The European Union has committed to investing as much as €102 million (~US$ 116.7 million) into a variety of digital transformation and connectivity development projects in Kenya. This includes an investment of € 37 million (US$ 42.3 million) for the extension of the Blue-Raman subsea cable system connecting Djibouti, Somalia, Kenya, and Tanzania.
The EU made the commitment to extend the Google-backed subsea cable in East Africa region, during a meeting with Kenyan President William Ruto in Brussels as part of the EU-Kenya Digital Dialogue earlier this month. The EU also announced that it would invest €10 million (US$ 11.4 million) to support the Digital Transformation Centre in Kenya. This facility aims to grow AI and create an enabling policy environment for digital trade and investment to drive innovation, skills, and jobs.
The dialogue highlighted several opportunities within Kenya that would strengthen cooperation between the EU and Kenya. These opportunities include the extension of the subsea cable and the expansion of Kenya’s national fiber-optic network. Through its Global Gateway strategy, the EU said it would commit € 15 million (US$ 17.1 million) to the expansion of Kenya’s national fiber-optic network.
The East African nation currently has seven operational subsea cables, with two more set to go live between 2026 and 2027. Stoked by affordability and demand, Kenya’s data center market is expected to grow at a CAGR of 20.27 percent to reach a value of US$ 805 million by 2031. And these data centers would need robust and reliable connectivity infrastructure in the form of subsea cables.
“Kenya is a dynamic and strategic partner for the EU. Today, we agreed to take our cooperation further, creating jobs, driving innovation, and supporting sustainable growth. Our focus is on delivering concrete results for both EU and Kenyan businesses and citizens,” Henna Virkkunen, Executive Vice-President of the European Commission for Tech Sovereignty, Security and Democracy, said in a press release.
“We welcome €102 million (approximately KSh 15.3 billion) in new investments under the EU-Kenya Digital Partnership to accelerate digital transformation, expand connectivity and create opportunities for our youth and businesses,” the Kenyan president said in a statement.
These investments will accelerate digital transformation in the region, expand connectivity, and create business opportunities. Furthermore, the EU and Kenya are exploring potential investment that would establish AI factories and exchanges to facilitate access to AI and data infrastructure for universities and businesses.