1. INTRODUCTION 1.1 BACKGROUND Countries that have harnessed the potential of Information and Communications Technologies (ICTs) have attained significant social and economic development. In addition, they are rapidly transforming into information and knowledge-based economies. The Government, therefore, recognizes the role of ICTs in the social and economic development of the nation and has promulgated a national ICT Policy based on the Economic Recovery Strategy for Wealth and Employment Creation (2003-2007). This policy seeks to facilitate sustained economic growth and poverty reduction; promote social justice and equity; mainstream gender in national development; empower the youth and disadvantaged groups; stimulate investment and innovation in ICT; and achieve universal access. It is based on internationally accepted standards and best practices, particularly the COMESA Model adopted by the COMESA Council of Ministers in March 2003. The policy is based on four guiding principles: infrastructure development, human resource development, stakeholder participation and appropriate policy and regulatory framework. 1.2 STATUS OF ICT IN KENYA Kenya has witnessed significant growth in the ICT sector as demonstrated by the number of telephone lines, Internet Service Providers (ISPs), the number of Internet users, broadcasting stations, and market share of each one of them. The Government has liberalised the mobile cellular market and currently, there are two mobile cellular operators. Available statistics indicates that there were: (a) 260,000 fixed telephone line subscribers and 3.0 million cellular mobile subscribers by June 2004, translating into fixed teledensity of 0.75 per hundred inhabitants for fixed and 9.75 per hundred inhabitants for mobile against the world average of 19 and 21 respectively. 2