Sustainability of pilot multipurpose community telecentres in Kenya and Uganda

Abstract

The study sought to establish the sustainability strategies that pilot multipurpose community telecentres in Kenya and Uganda are using to achieve operational (human and financial) sustainability after the project period. The study, which entailed a census survey of seven pilot multipurpose community telecentres in Kenya and Uganda, also examined the policy and regulatory framework in the two countries. Telecentre managers were interviewed using a questionnaire designed to collect data. Experts' interviews were also held with development partners, regulators, government representatives and management committee representatives. Six telecentres were studied giving a response rate of 86 percent. Research findings indicated that different sustainability levels have been attained by different telecentres and the telecentres are practicing strategic management to ensure growth and sustainability into the future. Telecentres in Kenya and Uganda have employed various strategies to meet their objectives and to generate revenue to meet operational costs. Some of the strategies in place include multi-partnership, development of add-on projects, marketing of telecentce services and products, pricing strategies based on affordability, diversification of products and services, value addition to existing services and products, active community involvement, focus on quality and lowering of costs. An assessment of revenues collected and recurrent costs however indicated a net deficit between revenues over recurrent expenditures thus implying that telecentres in Kenya and Uganda are not financially sustainable. Telecentres have been established as community institutions and are owned by the communities they serve. To ensure human resources sustainability, several 'training of trainers' courses and workshops have been held for staff, volunteers and community members. There is a need for training in management skills and retraining of staff to ensure they keep pace with the rapid technological advancements. In Kenya, there is need to increase the number of staff per telecentre to be able to cope with the varied and multidisciplinary needs of the community. The governments of Kenya and Uganda have made progress in developing policies and regulatory frameworks that enhance use and application of ICTs in rural and disadvantaged communities. In Uganda, the uee has developed policies and strategies as well as established a rural communications development fund and Kenya is currently working on the development of policy, strategies and establishment of a rural communications and development fund. Uganda has liberalized a greater part of its telecommunications services, and has two landline phone providers. Uganda also issues VSA T licenses to eligible applicants. Telkom Kenya on the other hand is still a monopoly and VSA T licenses have only been issued to a few financial and educational institutions in the country. The study concludes that pilot telecentres in Kenya and Uganda are not financially sustainable and recommends a diversification strategy that broadens the portfolio of revenue collection options based on a business plan. The study further recommends strategic partnerships comprising the government, civil society and private sector to complement the efforts of development partners and the community. Sound marketing and promotion strategies also need to be developed to increase demand for services and products and ensure sustainability. Other recommendations include training to improve management skills, clear definition of roles of the multiple partners, full liberalization and privatization of the telecommunications sector and enforcement of the policies developed. The study also provides suggestions for further research.