The government has allocated Ksh8.6 billion to accelerate Kenya’s digital transformation agenda and support the growth of the country’s creative economy, Treasury Cabinet Secretary John Mbadi announced during the reading of the 2026/27 Budget on June 11.
Presenting the budget estimates on Thursday, Mbadi described digital transformation as “a strategic enabler in the fourth industrial revolution” and said investment in creative industries was increasingly becoming a key driver of economic growth and youth employment.
“Kenya’s creative economy encompassing film, music, fashion, arts, media, digital content, and design, has become a powerful engine for growth and youth empowerment. Investing in creative industries expands cultural exports and drives innovation.”
The proposed funding is expected to build on the gains already recorded in the sector.
Mr Mbadi told Parliament that Kenya had facilitated the production of 1,745 local and foreign films and trained 1,847 filmmakers to strengthen the country’s creative ecosystem and to position Kenya as a regional production hub.
Additionally, the Cabinet Secretary said the government, in partnership with the United Nations Development Programme (UNDP), had developed the NextGen initiative to provide recently graduated youth with paid internship opportunities in the private sector.
To support the programme, Mr Mbadi said the government had committed an initial allocation of Ksh. 2B.
In today’s allocation, the CS proposed Ksh 8.6B to accelerate digital adoption and inclusion, which included Ksh 4.3B for the Kenya Digital Economy Acceleration Project, Ksh 1.3B for the maintenance and rehabilitation of the National Optic Fibre Backbone Infrastructure, and Ksh 528M for last-mile county connectivity projects.
Additional allocations include Ksh 309M for government shared services, Ksh 382M for digital superhighway cybersecurity initiatives, Ksh 400M for the establishment of digital hubs, and Ksh 455M for ICT infrastructure maintenance.
Mr Mbadi said the investments are intended to expand digital access, strengthen connectivity and create opportunities for young people in emerging sectors.
“Digital connectivity and literacy are essential for education, healthcare, finance, markets, public services, and emerging digital opportunities.”
