Sony Pixel Power calrec Sony

Reform Policy to Boost Kenya's Mobile Connectivity Says GSMA

25/03/2020

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.
LINK: https://www.gsma.com/newsroom/press-release/reform-policy-to-boost-ken...
See more stories from gsma

Most recent headlines

05/01/2027

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be demoed at CES 2026

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...

04/08/2026

Dalet Announces Commercial Availability of Dalia, Bringing Media-Aware Agentic AI to Enterprise Productions

Dalet, a leading technology and service provider for media-rich organizations, t...

04/07/2026

Detective Conan: Fallen Angel of the Highway Opens in Dolby Cinemas Across Japan, Presented in Dolby Atmos and Dolby ...

April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...

01/06/2026

Dolby Sets the New Standard for Premium Entertainment at CES 2026

January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026 Throughout the week, Dolby brings to life the latest innovatio...

02/05/2026

Dalet Flex LTS Delivers Smarter Search, Faster Editing, and an AI-Ready Foundation for Modern Media

Dalet, a leading technology and service provider for media-rich organizations, t...

01/05/2026

NBCUniversal's Peacock to Be First Streamer to Integrate Dolby's Full Suite of Premium Picture and Sound Innovations

January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...

23/04/2026

NAB Honors Rob Lowe and John Tesh With Hall of Fame Induction

Share Copy link Facebook X Linkedin Bluesky Email...

23/04/2026

Roku, Samsung Dominate CTV Platform Market in U.S.

Share Copy link Facebook X Linkedin Bluesky Email...

23/04/2026

G&D and VuWall Strengthen International Sales Team

Share Copy link Facebook X Linkedin Bluesky Email...

23/04/2026

The 2026 NAB Show Reports More than 58,000 Attendees

Share Copy link Facebook X Linkedin Bluesky Email...

23/04/2026

SmallHD Monitor Overlay License for Hi-5 and Hi-5 SX deli...

Partnership between ARRI and SmallHD brings new Hi-5 license Configurable monitor overlays adapt to individual working styles Supported by SmallHD monitors ru...

23/04/2026

Jeff Cronenweth ASC Sheds Light on Tron Ares with Astera

Lighting Master Cronenweth ASC brings a unique look to each grid world with the help of Astera Jeff Cronenweth on the set of Disney's TRON: ARES. Photo by...

23/04/2026

ZEISS Supreme Primes Shine in Star-Driven Short Dr Sam

DP Chloe Smolkin ( The Late Show, Kidz Bop ) joins director Danielle Beckmann and writer/actor Raji Ahsan behind the camera for the heartfelt short comedy Dr...

23/04/2026

Apply now to join the 2026 Producer Delegation to TIFF: The Market

Apply now to join the 2026 Producer Delegation to TIFF: The Market 23 April 2026 Screen Australia, in partnership with Ontario Creates, has opened application...

22/04/2026

Live From NAB 2026: Solid State Logics Berny Carpenter on Expanding System T With Virtual DSP, Cloud Workflows

Solid State Logic is advancing its System T platform with a stronger focus on IP...

22/04/2026

Live From NAB 2026: Dolbys Giles Baker on the Growth of Dolby OptiView, Immersive Vision and Audio for Live Sports

From immersive audio to live streaming, Dolby Laboratories is focused on the fut...

22/04/2026

Live From NAB 2026: Blackmagic Design's Bob Caniglia on Implementing Cinematic Looks in Live Broadcasts

Shallow depth-of-field cameras have taken the industry by storm. Its debut a han...

22/04/2026

NAB 2026: Eastern Kentucky University deploys campus-wide ST 2110 network with Riedel and Bridge Digital

Riedel Communications (Booth C4908) announced that Eastern Kentucky University (...

22/04/2026

SportsTechBuzz at NAB 2026, Day 4: Live Reports From the Show Floor in Vegas

The NAB Show is in full swing, and the SVG and SVG Europe editorial teams are chasing down the hottest stories from all over the Las Vegas Convention Center. He...

22/04/2026

NAB 2026: Blackmagic Design Announces URSA Cine 12K LF 100G

Blackmagic Design has announced the URSA Cine 12K LF 100G, a new model in the URSA Cine family adding 100G Ethernet for SMPTE 2110 live production output up to ...

22/04/2026

Live From NAB 2026: NEPs Martin Stewart Talks 40 Years, the NEP Platform, and Scaling for FIFA World Cup

Celebrating its 40th anniversary, NEP is leaning into hybrid production with the...

22/04/2026

Live From NAB 2026: NEPs Dan Murphy on NEP Platform, TFC, and the Shift to Software-Defined Workflows

NEP VP, Platform Dan Murphy sits down at the 2026 NAB Show to unpack what NEP P...

22/04/2026

Spotify and WNBA's New York Liberty Bring Basketball and Music Together With New Partnership

Spotify and the New York Liberty are teaming up to give music and basketball fan...

22/04/2026

The story of the Focusrite ISA preamp

New 20-minute documentary explores iconic design The Focusrite Room in Mesa, Arizona, where John Aquilino hosts the Studio Console 005. In 2025, Focusrite co...

