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 ...

09/10/2026

Dolby Expands Dolby OptiView Platform with New Capabilities at IBC 2026

September 10 2026, 06:00 (PDT) Dolby Expands Dolby OptiView Platform with New Capabilities at IBC 2026 New Sports Intelligence helps providers better unders...

07/10/2026

Dalet Flex LTS Delivers Smarter Media Operations from Ingest to Distribution

Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...

01/10/2026

Mesh Broadcast Services and Argo M - A Perfect Fit

Mesh Broadcast Services Fits Big-Truck Audio Power into Compact Eclipse Unit with Calrec Argo M Canadian OB company Mesh Broadcast Services has fitted its Eclip...

01/10/2026

Mediaproxy Brings AI Monitoring, Web-Based Multiviewing to NAB Show New York

Share Copy link Facebook X Linkedin Bluesky Email...

01/10/2026

Disguise brings the software behind the worlds biggest st...

For more than two decades, Disguise has powered some of the most ambitious live events and experiences in the world from Bad Bunny and Coachella to the Burj K...

01/10/2026

New California Law Offers Tax Credits For Hiring Local Journalists

Share Copy link Facebook X Linkedin Bluesky Email...

01/10/2026

State Broadcasters Want the FCC to Ease Into Software-Based EAS

Share Copy link Facebook X Linkedin Bluesky Email...

01/10/2026

Multiscreen TV Ad Campaigns Double Incremental Return On Ad Spend, Says Comcast

Share Copy link Facebook X Linkedin Bluesky Email...

01/10/2026

Scripps Calls Dish's Removal of WTVQ a Clear Violation' of Recent Agreement

Share Copy link Facebook X Linkedin Bluesky Email...

01/10/2026

Slovenian Broadcaster Taps Synamedia for Local Ads on Its International Channels

Share Copy link Facebook X Linkedin Bluesky Email...

01/10/2026

Viz Libero Teams brings 3D analysis to Richmond AFL coach...

The Australian football team can turn match footage into tactical insights to improve performance and maximize fan engagement Vizrt, the AI platform for visual...

01/10/2026

Mesh Broadcast Services Fits Big-Truck Audio Power into C...

When Mesh Broadcast Services set out to fit the pro audio capability of a large TV truck into a small audio room for high-profile sports events, Calrecs Argo M ...

01/10/2026

Emergent Appoints Tom Shelburne as Head of Business Devel...

Emergent, the browser-native broadcast graphics platform, today announced the appointment of Tom Shelburne as Head of Business Development, North America, effec...

01/10/2026

Mediaproxy brings AI driven monitoring and browser based...

Melbourne, Australia 1 October 2026: Mediaproxy, the global standard for software-based IP compliance monitoring and multiviewing solutions, will showcase maj...

01/10/2026

Clear-Com Arcadia Central Station Brings Professional Pr...

Clear-Com is supporting the education and development of future audiovisual industry professionals in Poland through the deployment of its Arcadia Central Sta...

01/10/2026

Telefonica equips new TSAmediaHUB monitoring room with Al...

Telef nica Servicios Audiovisuales (TSA), the audiovisual services arm of global telecommunications group Telef nica, has supplied and commissioned an LED wall ...

01/10/2026

FCC Unleashes Spectrum Abundance for New Uses

Share Copy link Facebook X Linkedin Bluesky Email...

01/10/2026

Poll: Alabamans Favor PBS Support, but Many Question Its Political Leanings

Share Copy link Facebook X Linkedin Bluesky Email...

01/10/2026

California Governor Signs Community NEWS Act

Share Copy link Facebook X Linkedin Bluesky Email...

01/10/2026

Green Hippo Estuary Series MC1 and MC2 Media Controllers...

Eleven minutes between headliners. The sponsor loop needs to be on screen now, and the only operator on hand is the one running lights. With the Green Hippo Est...

01/10/2026

DigiBox announces partnership with FOR-A for UK and Europ...

DigiBox has announced a new partnership with FOR-A to represent the innovative MixBoard product range in the UK market, further expanding its portfolio of broa...

01/10/2026

Screen Australia-funded documentaries bring Australian experiences and new perspectives to the screen

Screen Australia-funded documentaries bring Australian experiences and new persp...

01/10/2026

Mavis Camera 8.2 adds iPhone 18 Pro support with variable aperture control

Mavis Camera 8.2 adds iPhone 18 Pro support with variable aperture control Brie Clayton September 30, 2026 0 Comments Latest release also introduces P...

01/10/2026

Ghosts of the Gold Rush Shot with PYXIS 6K

Ghosts of the Gold Rush Shot with PYXIS 6K Brie Clayton September 30, 2026 0 Comments Blackmagic Design cameras expertly capture documentary while del...

01/10/2026

RE:Vision Effects - RSMB V7 is here!

RE:Vision Effects - RSMB V7 is here! Lori Freitag September 30, 2026 0 Comments ReelSmart Motion Blur 7 is here, the RSMB V7 cycle is open. ReelSmart ...

01/10/2026

VideoGen raises $3.3M seed as its AI video platform passes 5 million users

VideoGen raises $3.3M seed as its AI video platform passes 5 million users Brie Clayton September 30, 2026 0 Comments VideoGen co-founders Anton Koeni...

