en.Wedoany.com Reported - The Kenyan government has allocated over 16 billion shillings (approximately $123.7 million) in the 2026/2027 fiscal year budget for the flagship national fiber optic network expansion project. Cabinet Secretary for the National Treasury John Mbadi will present the budget statement to Parliament on Thursday, with government spokesperson Isaac Mwaura revealing the amount ahead of the statement's release.

In his weekly address, Mwaura stated that the allocation and broader budget reflect the government's commitment to economic transformation, job creation, and improved service delivery, noting that the government has set aside 16.3 billion shillings for the digital highway project to accelerate connectivity, innovation, and access to digital services nationwide. Officially established in 2023, the project aims to strengthen Kenya's information communication technology infrastructure, prioritizing the laying of 100,000 kilometers of fiber optic cables. The expansion is expected to create 25,000 public Wi-Fi hotspots and establish digital village smart centers in each of Kenya's 1,450 constituencies. The project is supported by public-private partnerships and key investments such as the World Bank's $390 million "Kenya Digital Economy Acceleration Project."

In the briefing, Mwaura also defended the government's controversial Finance Bill, refuting claims that it would introduce new taxes, stating that the bill actually reduces the mobile phone tax from 56% to 25% while allocating funds for national development. Consumers, digital financial participants, and telecom operators had previously strongly protested, as the bill proposed a 25% excise duty on the value of mobile phones, which critics argued would significantly increase retail prices of smartphones. Civil society organizations and analysts also expressed concerns over data privacy and surveillance risks, as the government would need to establish mechanisms to track individual devices for taxation upon activation.

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