Funding hitches hit digital villages project

Plans to decentralise information and communication technology services to villages is behind schedule due to funding hitches by the main financier, the World Bank.

Stringent conditions and high interest rates have barred the government from accessing the funds according to Information and Communication permanent secretary Bitange Ndemo.

The World Bank had approved $114.4 million loan to facilitate connectivity for Kenya’s emerging business process outsourcing industry, support the creation of digital villages in rural and urban areas and upgrade the regulatory environment.

Speaking at a Nairobi hotel on Tuesday during a media briefing organised by Kenya Data Networks, the PS said that the government has been forced to resort to Treasury and other private investors to finance the digital villages projects after it became difficult to access the World Bank funds.

As a private initiative, the Kenya Data Networks is at the moment spearheading the setting up of the digital centres. KDN chief executive Kai Wulff says they have set-up eight centres against a target of more than 100 and blames lack of funds for being unable to complete the project.