Kenya is preparing to introduce its long-awaited digital identification system, set to launch by December 2023 following a two-month testing phase. This comes two months after the government banned Worldcoin, an ID-based project launched on July 24, 2023, due to data privacy concerns.
This major development was confirmed by the Kenyan President, William Ruto, during his speech at the East Africa Device Assembly Kenya plant in Athi River, as reported by local media on October 30.
President Ruto mentioned that the implementation of a digital ID system has been a major challenge for the country for an extended period. However, there is now a positive development as the system is undergoing a testing phase, which is expected to last for two months.
He expressed confidence in the process, as he mentioned being assured by various stakeholders and government ministries that, by December, the digital ID system will be ready for launch.
This means that, after the testing phase is completed, Kenyan citizens can expect to have access to digital identification cards, which can bring several benefits, including easier access to government services, opening bank accounts, and facilitating travel.
The successful implementation of this digital ID system has the potential to enhance security, reduce fraud and corruption, and improve the efficiency of various processes in Kenya.
Maisha Namba
Furthermore, the President mentioned that the new digital identification system will be introduced alongside “Maisha Namba,” a system of lifelong personal identification numbers assigned to Kenyan citizens upon registration.
This combined ID system aims to digitize various registries and provide citizens with more efficient access to state, educational, and medical resources.
Julius Bitok, the Principal Secretary of Immigration and Citizen Services, emphasized the benefits of the digital identity system, stating that it would offer a secure and reliable way for Kenyans to verify their identity for multiple purposes.
It can be recalled that in August, the Secretary encouraged private businesses to embrace digital ID systems, noting that they enable innovative solutions like mobile banking and agent networks, thus transforming e-commerce processes.
He assured that the government would design the digital ID to facilitate commerce and streamline business transactions.
Kenya and the digital economy
Kenya is among the African nations actively embracing the digital economy, with a particular emphasis on regulatory measures. In May 2023, Venom revealed its collaboration with the Kenyan government to establish a Web3 hub within the country.
In 2022, Kenya’s legislative body passed a law under the Capital Markets legislation mandating the taxation of cryptocurrency transactions in the country.
According to this bill, both individuals and organizations in Kenya are required to pay capital gains tax to the government when engaging in the buying or selling of cryptocurrencies.
