KENET was audited by KKCO East Africa auditors in the year. We realized a surplus of KSH84M in the financial year 2016/2017 as shown in the statement of comprehensive income below:

Statement of comprehensive income

Surplus declined from the previous year due to stagnation in bandwidth revenue compared in the previous year.

This was mainly realized from savings in costs particularly in reorganization of international bandwidth. There was slow growth in bandwidth income sales as average weighted unit prices reduced to $70 in the year from an average of $110 the previous year. The benefit of reduced prices was passed on to member institutions through allocations.

There is still slow uptake of enterprise services such as disaster recovery, colocation, hosting and with member institutions to take up more services.

We acknowledge budget support from member institutions in areas of office and data centre space, Point of Presence (PoP) centres space and equipment hosting as shown in Table 2 below:

PRICING TRENDS

The graph below shows the movement of weighted unit price against distributed bandwidth volumes for the period October 2012 to October 2017.

WEIGHTED UNIT PRICE PER MB/S IN USD - (OCTOBER 2012 to OCTOBER 2017

Weighted unit price graph October 2012-October 2017

The average unit prices continue falling as distributed volumes increase. The volumes have grown year on year to the current 14,000Mb/ps as at October 2017. We pass on the benefit of reduced prices to members by allocating more capacity.

KENET is able to pass on reduced prices to members through negotiation for reduction in leased line prices. For the FY 2017/2018, KENET plans to upgrade the core network which will be useful in driving down the prices to weighted price of $50 per by June 2018.

We also continue to explore cheaper distribution methods such as developing KENET owned last mile.