01/10/2026

Fullsteam Brewery Opens Its Durham Forever Home at American Tobacco Campus

New taproom, restaurant, lounge and theater in the historic Power Plant add to ATC's growing social hub Fullsteam Brewery and CBC Real Estate celebrate th...

01/10/2026

Berklee and APM Music Launch Global Catalog Bringing Student-Created Music to Film, TV, and Beyond

Berklee and APM Music Launch Global Catalog Bringing Student-Created Music to Fi...

01/10/2026

Vital TV antenna replaced at Sudbury

Vital TV antenna replaced at SudburyHelicopter and broadcast engineers work together to upgrade TV services for 1.5M in the East -- Share to Linkedin Octobe...

01/10/2026

Arqiva appoints Simon Duffy as Chair

Arqiva appoints Simon Duffy as ChairSimon Duffy joins as Chair effective 01 October 2026 -- Share to Linkedin October 1, 2026 Press Office 01 October 2026...

01/10/2026

The Boys are Back! The 2 Johnnies Late Night Lock In returns for Season 4

Season 4 of the multi-award-winning hit entertainment series The 2 Johnnies Late Night Lock In is back, serving up another round of unpredictable laughs, unforg...

01/10/2026

RT lyric fm's award-winning The Lyric Feature returns for new autumn series

New season begins Sunday, 4 October at 6pm on RT lyric fm and RT Listen RT lyric fm's arts and culture documentary series The Lyric Feature returns on S...

01/10/2026

RT Supporting the Arts is supporting 32 cultural events nationwide this October

RT is proud to continue its commitment to supporting and celebrating the arts across Ireland this October, highlighting a vibrant programme of theatre, music, ...

01/10/2026

Productive, Durable, Fungible: How NVIDIA AI Factories Maximize Return on Investment

AI factories are built by the megawatt, even by the gigawatt. Each megawatt fact...

01/10/2026

Fall Into 25 New Games on GeForce NOW This October

Spooky season is streaming in. Alongside falling leaves, pumpkin spice and everything nice, 25 new games are joining GeForce NOW throughout October, including s...

30/09/2026

SVG Students To Watch: Jacquelynn Dupree, Clark Atlanta University

Drawn to the many moving pieces of a live broadcast, this Los Angeles native is building a path in production management and technical operations...

30/09/2026

NHL on TNT Opens New Season in 1080p HDR With Stanley Cup Final on the Horizon

TNT Sports goes big for its season opener in Philadelphia, and REMI workflows at Techwood will again anchor much of regular-season production...

30/09/2026

Katlyn Alexander Named CEO of Qvest North America

Qvest has appointed Katlyn Alexander as CEO of Qvest in North America, effective August 16, 2026. Alexander, who previously served as COO of Qvest US, succeeds ...

30/09/2026

AAPB Wraps 2026 Season with Record Viewership and Expanded Broadcast Footprint

The American Association of Professional Baseball (AAPB) has wrapped its 2026 season, with leaguewide attendance surpassing 1.4 million for the fifth consecutiv...

30/09/2026

Veritone Partners with ATP Media to License Tennis Archive in North America

Veritone has announced a multi-year content licensing agreement with ATP Media, the broadcast production and distribution arm of the ATP Tour, making ATP's ...

30/09/2026

Netflix To Stream WWE Exclusively in Japan Beginning October 1

Netflix has announced it will become the exclusive home for WWE programming in Japan beginning October 1, 2026. The lineup includes Raw, SmackDown, NXT, Premium...

30/09/2026

SES and Sky Extend Satellite Capacity Agreement for UK and Ireland

SES and Sky have announced a new multi-year agreement for direct-to-home satellite services across the United Kingdom and Republic of Ireland, running into the ...

30/09/2026

Big Blue Marble Adds Live Multiview Channels to Cloud Video Kit via AWS Elemental Dynamic Multiview

Big Blue Marble has announced the addition of live multiview channels to its Clo...

30/09/2026

NHRA Announces Multi-Year Media Rights Deals With FOX Sports, The CW, and FloSports

The NHRA has announced multi-year media rights agreements with FOX Sports, The C...

30/09/2026

FOX 5 Atlanta to Broadcast Nashville Predators Games in 2026-27 Season

FOX 5 Atlanta (WAGA-TV) will carry Nashville Predators games during the 2026-27 season as part of Scripps Sports' regional broadcast network for the team. G...

30/09/2026

SVG Sit-Down: Brahma AIs Patrio Cummins on the Possibilities of AI (and the Misconceptions)

AI was a big buzz on the IBC show floor but there weren't a ton of companies...

30/09/2026

PGA TOUR Names Ryan Holcomb Senior Vice President and Head of Original Content

The PGA TOUR has announced the appointment ofRyan Holcomb as Senior Vice President and Head of Original Content, according to The Hollywood Reporter. Holcomb wi...

30/09/2026

ESPN Drops the Puck on Enhanced Audio for the New NHL Season

The sound will be more immersive, with improved design and more mikes on the ice and the players The National Hockey League's season opener on Tuesday nigh...