PwC has released its latest “Africa Entertainment & Media Outlook 2025-2029,” report. The report indicates that Kenya is projected to achieve a staggering 16% Compound Annual Growth Rate (CAGR) for internet advertising through 2029. This makes it the fastest-growing market worldwide.
This remarkable growth underscores a significant shift in how media is consumed and monetized across the continent, with Kenya emerging as a dynamic hub for digital innovation.
Digital-First Growth Story
While Kenya’s overall E&M sector is forecast to grow at a robust 5.2% CAGR through 2029, the internet advertising segment is the undeniable powerhouse. This digital acceleration is driven by several key factors:
- Youthful Demographics and Mobile-First Adoption: Kenya boasts a young, tech-savvy population that is highly engaged with digital content. The country’s mobile connections already exceed its population, and a strong mobile-first approach is evident with 48% mobile internet penetration. This widespread access, fueled by affordable smartphones and expanding 4G/5G coverage, creates a fertile ground for digital advertising.
- Explosive Data Consumption: Data consumption in Kenya is expected to grow significantly between 2024 and 2029. Mobile connectivity remains dominant, with over 72 million cellular connections. This high data usage, particularly for video content and social media, directly translates into increased opportunities for advertisers.
- Mobile Money Integration: Kenya’s pioneering mobile money services, such as M-Pesa, have seamlessly integrated with entertainment platforms. This creates an efficient ecosystem for monetizing digital content and gaming, further boosting the digital economy.
- OTT and Gaming Boom: Over-the-top (OTT) streaming services are expanding rapidly, with Kenya’s OTT market projected to grow at an 8.5% CAGR. Similarly, the gaming sector is thriving, with a 6.9% CAGR projected through 2029, largely dominated by mobile games. These platforms offer new avenues for advertising and consumer engagement.
Shift to Digital Dominance
The PwC report highlights a clear transition from traditional advertising formats to digital-first strategies. By 2029, digital ad spend in Kenya is expected to account for 64% of the total advertising market. This shift is propelled by the superior targeting capabilities, measurable ROI, and real-time analytics offered by digital platforms. Video advertising, in particular, is set for rapid expansion, projected to grow at a 22.3% CAGR in Kenya.
Michael Mugasa, Entertainment and Media Director at PwC Kenya, encapsulates this transformation: “With internet advertising and mobile gaming leading the way, Kenya’s digital media market is entering a new phase of growth.”
Navigating Challenges and Unlocking Potential
Despite the impressive growth, Kenya’s E&M sector faces challenges, particularly concerning infrastructure. Issues like data affordability and inconsistent internet stability, especially outside major urban centers, remain hurdles. However, ongoing investments in fibre rollout and 5G deployment are expected to improve connectivity and unlock new digital experiences.
The future for Kenya’s E&M market is bright, characterized by innovation and a deep understanding of local consumer behavior. As disposable incomes rise and the relative cost of connectivity decreases, more consumer spending is anticipated to flow into content and advertising.
This will attract further investment in local content production, influencer marketing, and immersive technologies, solidifying Kenya’s position as a leader in Africa’s rapidly evolving digital landscape.