Distinguished Guests,

Ladies and Gentlemen,

I am pleased to join you this morning at the start of this conference on Information and Communications Technology (ICT).

The conference marks yet another milestone in our country's development towards a knowledge economy. I am pleased to note that this conference has attracted considerable interest worldwide. This is good because it is a manifestation of transformation of the world into a single market, a situation that has been realized largely as a result of growth in ICT.

I take this opportunity to welcome all participants to this conference. For those who are visiting Kenya for the first time, I welcome you to our country. I urge you to take some time to visit other parts of the country to experience the wonderful hospitality of our people and enjoy the diverse beauty of our country. Karibuni Kenya.

Ladies and Gentlemen,

As you are aware, development of any country today is dependent on accessibility to knowledge, information, and communications. Therefore, investment in ICT infrastructure and appropriate human skills are critical in establishing a digital society.

In pursuing this objective, we realize that digital technology is only a means to an end. The ultimate goal of embracing ICT is to open-up opportunities that will facilitate rapid economic development and a secure future for our country.

ICT is shaping the future of the world by eliminating geographic boundaries, converging time zones, and bringing cultures and societies closer. This has had the impact of changing the conditions of industrial development; the structure of the demand for skills; and the relationship between expanding production and employment.

The contribution of Information and Communications Technology towards development can be viewed from two different but interrelated levels. Firstly, is the rapid growth of the ICT sector and its contribution to expansion of employment opportunities and increase in export earnings as a result of the production of ICT-related goods and services; and secondly, because of enhancement of the productivity, competitiveness and growth of those economic sectors that embrace ICT. Indeed, countries that have embraced ICT have witnessed tremendous economic transformation within a short period of time. It is for these reasons, that my Government recently approved the National Information and Communications Policy, 2006.

The Government will also be tabling a new Communications Bill in the next session of Parliament. The National Information and Communications Policy creates a framework for a liberalised ICT industry and also provides a roadmap for the development of ICT in the country over the next five years.

Some of the key pillars in the ICT policy include: a liberalised sector, development of adequate ICT infrastructure, development of human resources and universal access to information technology throughout the country.

To accelerate this process, the Government is to set up a Universal Access Fund under the Communications Commission of Kenya for the establishment of village ICT centres. The aim of creating these centres is to ensure that Wananchi in the rural areas are able to access ICT free of charge.

The ICT sector in Kenya has witnessed robust activity arising from the reforms that the government has so far undertaken. For instance, E-Commerce has grown tremendously. However, I would like to see enhanced local and international trade through online payments. A Kenyan should be able to shop from any part of the world using the Internet.

I urge the private sector to invest in the facilitation of E-Commerce. On our part, the government is preparing legislation aimed at facilitating E-Commerce, for presentation to Parliament soon. With these initiatives, I hope that the various players in the ICT sector will begin to view E-Commerce as yet another key investment area in this country.Moreover, my Government is currently implementing E-Government policy which offers wide opportunities for the application of ICT to improve service delivery by the Government.

Towards this end, we are adopting a well-tested model in the Newly Industrialized economies, where the private sector partners with the public sector to develop, operate and transfer technology. One area that stands to benefit most from the implementation of this policy is settlement of pensions claims.

For example, the Pensions Department should work in conjunction with the private sector, to establish a call centre, which pensioners can use to communicate information on their payments. Such an arrangement would significantly reduce the time our pensioners currently take to receive information on their payments.

Another area that has benefited from the Government's reforms is mobile telephony, which has grown from 15,000 lines in the year 2000 to the current 5.5 million. In order to encourage more investments in the sector, the government has fully liberalized the sector through opening up of the international gateways to other players and licensing of new operators to compete with Telkom Kenya.

Further, the government has approved restructuring of Telkom Kenya. The company is to sell 9 percent of its shareholding in Safaricom to finance the restructuring programme. In this regard, I have directed that the process be expedited for Kenyans to buy at least 34 percent of the company's shares through the Nairobi Stock Exchange. We are also looking for a strategic partner to take up to 26 percent of the company's shares.

Ladies and Gentlemen,

In regard to infrastructure, the Government has created the necessary policy environment for investments in the sector. The success of the initiatives we are launching here today are dependent on how fast we develop fibre networks.

Already, we have witnessed a substantial growth in the development of fibre-optic networks within the country by both Telkom Kenya and the private sector. Indeed, I am pleased to note that Telkom Kenya’s Nairobi-Mombasa fibre-optic link will become operational in about four weeks time. This will complement the existing fibre-optic network within and around Nairobi.

Although the city fibre network covers more than 60 percent, I challenge investors to extend fibre connectivity not only in the city but also to our border points. We are at the same time rolling out broadband wireless in the rural areas at a cost of 30 million US dollars. This is in addition to the V-SAT facilities that are now readily available in the country.

My Government has also issued eight licences to internet backbone gateway operators, fifteen local loop operators and eight public data network operators. Further, I have directed that additional licenses for national telephone operators be auctioned.

As we undertake these developments, we realize that for this country to be competitive in the world, it must have access to undersea fiber-optic cables. Such access will not only guarantee adequate bandwidth, but it will also reduce costs associated with the use of satellite connectivity. Towards this end, I have directed that the Government shops for undersea fibre connectivity in the shortest time possible, and at the best price and quality.

Ladies and Gentlemen,

It is not sufficient to invest in ICT infrastructure alone. We must accord equal attention to the development of appropriate ICT skills that will enable many of the unemployed university and high school graduates find employment in this dynamic sector. In this regard, the Government is to set aside funds in the next Financial Year to re-skill and re-orient Kenyans towards the demands of ICT. Our universities have already put in place centers of excellence to cope with these new demands.

I encourage the private sector to work closely with the public sector in order to ensure that Kenya becomes one of the major ICT outsourcing destinations in the world in order to open up more employment opportunities for our youth. Indeed, ICT has the greatest potential for providing employment to our youth. The youth are better exposed and responsive to new technologies. They therefore stand to benefit considerably from my Government’s decision not to levy taxes on computers.

Moreover, and in order to increase investment and employment opportunities in this important sector, I am today announcing that my Government will also remove all taxes charged on imported computer parts and accessories. This will not only make computers affordable to more Kenyans, but it will also lead to increased productivity and employment opportunities through value addition.

Ladies and Gentlemen,

Technology has been changing rapidly in the last two decades. The opportunities it provides for improvement of the welfare of our citizens is enormous. As you deliberate and share ideas on how our countries can take advantage of these new technologies, I urge you all to view the existing digital gap in this country as an investment and business opportunity.

I encourage industry and other potential investors to join hands with the Government and Kenyans in order to take advantage of the opportunities being created by the new policy thrust.

With these remarks, ladies and gentlemen, it is now my utmost pleasure to declare this conference officially open.

Thank you and God bless you.