
48 Per Cent of the Population of Kenya Remains Unconnected to Mobile Networks
Nairobi: Kenya is making excellent progress to achieve its target of universal broadband coverage by 2030 and there is an opportunity for the government to accelerate the country's digital transformation with more supportive policies. This was the key finding of a report released today by the GSMA, which highlights potential areas for policy reform that would support achievement of Kenya's Digital Economy Blueprint, and broadband coverage goals.
The mobile market in Kenya has expanded rapidly over the last decade, with the percentage of Kenyans connected to mobile services increasing from 30 per cent in 2009 to 52 per cent in 2019. According to GSMA Intelligence this number has the potential to grow to 58 per cent by 2025.
In order to achieve this, the GSMA report urges Kenya's government to follow best practice tax principles, simplify infrastructure deployment fees, and permit the tax deductibility of government payments. These, amongst other more supportive policies, would provide greater certainty for operators to invest in mobile networks and increase mobile penetration.
Maintaining a more stable tax system is necessary to unlock the full value of mobile connectivity for the 48 per cent of people currently unconnected in Kenya, said Akinwale Goodluck, Head of Sub-Saharan Africa, GSMA. With growing mobile penetration, Kenyans stand to benefit from improved financial inclusion, digitally-enabled local entrepreneurship, innovative health and education systems, and growing numbers of e-government initiatives. By improving the business environment for mobile operators, all Kenyans could benefit from these economic and social benefits of mobile connectivity.
The key findings from the report, Mobile Taxation in Kenya: Accelerating Digital Development', are highlighted below:
More supportive policies are key to securing Kenya's digital leadership
The tax contribution of the mobile sector in Kenya is high compared to other countries in Sub-Saharan Africa (SSA), which risks limiting the growth potential of the country's mobile sector. In 2018, the total tax contribution of the mobile sector was estimated at KES 97 billion ($954 million), representing 37 per cent of the total market revenue. This was above the average in SSA (26 per cent) and any other reviewed region, including Europe (21 per cent) and Latin America (18 per cent).
Further, the Kenyan mobile sector makes a large contribution in taxes and fees relative to its economic footprint; while the mobile market revenue accounted for 3 per cent of Kenya's GDP, the sector's tax and fee payments accounted for around 6.5 per cent of government total tax revenue. The tax contribution of the mobile sector is therefore 2.2 times its size in the economy. This is limiting mobile operator's ability to make the necessary investments in Kenya's mobile networks and improve the affordability of mobile services.
Improving the affordability of mobile services could boost economic growth
Mobile technology plays an important role in Kenya's economic growth and for this to continue, significant investment in mobile networks, and addressing barriers to adoption, such as affordability, is required. In Kenya, affordability is hampered by excise taxes, which increase the cost of using mobile services.
Mobile operators in Kenya make a significant and valuable contribution to the economy and society. Total mobile sector revenues were KES 264 billion in 2018 ($2.6 billion), generating KES 133 billion ($1.3 billion) of direct economic value. This economic value constitutes over 1.5 per cent of Kenya's gross domestic product (GDP). There is potential for the mobile sector to make a far greater economic and social contribution by increasing mobile connectivity, so everyone can participate in the country's digital economy.
An uncertain tax environment could have detrimental impacts on the wider economy
The GSMA report argues that a short-term focus on the ICT sector for tax revenue could jeopardise the long term economic and social benefits of digital inclusion.
To illustrate this, the report analyses the potential detrimental effects of a hypothetical increase in the excise duty on mobile services from 15 per cent to 18 per cent. The study highlights that such a tax increase would potentially decrease Kenya's GDP by $268m and reduce potential mobile subscribers by 950,000.
Kenya is considered a front runner in digital transformation in the region. To maintain this position, the government must strike the right balance between tax revenue maximisation, and incentivising investment and economic growth, added Akinwale Goodluck.
The report, Mobile Taxation in Kenya: Accelerating Digital Development', is available at www.gsma.com/mobile-taxation-in-kenya
-ENDS-
About the GSMA
The GSMA represents the interests of mobile operators worldwide, uniting more than 750 operators and nearly 400 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organisations in adjacent industry sectors. The GSMA also produces the industry-leading MWC events held annually in Barcelona, Los Angeles and Shanghai, as well as the Mobile 360 Series of regional conferences.
For more information, please visit the GSMA corporate website at www.gsma.com. Follow the GSMA on Twitter: @GSMA.
Media Contacts:
For the GSMA
GSMA Press Office
pressoffice@gsma.com
Like what you read? Share.
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
22/10/2026
BeckTV, Beam Dynamics, and Providius have announced a collaboration linking Beck...
22/10/2026
NETGEAR Enterprise has extended its Professional Services program beyond the network layer to cover AV-over-IP workflows, with NDI as the first ecosystem partne...
22/10/2026
USSI Global has promoted Ted Korte to Chief Technology Officer (CTO). The promotion follows the recent appointment of Ed McGivern as Chief Revenue Officer as th...
22/10/2026
Calrec has appointed Video Progetti, a Rome- and Milan-based broadcast distributor and AV system integrator, as its distribution partner for Italy. Video Proget...
22/10/2026
NHL Network's NHL Tonight will mark its 5,000th episode on Tuesday, Oct. 27, at 7 p.m. ET. The milestone covers episodes since the show began broadcasting f...
