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You are here: Home / cat / Kenya Digital Skills Gap Report Highlights MSME Opportunities and Risks in the Digital Economy

Kenya Digital Skills Gap Report Highlights MSME Opportunities and Risks in the Digital Economy

Dated: July 2, 2026

A new needs assessment by the Joint SDG Fund through the Green and Digital Innovation Hub (gDIH) has mapped significant digital skills gaps among micro, small and medium enterprises (MSMEs) and marginalized communities in Kenya.

The report draws on 854 responses collected across 14 innovation hubs under the DigiKen programme, offering one of the most detailed snapshots yet of how people are participating in the country’s growing digital economy. It shows strong digital engagement, with many respondents already selling goods and services online, using mobile banking, and producing digital content.

However, the findings also reveal a major gap between basic digital use and advanced digital skills. While confidence is high in everyday activities such as mobile payments and content consumption, capabilities drop sharply when it comes to areas like digital marketing, data analytics, cybersecurity, and business automation. This skills divide is limiting the ability of many small businesses to scale effectively.

One of the most striking findings is that 57.8 percent of respondents sell products or services online, yet only 6.2 percent operate their own websites. This heavy reliance on third-party platforms increases vulnerability to algorithm changes, account restrictions, and platform dependency risks, reducing long-term business stability.

Despite limited hands-on experience, interest in emerging technologies such as artificial intelligence is widespread, suggesting strong readiness for upskilling if practical and guided training is made available. The report highlights that targeted capacity-building could significantly improve productivity and resilience across MSMEs and underserved communities.

The study is part of broader UN-backed efforts supported by multiple international partners to accelerate progress toward the Sustainable Development Goals (SDGs). It emphasizes that closing the digital skills gap will be critical for inclusive economic growth, innovation, and long-term digital transformation in Kenya.

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