Kenya to roll out a digital identification system

Kenya's president disclosed this information during a speech delivered at the East Africa Device Assembly Kenya plant in Athi River, as reported by local media on 30 October 2023. The digital ID system, a long-standing concern, is currently in the testing phase and is expected to be fully operational by December. Alongside the digital IDs, the government will introduce Maisha Namba, which is a system that assigns lifelong personal identification numbers to Kenyan citizens upon registration. This joint identification system aims to facilitate the digitisation of official records and offer citizens quicker access to state, educational, and healthcare services. 

The country's Principal Secretary of Immigration and Citizen Services explained in August that the digital identity system will provide Kenyans with a secure and reliable means to verify their identity for various purposes, including accessing government services, opening bank accounts, and travelling. Furthermore, the system is anticipated to reduce instances of fraud and corruption while enhancing operational efficiency.

He also encouraged private businesses in September to embrace digital ID systems, emphasising their potential to enable innovative solutions such as mobile banking and agent networks, thereby streamlining ecommerce processes. He assured that the government would design the digital ID system with a focus on facilitating commerce and simplifying business transactions. 

In June 2023, the Central Bank of Kenya expressed reservations about the immediate necessity of implementing a central bank digital currency (CBDC). Instead, the bank pointed to the existence of alternative innovative solutions within the existing financial ecosystem that could address payment-related challenges in Kenya, thus suggesting a preference for exploring these options in the short to medium term.

Fraud concerns in Kenya 

According to dig.watch, in July 2023, as the country was preparing to roll out the new digital identity system, concerns were expressed regarding the increasing frequency of fraud attempts. In the first half of 2023, the rate of fraud attempts surged to 17% in June, up from a record-low of 10% in January.

While this remained lower than the previous year, Kenya became the highest-risk country for ID fraud, with the Kenyan National ID card being the primary target. To address data protection and privacy concerns, Kenya introduced the Data Protection Act in 2019, obligating businesses to collect and verify user identity information. However, despite these measures, fraud attempts have continued to rise, eroding trust in the existing identification system.

As the launch date for the new identification system approaches, there is a strong emphasis on prioritising data protection to ensure a seamless and secure transition into the new digital era for Kenyan citizens.