The Communication Authority’s Universal Service Fund (USF) Strategy 2023–2027 marks a critical juncture in Kenya’s digital transformation journey, aiming to ensure that no community is left behind in the digital revolution.
Universal Service and Access Funds (USAFs) are used to enhance telecommunications access in rural and remote areas by funding the deployment of infrastructure, such as towers and cables, to connect these regions to communication networks.
However, the ambitious plan faces a significant funding gap, highlighting the need for innovative partnerships and resource mobilisation to realise the vision of universal digital access.
Funding Gaps: The Challenge Ahead
The USF Strategy requires a total investment of KES 40.037 billion over the next five years to expand ICT infrastructure, foster digital skills, and build institutional capacity across the country.
The CA can raise KES 28 billion, leaving a shortfall of KES 12 billion that must be bridged to achieve the strategy’s objectives.
“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 Eng.Leo Boruett Director of the USF.
This funding gap directly impacts critical initiatives, including the rollout of ICT infrastructure in unserved and underserved areas and programs targeting digital literacy and local content development for women, youth, the elderly, and persons with disabilities (PwDs).
Role and Impact of the Universal Service Fund
The underlying principle of the USF is to make ICT services accessible and affordable for all Kenyans, especially in marginalized regions.
The Kenya Information and Communications Act of 1998 established the Universal Service Fund (USF), administered by the CA.
To operationalise the USF, the CA conducted ICT Access Gap Studies in 2016 and 2021. The 2021 study revealed that 96.3% of Kenya’s population had broadband access, with a 3.7% gap remaining.
From 2015 to 2021, the USF funded voice and data infrastructure in 76 sub-locations across 15 counties, connecting over 500,000 people and significantly reducing the digital divide.
Additionally, the USF provided broadband to over 800 schools, enabling reliable data access.
“When you think of the impact of the USF, imagine Kora sub-location in Kajiado County, where small townships are mushrooming because of mobile connectivity in the area,” said Mr. David Mugonyi, Director General, CA.
It’s Official!
We are proud to unveil the Universal Service Fund (USF) Strategy 2023–2027, a bold step towards bridging the digital divide and enhancing access to ICT services across the country.Access the full strategy here
https://t.co/ToX0RorbPB
#USFStrategy pic.twitter.com/9iqINA6kLM
— Communications Authority of Kenya (CA) (@CA_Kenya) May 20, 2025
Strategic Priorities for 2023–2027
The new strategy focuses on three key priorities:
- Expanding Infrastructure and Services: Closing the remaining digital access gaps with an emphasis on quality and sustainability.
- Fostering Digital Skills and Local Content: Maximising the positive impact of ICTs through targeted capacity-building and content development.
- Building Institutional Capacity: Strengthening USF’s administration and management for effective project delivery.
These priorities are aligned with Kenya’s national development frameworks, including the Constitution, the Kenya Information and Communications Act, the Bottom-up Economic Transformation Agenda (BETA), and the Kenya National Digital Masterplan 2022–2032.
Mobilising Resources: A Call for Collaboration
To address the KES 12 billion funding gap, the CA is actively pursuing resource mobilisation strategies, including
- Engaging development partners and donors for grants.
- Exploring sector-specific joint project financing.
- Using reinvested funds from licensees as seed capital.
“The achievements we have made so far and the challenging endeavours ahead of us under this Strategy were and will remain only possible through close collaboration and partnership with all the stakeholders and partners.”
“It would, therefore, be imperative to continue pursuing a collaborative approach towards the realisation of the collective vision of leveraging ICTs for socio-economic growth and the digital economy,” emphasised David Mugonyi, Director General, CA.
The Path Forward
The USF Strategy 2023–2027 is a blueprint for an inclusive digital future, but its success hinges on bridging the funding gap and fostering strong partnerships across sectors.
As Mary Mungai, Chairperson of the CA Board, noted, “ICTs remain a critical driver of Vision 2030 goals and an engine that will move the government agenda on agriculture, MSMEs, housing, healthcare, and the digital and creative economy.”
“Towards attaining the USF vision of a digitally transformed and all-inclusive society, the Authority has prioritised universal access to ICTs by implementing various priority projects across the country, mainly targeting the unserved and underserved populations.”
With sustained commitment and innovative financing, the USF can continue to transform lives and communities, ensuring that the benefits of Kenya’s digital revolution are shared by all.