Discussion Paper No. 317 of 2023 on Leveraging on Digital Readiness to Enhance the Creative Economy in Kenyan Arid and Semi-Arid Lands

Abstract

Leveraging on digital connectivity for growth of the creative economy is a key focus of Bottom-up Economic Transformation Agenda (BETA) which aligns with Kenya's Vision 2030 goal of transitioning into a knowledge-based economy driven by technology, knowledge, and skills. However, challenges persist in effectively gauging the readiness of utilizing digital platforms in Arid and Semi- Arid Lands (ASALs), to enhance opportunities in the creative economy. This study investigates the potential of leveraging digital readiness to enhance the creative economy in Kenyan ASALs. The study assesses the digital readiness in Kenyan ASALs by developing a Digital Readiness Index (DRI) and evaluates the impact of the digital readiness on employment in the creative industries of Kenyan ASALs. Using an Ordinary Least Squares (OLS) regression model, the influence of the Digital Readiness Index (DRI) on employment in creative industries across different aridity-based categories was examined. The results indicate that digital readiness significantly affects employment in the creative economy. A unit increase in infrastructure subindex is associated with an approximately 4.49 % increase in employment in creative industries while a unit increase in education subindex is associated with a 2.83 % increase in employment in creative industries. The study recommends tailor made interventions based on the specific interplay between digital readiness and employment; prioritization of comprehensive digital infrastructure development and skill enhancement to empower local creatives and foster economic growth; and targeted strategies attuned to the distinct needs of each aridity-based region, addressing both digital readiness and creative industry expansion.