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Use of e‐mail, the internet and mobile phones, collectively referred to as the “new technologies” in this paper, is influenced by various factors in low‐income households. These factors, which range between individual, social, economic, environmental, cultural and knowledge, have not been explored fully, particularly in low‐income households in Kenya. This paper aims to argue that access to the new technologies does not lead automatically to use thereof, since a combination of the factors determines if (and how) the technologies are used.

This paper uses data collected through a survey conducted in 2010, which complemented the 2007 Research ICT Africa (RIA) data. The 2010 survey focused on three clusters based in Nairobi, a subset of RIA (2007). The three clusters are Ofafa 1 (A), Umoja II (B) and Riruta Satellite (C). Data from 40 households are used. Qualitative and quantitative data were collected from the households.

Age, income, gender, education level, skills and marital status influenced usage of the new technologies in diverse ways. With innovations such as M‐Pesa, the respondents who used the technology and were confident with the usage cut across education levels. Males used the new technologies more than females did. A possible reason for this may be found in a further finding which shows that males had acquired more years of education than had females. The implication of this is that if equal education opportunities were available for all, then the usage differences would be addressed across the gender divide.

The paper uses the capability approach developed by Nobel laureate, Amartya Sen as the theoretical framework. A rigorous research design and methodology was used to collect and analyse the data.

Usage of internet and mobile phones has promoted and sometimes hindered various aspects of development bringing radical changes to Kenyan households in the last couple of years. The rapid spread of mobile phones, mobile broadband and internet usage at the household level has increased the potential of these technologies leading to development outcomes. This paper aims to focus on these issues.

The paper is based on primary data collected through two surveys and is part of ongoing PhD work. A rigorous methodology was designed and used to conduct the research. Starting with the research problem that outlined the key areas for the study, research objectives were developed following a background review of the study. The paper establishes the development outcomes associated with the rapid spread and usage of the internet and mobile phones and explores if the wide usage expands or shrinks the capabilities of the households.

The analysis indicates that a high value is attached to the new technologies and in particular mobile phones. It also reveals that the new technologies enabled some capabilities and hindered others leading to diverse development outcomes. Use of internet and mobile phones led to positive and negative development outcomes in low income households in Kenya. Households' choices were based on their perceptions of the role that the new technologies played in enhancing their quality of life. Internet access and usage was limited and restricted to urban areas while mobile phone usage was distributed across the country. However, increased use of mobile internet is expected to change the situation. The paper notes that the social, economic and knowledge status of individuals, coupled with the choices they make, determines the development outcomes derived from use of these technologies.

The paper makes recommendations for further research on the effects of new technologies on quality of life.

The paper examines the extent to which usage of the internet and mobile phones enhances or hinders households' capability to achieve development in social, economic and knowledge dimensions.