Kenya has secured top position as the world’s fastest-growing internet advertising market, according to PwC’s Africa Entertainment and Media Outlook 2025 to 2029, with a projected compound annual growth rate of 16 percent that nearly doubles the global average of 8.4 percent.
The report positions Kenya as a regional digital powerhouse, crediting the country’s mobile-first economy, rising internet penetration, and rapid migration of advertising budgets from legacy media platforms to digital channels. By 2029, internet advertising is expected to generate $470 million in revenue, overtaking traditional television and commanding nearly 64 percent of Kenya’s total advertising spend.
PwC attributes the acceleration to increased smartphone usage, affordable mobile data, and mainstream adoption of data-driven marketing strategies. Brands are shifting budgets from radio and print to platforms such as Google, Meta, TikTok, and YouTube, while programmatic buying and AI-based targeting tools gain traction across both large corporations and small and medium-sized enterprises.
Video advertising is set to be the fastest-expanding segment within Kenya’s digital ecosystem, with a projected 22.3 percent annual growth rate through 2029. Social media and paid search advertising are also growing rapidly, driven by strong user engagement and expanding e-commerce adoption among Kenya’s tech-savvy population.
“With internet advertising and mobile gaming leading the way, Kenya’s digital media market is entering a new phase of growth,” said Michael Mugasa, Entertainment and Media Director at PwC Kenya.
The explosive growth forms part of a broader structural shift in Africa’s media markets, where digital revenue streams are steadily overtaking traditional advertising channels. Kenya’s momentum is reinforced by deep mobile integration in daily commerce, with mobile subscriptions exceeding the country’s population and services like M-Pesa embedded across transactions, creating a data-rich environment ideal for targeted advertising and conversion-driven campaigns.
PwC projects Kenya’s overall entertainment and media market will grow at a 5.2 percent compound annual growth rate, reaching $5.15 billion by 2029, with internet advertising serving as the primary driver. The country recorded 7.1 percent growth in 2024, expanding from $3.7 billion to just over $4.0 billion, placing it ahead of South Africa’s 6.2 percent growth and second only to Nigeria’s 11.2 percent.
Kenya is expected to significantly outpace Nigeria, whose digital advertising market is forecast to grow at 12.3 percent, and South Africa, projected at 7.9 percent, over the same period. This leadership position underscores Kenya’s emergence as a continental innovation hub with a structurally expanding digital economy.
The report reveals that internet advertising revenue is projected to overtake traditional television revenue in 2026, growing to approximately Ksh60 billion by 2029 compared to traditional TV’s Ksh43 billion. This milestone will mark a permanent shift toward digital-first marketing strategies as advertisers increasingly recognize the superior targeting capabilities and measurable results offered by digital platforms.
Kenya’s success is underpinned by a young, digitally native population that spends significant time on social media platforms like Instagram, TikTok, and YouTube. The rise of influencer marketing and social commerce has transformed how brands reach audiences, enabling more precise targeting based on behavioral data and demographic insights.
The streaming sector is also experiencing explosive growth, with over-the-top video platforms projected to expand at an 11.2 percent annual rate, supported by affordable smartphones, improved fiber and 4G connectivity, and competitive data bundles. Gaming represents another high-growth area, with social and casual gaming expected to expand by 10.1 percent annually.
PwC notes that Kenya’s integration of mobile money services into entertainment platforms has created a unique ecosystem for monetizing digital content and advertising. This seamless convergence of payments, content consumption, and commerce has enabled advertisers to close the loop from awareness to purchase within a single mobile environment.
However, challenges remain. Data affordability and inconsistent internet stability outside major urban centers continue to limit digital reach in rural areas. Despite these obstacles, aggressive investments in fiber rollout and 5G deployment promise to steadily improve connectivity across the country.
The report emphasizes that continued 5G rollout and maturing AI-led advertising technologies will deepen the shift to digital-first marketing. As disposable incomes rise and connectivity costs fall, more consumer spending is expected to flow into high-quality content and digital advertising, reinforcing Kenya’s status as Africa’s digital media leader.
“Africa’s E&M sector is redefining itself,” said Nana Madikane, PwC’s Africa Technology, Media and Telecommunications Industry leader. “We’re seeing a convergence of technology, creativity, and consumer demand that is unlocking new opportunities across the value chain. The challenge now is to scale infrastructure, support local content creation, and build inclusive digital ecosystems.”
For Kenya’s advertising industry, the PwC forecast validates the strategic pivot to digital that began accelerating during the COVID-19 pandemic. Traditional media houses have responded by building digital platforms and experimenting with hybrid revenue models, though many newspaper and magazine producers continue to experience declining circulation and advertising revenue.
The transformation has created significant opportunities for digital marketing agencies, content creators, and tech startups building advertising technology solutions tailored to African markets. Kenya’s reputation as a testing ground for digital innovation has attracted international platforms seeking to establish footholds in the continent’s growing digital economy.
As Kenya leads the global race in digital advertising growth, stakeholders across the value chain, including content creators, investors, regulators, and platform providers, face the challenge of translating insights into action. Building inclusive digital ecosystems that reach beyond urban centers while maintaining robust growth will determine whether Kenya can sustain its leadership position through the end of the decade.
Source: newsghana.com.gh
