Technology’s critical role in an economy

Opinion and Analysis

The Addis Ababa light rail which officially begun its services in September. PHOTO | ANADOLU AGENCY 

By ANNE GITONGA-KARUORO

According to the 2015 Economic Survey, mining and quarrying, construction, and information communication technology sectors grew at average rate of over 10 per cent between 2013 and 2014.

Technology intensity is one common attribute of these sectors. In ICT, the technology that often springs to mind for most Kenyans is the mobile money platform.

By reducing the money transfer transaction cost, mobile banking platforms have revolutionised financial accessibility.

This is evidenced by the exponential growth in mobile banking transactions including among unbanked Kenyans.

Mobile banking infrastructure has expanded business opportunities with unprecedented network effects, which include bills payment platform, among others.

The mobile money revolution is gradually transforming Kenya into a cashless society with the advantage of formalising and tracking economic transactions. This lowers transaction costs whilst lowering risks associated with dealing with cash.

Mobile phone services in Kenya are, however, not limited to provision of financial services. A number of other transactions and services can be accessed through the mobile phone.

One can, for instance, conduct a business name search and make a reservation using their mobile phone. There are mobile apps that have made significant contributions in access to health services, agricultural information, and security, among others.

Innovative

The construction sector has equally been innovative as evidenced by prefabrication construction. Prefab construction embodies development of building components in a factory for assembly on site.

According to the Kenya Housing Survey 2012/13, 19 per cent of building engineering professionals respondents advocated the use of prefabricated panels. This technology could reduce construction time and may further offer the builder some cost savings.

The benefits of technology are wide reaching; the technology in the agricultural sector such as crop varieties, for instance, has led to increased productivity, improved efficiency, and at times better market prices and enhanced food security.

Water purification technology provides families with safe drinking water thus decreasing the occurrence of waterborne diseases; offering a reprieve with respect to household health expenditure.

Technology has also contributed to provision of safe energy though technology such as solar lamps and pedal powered mobile chargers.

Kenya is harnessing technology for learning, teaching, security and humanitarian purposes, among others.