22/10/2026
CURE Insurance Arena in Trenton, New Jersey, has partnered with Daktronics to install a five-display centerhung system and three entrance displays. Installed th...
22/10/2026
Arkona technologies has announced native integration between its BLADE//runner AT300 platform and Bitfocus Buttons, the control system from Bitfocus. The arkona...
22/10/2026
U2 will perform at halftime of the NFL Thanksgiving Eve Game on Netflix, celebrating the band's 50th anniversary. The game, the first NFL Thanksgiving footb...
22/10/2026
Nyaal Banyul Geelong Convention and Event Centre in Victoria, Australia, has dep...
22/10/2026
Arqiva has migrated its occasional-use event scheduling and resource-management ...
22/10/2026
NBC Sports will present every alpine World Cup and World Championship race under...
22/10/2026
FOX Sports and The New York Racing Association (NYRA) have announced a multi-year agreement between NYRA and 1/ST establishing FOX Sports as the television home...
22/10/2026
Alpha, a technology integration and solutions partner for broadcast and production, has launched a Media Modernization practice and The Lab, a customer-facing e...
22/10/2026
Sweetwater's Dolby Atmos mobile recording studio, built inside an Airstream travel trailer, will make two Nashville-area appearances as part of a nationwide...
22/10/2026
SPORTEL Monaco 2026 wrapped up three days at the Grimaldi Forum from Oct. 19-21, welcoming rights holders, broadcasters, investors, federations, agencies, and t...
22/10/2026
Parks Associates research finds that 39% of U.S. internet households watch live ...
22/10/2026
As the Brooklyn Nets tip-off their 2026-27 NBA regular season, the technology be...
22/10/2026
Tech types from broadcasters, streamers, leagues, vendors, and service providers...
22/10/2026
Grant from Kate Capshaw and Steven Spielberg's foundation
will also expand...
22/10/2026
By Ramona Flume
One of the most exciting things about the Sundance Film Festival is having a front-row seat for the bright future of independent filmmaking. Wh...
22/10/2026
The JUPITER-08 polysynth and n/vision wavetable
Roland have announced two new additions to the Roland Boutique range: the JUPITER-08, marking 45 years since...
22/10/2026
New creative tools and colour display
Akai Professional have announced the MPK Mini Plus II, a new version of their compact 37-key MIDI controller with an u...
22/10/2026
YouTube Captures 15.8% of TV, Maintains Lead Among Media Distributors
Disney Re...
22/10/2026
aconnic AG (ISIN: DE000A0LBKW6), Munich, temporarily took its corporate website offline as a precautionary measure in response to a newly discovered critical se...
22/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/10/2026
Amagi, the media industry cloud company, today announced that NDTV, a leading Indian news television and digital journalism company, has adopted the Amagi AdFl...
22/10/2026
Dalet, a leading technology and service provider for media-rich organizations, announced today that the CBC/Radio-Canada has selected Dalet to modernize its new...
22/10/2026
IBC today announced the official call for Challenge submissions for its 2027 Accelerator Media Innovation Programme, inviting organisations from across the glob...
22/10/2026
Leading video software provider, Synamedia, today announced that Odido, one of the Netherlands' leading telecommunications providers, has selected its award...
22/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/10/2026
LA JOLLA, CA-Scripps Research today announced that Ron Burkle, founder and managing partner of The Yucaipa Companies, has been named chair of its Board of Direc...
22/10/2026
Sonnet Updates Popular Echo III PCIe Card Expansion Chassis Family with Thunderb...
22/10/2026
Blackmagic Design Announces Special Pricing for DaVinci Resolve Studio
Brie Clayton October 21, 2026
0 Comments
Now customers can upgrade to the power...
22/10/2026
Focusrite and Klevgrand launch Altitude Harmony
Today, Focusrite and Klevgrand announce Altitude Harmony the first plugin in our partnership. Altitude Har...
22/10/2026
Starting this Friday, iPhone Duo users can discover amazing apps and games optim...
22/10/2026
Launched today, NVIDIA Minerva is an AIOps platform built to help teams find problems earlier and keep AI factories productive. It brings together telemetry fro...
22/10/2026
Former State Pathologist Dr Marie Cassidy brings a scientific perspective to Ireland's last witch trial in a new one-hour documentary airing Thursday 29 Oct...
22/10/2026
Lock in and load out this GFN Thursday. Call of Duty: Modern Warfare 4 arrives o...
21/10/2026
Three investigative journalists have been chosen as the finalists for the 2026 Thomson Foundation Young Journalist Award. The successful candidates from Nigeria...
21/10/2026
The lifelong Terps fan is making the most of his dream school, producing and directing broadcasts while gaining professional reps across the Washington, DC, spo...
21/10/2026
University of Washington Intercollegiate Athletics has brought its new Sundodger...
21/10/2026
The Pac 12 has appointed its first ever Chief Commercial & Growth Officer, compl...
21/10/2026
The Wildcats' $875 million home blends an intimate 35,000-seat design with 3...
21/10/2026
M-Tron Select & Axxess free until 1 December 2026
Soft synth gurus GForce Software have just announced that they are relaunching with updated branding, a fr...
21/10/2026
A simplified approach to multiband compression
DDMF's latest plug-in has been designed to simplify the process of applying multiband compression, and in...