boosts digital economy

Kenya’s partnership with China over the past decade has accelerated the East African nation’s digital transformation, government officials said.

Kenya is one of Africa’s leading digital economies, with its startups attracting 29% of all startup funding in the continent in 2024, the highest of any nation. According to Harriette Chiggai, an advisor to the president on women’s rights, China has played a pivotal role in this growth.

Speaking at a recent event, Chiggai singled out Huawei as one of the key players in Kenya’s digital transformation. The Chinese tech giant is a regional leader in tech infrastructure, products, and services in Africa. In Kenya, it has also been conducting education campaigns that have equipped the youth with digital skills.

Digital assets have emerged as one of the fastest-rising solutions, with Kenyans capitalizing on fast transactions, ease of access, and lower fees to bypass the traditional channels. According to a January International Monetary Fund (IMF) report, a weakening local currency and a U.S. dollar shortage have also pushed Kenyans to digital assets, with stablecoins emerging as the most popular for payments.

Beyond payments, Kenya has welcomed block reward miners over the past few years to capitalize on its green energy, with Chinese firms among the leading investors in the new mining operations.

On the mining front, Kenya faces stiff competition from neighboring Ethiopia, whose electricity costs are even lower. Ethiopia’s cheap energy has allowed some global miners to set up operations using older mining rigs that are not as efficient and would have otherwise been obsolete in regions with higher power costs.

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