When Kenya’s electoral body last week terminated the process of acquiring biometric voter registration kits for the country’s upcoming polls, down went a big dream for 4G Identity Solutions, an Indian firm interested in the multimillion-dollar tender.

4G Identity Solutions had outbid its three rivals in the tender floated to supply software and registration kits that use voters’ finger prints and facial images to identify them during voting.

The firm caused a stir with claims it was being asked to pay a bribe to clinch the tender, allegations that among other flaws caused Kenya to cancel the contract.

READ: Tender controversy threatens to soil IEBC’s ‘good’ name

The firm’s success in outbidding its competitors highlights the growing onslaught by Indian firms looking for lucrative IT infrastructure deals in Kenya and other countries in the region.

As firms in the region pump billions of dollars into boosting their IT infrastructure, Indian firms are increasingly emerging as the biggest beneficiaries of the battle between Delhi and Beijing for control of EA’s technology platform.

Commercial banks, parastatals and industry regulators are turning to India for IT solutions, shunning local firms.

The growing interest shown by India firms in Kenyan market is seen in recent deals they signed with a host of listed firms including KCB.

RMSI, an Indian firm specialising in integrated geographic information systems (GIS) and software solutions for risk analysis and risk management, is keen on a contract to digitise Kenya’s land records.

The project will make it easier to search for title deeds at the Ministry of Lands.

Backed by global experience of having worked on IT projects in other parts of the world, a reputation for timely delivery and knowledge in designing the most robust IT systems, the India firms are replicating in Kenya’s IT sector what the Chinese are doing for its roads.

On pricing, 4G Identity Solutions had the lowest bid in the biometric tender at Ksh3.8 billion ($45.2 million), beating Kenya’s Symphony, which had the second lowest at Ksh3.9 billion ($46.4 million).

The other two in the shortlist were South Africa’s Face Technology and Israeli’s On Track Innovations.

While India has edged out its Asian rival, China in bagging deals and projects in Africa, the rising number of IT platforms developed by New Delhi has awakened many observers to the fact that it is harbouring a grand agenda for EAC.

India is now the top source of Kenya’s imports, overtaking the United Arab Emirates and China, according to statistics released by the Kenya National Bureau of Statistics two weeks ago.

In the five months to May, Kenya imported a cumulative Ksh74.5 billion ($886 million) worth of goods from India compared with UAE’s Ksh64.7 billion ($770 million) and China’s Ksh63.7 billion ($758 million).

READ: India replaces Emirates as top source of Kenya imports

Kenya imports textiles, industrial machinery, vehicles, and electronic goods from both India and China.

India also exports pharmaceuticals to Kenya. Software imports, though, have been mostly from India, with some Chinese companies like Huwaei, which provides software for telecommunications companies, also eyeing a piece of the market.

Last year, more than 20 Indian companies were reportedly scouting for buyout opportunities in software and business process outsourcing (BPO), a fast growing segment.

Industry players said Indian firms are increasingly looking to set up a hub in Nairobi as they seek to capture the East and Central Africa market.

East Africa is one of the fastest growing markets worldwide in ICT adoption.

“It is clear India, like China has realised Africa is the next frontier. What we are seeing is a competition for new markets and resources between the two,” said Kuria Muchiru, country leader for Kenya at audit firm PricewaterhouseCoopers.

“There is a lot of investor interest in Africa by Indian firms,” said Mr Muchiru. But local Kenyan IT companies are worried that the trend could drive them out of business.

The country has been drumming up its Silicon Savannah, the local of equivalent US Silicon Valley, but local entrepreneurs find they cannot win some of the biggest IT projects being rolled out, even after Kenya scrapped import duty on software in the June budget.

Manam Infotech is providing the software and infrastructure for the agency banking model, which is being rolled out in the region by several banks.

The Indian firm provided the software for KCB’s “mobibank”, the mobile banking service now in operation in Kenya and Rwanda.

Manam Infotech has also implemented the agency banking software for Equity Bank and Orange Money and is in the process of closing other contracts in the region.  

“We are in final stages of the bidding for a few other banks, telecoms and we can disclose once the agreement is in place,” said Naga Babu Ramineni, director of business development

KCB’s Mobibank service will be rolled out in Uganda and Tanzania by the end of September.

“The bank was looking for a system that was robust with multiple channels. The system also was one that can work with independent mobile networks and perform a wide range of services,” Judith Odhiambo, KCB’s corporate communication manager said in an interview with The EastAfrican.

Mobile banking allows a customer to send money from their bank account to any mobile phone in any network among other services.

However, some local companies feel they have been given a cold shoulder on the deal.

“We had so many meetings with KCB on software but it did not happen,” said Kamal Budhabhatti chief executive officer of Craft Silicon, one of Kenya’s biggest Software companies, with offices in the US and India.

“It really caught us off guard. We thought we were the best in the world,” Mr Budhabhatti said of Manam Infotech winning the deal.

He also raised concerns about the recent scrapping of import duty on software.

“With the duty on software removed, we expect more competition. We expected government to support local talent. But this is killing it,” said Mr Budhabhatti.

KCB, however, said local suppliers could not meet the requirements to create an IT system that would work with independent mobile networks and perform a wide range of services such as transferring money from a customer account to any mobile network.

Leading Indian technology companies including Bharti Airtel, Mahindra Satyam, Infosys and Tata are among the firms with interest in East Africa.