Kenya’s Entertainment and Media (E&M) sector is undergoing a profound transformation, positioning the country as a global leader in digital growth. The nation’s internet advertising market is not just growing, it’s leading the world, projected to achieve an amazing 16% Compound Annual Growth Rate (CAGR) through 2029.
This explosive digital acceleration, highlighted in PwC’s latest “Africa Entertainment & Media Outlook 2025-2029,” underscores a fundamental shift in how media is consumed and monetized across the continent, with Kenya emerging as a dynamic innovation hub. While the overall E&M sector is forecast for robust growth at a 5.2% CAGR, internet advertising is the undeniable powerhouse.
This remarkable growth is fueled by technological and demographic factors:
1. Mobile-first dominance and youthful consumers
Kenya boasts a young, tech-savvy population and a hyper-mobile market. With mobile connections already exceeding the population and 48% mobile internet penetration, the ground is fertile for digital advertisers. Affordable smartphones and expanding 4G/5G coverage ensure widespread access, driving high engagement with digital content.
2. The shift in ad spend
By 2029, digital ad spend is expected to account for 64% of the total advertising market, signaling a decisive transition from traditional formats. Digital platforms are preferred for their superior targeting, measurable ROI, and real-time analytics. Video advertising is set to be the fastest-growing segment, with a projected 22.3% CAGR.
3. Integrated digital ecosystems
Kenya’s pioneering mobile money services, such as M-Pesa, have seamlessly integrated with entertainment platforms. This unique feature creates an efficient, frictionless ecosystem for monetizing digital content and mobile gaming, further turbocharging the digital economy.
4. Explosive content consumption
emand for Over-the-top (OTT) streaming is soaring, with the market projected to grow at a blistering 8.5% CAGR. Similarly, the gaming sector is thriving, projecting a 6.9% CAGR through 2029, dominated by mobile-centric games. These platforms are opening vast new avenues for advertisers and consumer engagement.
As Michael Mugasa, Entertainment and Media Director at PwC Kenya, summarized, “With internet advertising and mobile gaming leading the way, Kenya’s digital media market is entering a new phase of growth.”
Despite this impressive trajectory, challenges around data affordability and inconsistent internet stability outside major urban centers remain. However, aggressive, ongoing investments in fibre rollout and 5G deployment promise to continuously improve connectivity.
As disposable incomes rise and the cost of connectivity falls, more consumer spending is expected to flow into high-quality content and advertising. This will attract further investment in local content production, influencer marketing, and immersive technologies.