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...

27/05/2026

Telestream Appoints Benjamin Desbois as CEO, Effective July 1

Telestream has announced that its Board of Directors has appointed Benjamin Desbois as Chief Executive Officer, effective July 1, 2026. Desbois, currently Teles...

27/05/2026

FOX MLB Leads Live-Event Categories; ESPN Is Tops Overall at 47th Annual Sports Emmy Awards

ESPN garnered 10 awards; NBC's Sunday Night Football received the Outstandin...

27/05/2026

Matrox Video Marks 50th Anniversary, Announces New Product Launch for June

Matrox Video is celebrating its 50th anniversary, marking five decades of operations from its headquarters in Montreal, Canada. Founded in 1976, the company has...

27/05/2026

MLB Announces Fan Engagement Initiatives for Americas 250th Anniversary

Major League Baseball has announced a series of initiatives tied to America's Semiquincentennial, including a national marketing campaign, Fourth of July br...

27/05/2026

Advanced Systems Group Hires Brian Gross as Account Manager for Audio Team

Advanced Systems Group (ASG) has announced that Brian Gross has joined the company as an Account Manager on its Audio team, based in the Burbank office. He will...

27/05/2026

Nielsen Research: Hispanic Fans, Asian Markets Drive Global Soccer Audience Ahead of World Cup 2026

Nielsen has released new research on soccer fandom ahead of the FIFA World Cup 2...

27/05/2026

ESL FACEIT Group Debuts First Ever Esports Vertical Stream Co-Developed With TikTok

ESL FACEIT Group (EFG) has unveiled a new partnership with TikTok to bring broad...

27/05/2026

Two Weeks Away: FIFA Outlines Production Plans for Highly Anticipated North American-Based World Cup

FIFA's Oscar Sanchez gives a deeper look to how this tournament will be cove...

27/05/2026

SVG Students To Watch: Maggie Lynn, Virginia Tech

The soon-to-be senior from Charlottesville is building her skills in replay, TD, and even creative content for HokieVision and its ACC Network productions In t...

27/05/2026

A Global Festival of Football: FOX Sports Illustrates Strategy to Bring Every FIFA Mens World Cup Match to the U.S. Audience

FOX Sports' Mike Davies breaks down the vision for this summer's showcas...

27/05/2026

Top-Tier Storytelling: Host Broadcast Services Works at Capturing the Atmosphere of the FIFA Mens World Cup

HBS's Paul King, FIFA's Oscar Sanchez preview how the masses at home wil...

27/05/2026

Matt Gangl & Pete Macheska on FOX MLBs Huge Night and an Unforgettable Postseason Run

FOX's MLB coverage dominated the night at the 47th Annual Sports Emmy Awards...

27/05/2026

FOXs Mike Davies and Team on Outstanding Technical Team Win for 2025 World Series

One of the most memorable Postseasons in baseball history would have had no memo...

27/05/2026

NBC Sports Rob Hyland Reflects on an Unforgettable Sunday Night Football Season

NBC's Sunday Night Football is among the most decorated and most watched programs in the history of television. It added to its jam-packed trophy case on Tu...

27/05/2026

Prime Videos John Ward and Mike Francis on Groundbreaking NBA on Prime Video Studio

The 2026 Sports Emmys marked a watershed moment for Prime Video Sports. After bu...

27/05/2026

Countdown to FIFA World Cup 2026: SVG Launches SportsTechLive Blog in Lead-up to Winter Games

With the Opening Match just over two weeks away, the entire sports-production-te...

27/05/2026

Spotify Brings Long-Form Magazine Articles to Audio

Spotify already brings together listeners' favorite music, podcasts, and audiobooks in one place. Now, we're trialing a new format that expands the cont...

27/05/2026

Podcast Clips Make Your Favorite Moments Easier to Save and Share

The best podcast moments deserve more than just a mental note. That's why today, we're making those moments easier to save and share with clips. Whethe...

27/05/2026

Spotify and Netflix Partner With Jay Shetty to Bring On Purpose' to Video Across Both Platforms

On Purpose is one of the most popular podcasts in the world, known for conversat...

27/05/2026

Olivia Rodrigo Brings Billions Club Live to Barcelona: Watch the Concert Film Now

On May 8, 1,500 of Olivia Rodrigo's top fans gathered in Barcelona's Tea...

27/05/2026

JZ Microphones announce the MU-1

Hybrid design combines large-diaphragm capsule & ribbon JZ Microphones have teamed up with Grammy-winning producer and engineer Marc Urselli to develop a ne...

