The Universal Service Fund (USF) strategy for 2023 through 2027 is faced with a significant funding gap.
To be carried out successfully, the strategy that was officially launched today requires a total of KES 40.037 billion for a period of 5 years. However, the Communications Authority of Kenya (CA), mandated to implement the USF strategy, states they can raise 28 billion and have a shortfall of 12 billion.
“When you see a figure there, it doesn’t mean the money is available. Whatever you have seen is a dream, a wish list,” stated the director of the USF.
Traditionally, the CA raises USF through its licensees, e.g., telecommunication companies. To cover the deficit, it is expected to work with donors who may offer grants.
In addition, fundraising options include sector-specific joint project financing and using reinvested funds from licensees as seed capital.
Part of the initiatives facing a funding gap is the development of ICT infrastructure and services in unserved and underserved areas. Programs to develop knowledge, skills, and local content for women, youths, the elderly, and persons with disabilities (PwDs) are also facing a deficit.
The CA promises it will actively engage in developing strategies for resource mobilization to ensure the KES 12 billion gap is covered.
The underlying concept of universal service is to ensure that Information and Communication Technology (ICT) services are available and accessible to the widest number of people (and communities) at affordable prices.
Over the next five years, the new strategy will tackle three strategic priorities. These include:
- Expanding infrastructure and services to close remaining gaps, emphasising quality and sustainability
- Fostering digital skills and relevant local content to maximize ICT’s positive effects
- Building institutional capacity to enhance the USF’s administration and management for successful project implementation
