Kenya's entertainment and media (E&M) sector is on a steady growth trajectory, with revenues expected to rise to US$4.8 billion by 2028 from US$3.8 billion in 2023, reflecting a 5.2 per cent compound annual growth rate (CAGR).

This makes Kenya the fastest-growing internet advertising market globally, according to PwC’s “Africa Entertainment and Media Outlook 2024–2028.”

Internet advertising leading the way

Internet advertising is the star performer in Kenya's E&M industry, projected to achieve a CAGR of 17.4 per cent between 2023 and 2028.

Revenue from this segment will grow from US$163 million in 2023 to US$365 million in 2028, driven by increased internet penetration and the rise of mobile platforms.

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While Kenya lags behind global trends in digital ad spending, internet advertising is set to surpass traditional formats by 2026.

Laolu Akindele, PwC Kenya's Technology, Media, and Telecommunications leader, said, “Kenya’s E&M industry is poised for remarkable growth, with the world’s fastest-growing internet advertising market and a leading position in mobile game spending driven by rising smartphone accessibility.”

Mobile-first growth and digital dominance

Kenya's E&M market is underpinned by mobile-first connectivity, with mobile data consumption significantly outpacing fixed broadband due to its low penetration rate of just 10.4 per cent.

The rollout of 4G and 5G networks will accelerate this trend, with 4G subscriptions expected to overtake 3G by the end of 2024.

As social media and over-the-top (OTT) streaming platforms expand, mobile services will continue to dominate the market.

OTT services, though still relatively small, are experiencing rapid growth, with revenue expected to reach US$16 million by 2028, up from US$9 million in 2023.

The rise in smartphone usage and digital subscriptions is a key driver for this growth.

Gaming and live entertainment

Kenya is unique in Africa for its dominance in traditional gaming revenues, which continue to outstrip social and casual gaming.

However, as connectivity improves and smartphones become more accessible, social gaming is expected to gain traction.

Video games and esports revenue is forecast to grow at a 7.7 per cent CAGR, reaching US$145 million by 2028.

Live music and events have rebounded strongly, with 2023 marking the highest-ever ticket sales in Kenya’s history.

Notably, 2024 saw the launch of the Sailing Music Festival, a new addition to Kenya’s live entertainment calendar, showcasing the country’s talent.

Challenges and opportunities

Despite its progress, Kenya faces hurdles such as limited broadband infrastructure and the high cost of digital access.

Nonetheless, the nation’s youthful population and increasing smartphone penetration present immense opportunities for growth.

The report emphasizes the importance of digital transformation and localized content to keep pace with evolving consumer demands.

As PwC concludes, “Kenya’s entertainment and media industry is a dynamic space with the potential to set new benchmarks in the global market.”