27/05/2026

Tape Effects Collection from AIR Music Tech

Three new plug-ins inspired by classic tape effects AIR Music Tech's latest release delivers a set of plug-ins that aim to capture the character, moveme...

27/05/2026

The Crow Hill Company's Absurdly Quiet Piano goes Pro

Piano played on the edge of silence The Crow Hill Company's Vaults collection offers a continual rotation of instruments that are given away for free fo...

27/05/2026

Arturia release Memory V

Recreates Moog's iconic Memorymoog polysynth Arturia's vast software instrument range offers a combination of new and old, with innovative modern so...

27/05/2026

Accentize introduce free dxLevel plug-in

Offers loudness levelling for speech and dialogue Accentize have built up a solid reputation with their audio-restoration tools, and their latest plug-in is...

27/05/2026

10,000 units strong - The Rohde & Schwarz R&S M3SR Radio 4400

10,000 units strong - The Rohde & Schwarz R&S M3SR Radio 4400 Rohde & Schwarz celebrates a major manufacturing milestone, producing its 10,000th R&S M3SR Radi...

27/05/2026

L3Harris Introduces the XL Converge 300P Portable Public Safety Radio

The XL Converge 300P radio system emerges with a groundbreaking feature set enhancing the mission-critical communications of public safety, federal and critica...

27/05/2026

Modernizing Public Safety Communications

Pairing Two47 MCX software with existing LTE networks means tailored system upgrades that can save time, money and lives....

27/05/2026

L3Harris Strengthens Global Solid Rocket Motor Supply Chain With New PAC-3 Propulsion Supplier

PAC-3 MSE offers improved range, speed, and maneuverability, making it an effect...

27/05/2026

Brightcove Adds New Features to Its AI Suite for Video Advertising

Share Copy link Facebook X Linkedin Bluesky Email...

27/05/2026

Star Trek VFX: Recreating John Knoll's Iconic Warp Stars without a Slitscan Camera

Star Trek VFX: Recreating John Knoll's Iconic Warp Stars without a Slitscan ...

27/05/2026

Adventure World Uses Blackmagic Replay for Marine Live

Adventure World Uses Blackmagic Replay for Marine Live Brie Clayton May 27, 2026 0 Comments Large screen displays and slow motion replays dynamically ...

27/05/2026

Berklee Alumna and Assistant Professor Olivia Prez-Collellmir to Premiere Original Work at Gaud Centennial in Barcelona

Berklee Alumna and Assistant Professor Olivia P rez-Collellmir to Premiere Origi...

27/05/2026

Gravity Media Expands Into Creative Services With New Agency

Share Copy link Facebook X Linkedin Bluesky Email...

27/05/2026

Tegna Names Patrick Paolini as CEO

Share Copy link Facebook X Linkedin Bluesky Email...

27/05/2026

Telestream Taps Company Vet Benjamin Desbois as CEO

Share Copy link Facebook X Linkedin Bluesky Email...

27/05/2026

HDR10+ Technologies to Launch Eclipsa Video Certification Program

Share Copy link Facebook X Linkedin Bluesky Email...

27/05/2026

ATSC to Gather in Washington Next Week for Annual Meeting

Share Copy link Facebook X Linkedin Bluesky Email...

27/05/2026

Telestream Appoints Benjamin Desbois as Chief Executive O...

Co-founder Dan Castles to transition to Executive Chair; internal promotion reinforces continuity and long-term growth Telestream, a global leader in media wor...

27/05/2026

Big Blue Marble Announces First End-to-End 5G Broadcast S...

Big Blue Marble today announced that its Nakolos platform is the first end-to-end 5G Broadcast solution worldwide to implement the complete feature set introduc...

27/05/2026

Lightware Continues Its ESG Commitment Through Girls Day...

Lightware recently hosted the Girls' Day event in April at its headquarters in Budapest, welcoming students for an interactive introduction to engineering a...

27/05/2026

VEON's Kyivstar and Uklon Launch Ukraine's First Live Testing of Autonomous Vehicle Technology

27 May 2026 VEON's Kyivstar and Uklon Launch Ukraine's First Live Testi...

26/05/2026

Matrox Video Marks 50 Year Milestone

Share Copy link Facebook X Linkedin Bluesky Email...

26/05/2026

Roku Expands Premium Subscriptions With Fox One

Share Copy link Facebook X Linkedin Bluesky Email...

26/05/2026

Brian Gross Joins ASG's Audio Team as Account Manager

Share Copy link Facebook X Linkedin Bluesky Email...