The digital media sector in Kenya is experiencing unprecedented growth, driven by rapid technological advancements, expanding internet access, and the increasing influence of artificial intelligence (AI) in advertising.
According to the latest PwC Africa Entertainment and Media Outlook 2024–2028 report, Kenya’s entertainment and media (E&M) industry is projected to grow at a compound annual growth rate (CAGR) of 5.2%, surpassing pre-pandemic levels and positioning the country as one of the key players in Africa’s digital economy.
The most remarkable aspect of the digital media boom in Kenya is the rapid growth in internet advertising, projected to grow at a world-leading CAGR of 17.4% through 2028. The two other E&M markets projected to grow as fast in Africa are South Africa and Nigeria at 4.2% and 8.6%, respectively.
Companies are increasingly turning to digital solutions to target audiences with precision, resulting in more efficient and personalized advertising strategies. This trend is fueled by rising smartphone penetration, widespread 4G networks, and ongoing 5G rollouts, which have made it easier for businesses to engage with consumers on mobile and digital platforms.
Kenya’s mobile-first environment is transforming how consumers access media. Unlike markets with a strong fixed broadband presence, mobile services dominate internet connectivity in the country.
This has spurred growth in mobile gaming, video streaming, and over-the-top (OTT) platforms such as Netflix and Showmax. The young, tech-savvy population prefers on-demand content and interactive digital experiences, driving demand for mobile-first media services.
By 2026, digital advertising is expected to surpass traditional formats like radio and television, reflecting the global shift toward targeted, personalized ad strategies.
Kenya is positioning itself as a key player in this transition, with internet ad revenue projected to rise from $163 million in 2023 to $365 million by 2028. Meanwhile, live entertainment is rebounding strongly.
In 2023, ticket sales for live music hit record highs, driven by growing demand for live experiences despite hurdles like limited venues and challenges in attracting major performers.
Generative AI is another game-changer in Kenya’s digital media landscape. AI tools now play a crucial role in content creation, from generating scripts to enhancing visual effects, while AI-driven analytics help media companies understand consumer preferences and improve user experiences.
This has led to a surge in local digital content creation and consumption, with a growing number of Kenyan content creators using AI tools to scale their operations and reach broader audiences.
As Kenya’s E&M market continues to expand, the sector faces both opportunities and challenges. While the demand for digital services is at an all-time high, media companies must adapt to rapidly changing consumer behaviours and evolving technologies.
With the right investments and strategies, Kenya’s digital media boom could pave the way for a more inclusive, tech-driven economy.