Kenya: School Internet Costs Drop After Procurement Reforms

18 December 2025
Capital FM (Nairobi)
By Phidel Kizito

Nairobi — Kenya's decision to open up procurement for school internet connectivity has led to a sharp decline in broadband costs, highlighting how competition-led reforms can deliver large-scale fiscal savings, according to a UNICEF-Giga report.

Since joining the Giga initiative in 2019, Kenya has reduced the monthly cost of connecting public schools to about $45, down from significantly higher legacy prices, after restructuring procurement to allow multiple providers to compete under long-term agreements.

Based on reported cost reductions of up to 60 percent, the pricing suggests schools were previously paying an estimated $110 to $120 per month or more under less competitive procurement models, illustrating the scale of savings unlocked through the reforms.

The shift is reshaping the economics of digital education in a country with more than 40,000 public schools, where high connectivity costs had long constrained national rollout plans.

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"Connectivity at around $50 per month is a game-changer," said Charles Otine, UNICEF's Innovation Manager in Kenya. "It means governments can realistically sustain these services long-term and extend them to more schools, faster."

The new approach replaces single-supplier contracts with a model that aggregates demand, sets competitive pricing principles and engages multiple providers under long-term agreements, creating predictable revenue streams for operators while lowering costs for the state.

So far, 609 schools--many in rural and underserved areas--have been connected. Seven firms are currently contracted through long-term agreements running to the end of 2025, with contracts covering an additional 19 providers expected to take effect in the second quarter of 2025.

Kenya's fixed broadband market, which includes more than 380 internet service providers, has proven more competitive than the mobile segment, particularly outside major urban centres, contributing to downward pressure on prices.

Beyond cost reductions, the reforms have improved operational efficiency. In rural areas, a hub-and-client model allows high-capacity schools to share bandwidth with neighbouring institutions and households, lowering marginal costs. Access to the National Optic Fibre Backbone Infrastructure (NOFBI) has further reduced expenses, enabling 89 schools to connect at little or no cost.

However, connectivity remains only part of the equation. Devices account for about half of total digital transformation costs, while low digital literacy and infrastructure gaps--particularly electricity access, which stands at 68 percent in rural areas--continue to limit returns on investment.

Read the original article on Capital FM.

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