22/04/2026

EverSync SP-10 wireless from Cloudvocal

Offers compact wireless solution for pedalboards Taiwanese audio brand Cloudvocal have announced the availability of a new pedalboard-friendly wireless syst...

22/04/2026

Arturia release Augmented Persia

Latest hybrid sampling/synthesis instrument arrives Arturia's Augmented series offerings rely on a mixture of sampling and synthesis, allowing users to ...

22/04/2026

Acustica Audio launch Salt 2

Combines three distinct analogue EQ emulations The latest addition to Acustica Audio's ever-expanding collection of analogue-emulation plug-ins combines...

22/04/2026

Analog Empire: Bass & Lead from Melda Production

Final instalment in vintage-inspired instrument series Analog Empire: Bass & Lead marks the final instalment in Melda Production's vintage hardware-insp...

22/04/2026

Strymon reveal the Canoga

Fuzz pedal joins all-analogue Series A line Given that Strymons reputation was built on unapologetically digital pedals, it was a little surprising to see t...

22/04/2026

SBS names shortlisted brands for 2026 SBS Media Sustainability Challenge

SBS names shortlisted brands for 2026 SBS Media Sustainability Challenge 22 April, 2026 Media releases National broadcaster also releases its second annual...

22/04/2026

The Frequency That Decides the Fight

Why Low Band Electronic Warfare Matters...

22/04/2026

Polish national football team play-off games top monthly programme list

The nation unites around football team's World Cup dream Warsaw, Poland, 20.04.26: Nielsen, a global leader in audience measurement, data, and media intell...

22/04/2026

Nielsen and the Polish Organisation of Advertisers announce strategic partnership to elevate marketing standards in Poland

Warsaw, Poland, 22.04.26: Nielsen, a global leader in audience measurement, data...

22/04/2026

Nielsen helps New Zealand brands expand internationally with greater clarity and confidence

New market intelligence offering gives businesses a clearer view of local consum...

22/04/2026

Glookast Unveils New UX, YouTube and Social Media Connectors, Premiere Panel, Cinnafilm Tachyon Plugin and More at NAB

Glookast Unveils New UX, YouTube and Social Media Connectors, Premiere Panel, Ci...

22/04/2026

Lightcraft Technology to Preview Spark Story at NAB 2026 with Interactive Previs Experience

Lightcraft Technology to Preview Spark Story at NAB 2026 with Interactive Previs...

22/04/2026

Bolin Demos New PTZ Cameras and Controller at 2026 NAB Show

Share Copy link Facebook X Linkedin Bluesky Email...

22/04/2026

Anchor Audio Launches Beacon 3

Share Copy link Facebook X Linkedin Bluesky Email...

22/04/2026

FCC Grants WSWB TV License Transfer to Sinclair

Share Copy link Facebook X Linkedin Bluesky Email...

22/04/2026

Telemundo Puerto Rico Streaming Channel Launches On Prime Video

Share Copy link Facebook X Linkedin Bluesky Email...

22/04/2026

Chyron Announces PRIME Translate

Share Copy link Facebook X Linkedin Bluesky Email...

22/04/2026

TV Tech Announces Winners of Best of Show Awards at 2026 NAB Show

Share Copy link Facebook X Linkedin Bluesky Email...

22/04/2026

VEON's Banglalink to Bring Starlink Mobile to Customers in Bangladesh

22 Apr 2026 VEON's Banglalink to Bring Starlink Mobile to Customers in Bangladesh Bangladesh becomes the third market where VEON and Starlink Mobile partne...

22/04/2026

FIRST LOOK FOR NEW U DRAMA SERIES HIT POINT

U have unveiled exclusive first-look images for their six-part police thriller Hit Point, starring Nick Blood (Day of the Jackal) and BAFTA nominee Saffron Hock...

22/04/2026

UKTV Highlights: Saturday May 9th -15th 2026

What can I watch on UKTV and stream on U this week? This week on UKTV and the free streaming service U, viewers can watch a range of new and returning programm...

22/04/2026

Sky announces fifth year of WNT Fund with 30,000 bursary supporting players and grassroots football

Wednesday 22 April 2026 Sky announces fifth year of WNT Fund with 30,000 bursa...

22/04/2026

This Earth Day, Discover the Sustainable Productions Behind Our Films and Series

Back to All News This Earth Day, Discover the Sustainable Productions Behind Our Films and Series Emma Stewart, Ph.D. Netflix Sustainability Officer Enterta...

22/04/2026

Retail Media Standards Are Expanding Into Commerce Media - Here's Why That Matters for Measurement

The move from Retail Media to Commerce Media is about broadening the scope of th...

22/04/2026

Dolby and BMW Bring Dolby Atmos to the BMW 7 Series, Expanding Immersive Audio Across Future Models

April 22 2026, 07:00 (PDT) Dolby and BMW Bring Dolby Atmos to the BMW 7 Series,...

22/04/2026

RT Licenses Stolen Sister to Pushkin

RT Documentary On One 7-part series breaks US market for first time RT Programme Sales has announced its first deal with a US distribution partner for its 7-...