Kenya’s spending on ICT equipment more than doubled in April to a record Sh12.45 billion, up from Sh5.23 billion in March, as firms raced to expand data centres, telecom networks and digital infrastructure.
Data from the Kenya National Bureau of Statistics (KNBS) shows the surge was led by automatic data processing machines and storage units.
Import value for that category rose almost fourfold to Sh4.97 billion from Sh1.31 billion.
Telecommunications equipment also more than doubled to Sh6.57 billion from Sh2.56 billion.
Exports of ICT equipment grew too, nearly tripling to Sh438.26 million from Sh156.02 million. That was the strongest monthly performance since December 2024.
Still, the trade imbalance is stark. In April, Kenya imported nearly Sh28 worth of ICT hardware for every Sh1 it exported.
The import spike reflects demand for the physical layer of the digital economy. Servers, storage systems, networking devices, routers, fiber transmission equipment, mobile base stations and related gear are the core inputs for cloud computing, artificial intelligence and internet services.
As more businesses move workloads to the cloud and operators upgrade networks, those imports rise first, with services and software following later.
Policy and investment are pulling in the same direction. The Communications Authority recently classified commercial data centres as a regulated telecommunications activity. That signals clearer rules and oversight for a segment that was growing fast but unevenly.
At the same time, major operators are expanding locally. Airtel’s Nxtra, iXAfrica, Africa Data Centres and iColo are all building or scaling capacity in Kenya. The aim is to host more regional data locally, cut latency for East and Central African users, and meet compliance requirements that increasingly favor in-country data residency.
Kenya is positioning itself as the digital infrastructure hub for the region. It already has strong fiber connectivity, a mature mobile money ecosystem and a deep pool of tech talent in Nairobi. Data centre growth adds the next layer. Hyperscale and colocation facilities attract cloud providers, fintechs, AI startups and enterprises that need reliable power, cooling and connectivity. The hardware imports are the upfront cost of that positioning.
The export uptick tells a different part of the story. Sh438.26 million is the best month for ICT exports since late last year. Nairobi is functioning as a distribution and logistics node for technology products moving into East and Central Africa. Distributors bring in equipment, hold stock locally, and re-export to neighbouring markets. That role can grow as regional digital adoption increases.
But the ratio remains heavily skewed. Importing Sh28 for every Sh1 exported means Kenya is still largely a consumer and assembler of imported hardware, not a manufacturer. The country’s digital economy ambitions will run up against that dependence until more assembly, testing, repair and value-add services happen locally. Local content rules, tax incentives for assembly, and partnerships with global vendors could help shift the balance over time.
There are risks in the current buildout. Data centres are power-intensive and sensitive to grid reliability and cost. Fiber backhaul, interconnection and peering capacity must keep pace with new facilities, or latency benefits erode. Skilled technicians for installation, maintenance and cybersecurity are also in short supply. Without those, hardware alone does not deliver performance or resilience.
On the upside, the April numbers signal confidence. Companies are buying servers and storage now because they expect demand for cloud, AI and internet services to keep rising. Telecom operators are bringing in base stations and transmission gear to expand coverage and capacity. The CA’s regulatory step adds certainty for investors weighing multi-year data centre projects.
