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 ...

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 ...

01/04/2026

DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION

January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION Douyin Users Can Now Create And Share Videos With Stun...

26/03/2026

Phantom C-Series High-Speed Cameras Set a New Standard for Automotive Crash and Safety Imaging

Wayne, N.J., March 26, 2026 Phantom High-Speed announces the latest product li...

25/03/2026

In The Hot Seat: The Art of Directing a Premier League Match

Live match directors Sarah Cheadle (Sky Sports), Rob Levi (TNT Sports), and Andrew Swift (BBC Sport) sit down with the Premier League's Rachel Nightingale t...

25/03/2026

SVG Students To Watch: Kyle Maier, St. Bonaventure University

The senior from Upstate New York is manning the mic while also interning for the athletic department's sports-information team In the live-sports-video ind...

25/03/2026

NAB 2026: Synamedia Launches Edge Watermarking Solution, Marks 10 Years of ContentArmor

Synamedia has announced ContentArmor Edge Watermarking, a server-side solution t...

25/03/2026

SES Taps K2 Space to Build meoSphere MEO Satellite Network

SES has announced meoSphere, a medium Earth orbit (MEO) satellite network targeted for operation by 2030. The first phase will pair SES-developed software-defin...

25/03/2026

Reuters and TVU Networks Begin Satellite-to-IP Migration for Live News Distribution

TVU Networks is working with Reuters on a phased migration from satellite to a c...

25/03/2026

Nielsen Names Three Senior Hires in Sports, Advertising, and Publishing Roles

Nielsen has announced three senior appointments. Seth Ladetsky has been named Head of Global Sports. Trevor Fellows will lead Nielsen's advertiser and agenc...

25/03/2026

Anoki and Amagi Bring Scene-Level Intelligence to In-Content CTV Ads

Anoki and Amagi have launched In-Scene Ads powered by Anoki ContextIQ across Amagi's portfolio of in-content ad formats for Free Ad-supported Streaming TV (...

25/03/2026

NAB 2026: Arkona to Unveil BLADE//planner and Platform Updates

Arkona Technologies will announce a series of enhancements to its BLADE//runner platform at NAB 2026 (Booth C.1808). The updates focus on usability and workflow...

25/03/2026

San Diego Padres Partners With Daktronics to Enhance Petco Park

Daktronics has installed two tower displays and a video wall in the Lexus Club at Petco Park in San Diego ahead of the 2026 season. Continuing to improve the ...

25/03/2026

NAB 2026: MultiDyne Marks 50th Anniversary

MultiDyne Video & Fiber Optic Systems is celebrating its 50th anniversary as NAB Show 2026 approaches. The company was founded in 1976 by Vincent Jachetta, an N...

25/03/2026

NAB 2026: IPC to Debut with One Connect Intercom Platform and New One Link Keypanels

IPC, a provider of integrated communication solutions, will make its NAB 2026 de...

25/03/2026

ESPN Tops 2026 Sports Emmy Nominations With 63 Nods

Live production categories were led by NBC, FOX, and ESPN's NFL coverage...

25/03/2026

Atlanta Braves and Spectrum Reach Multiyear Distribution Agreement for BravesVision

The Atlanta Braves and Spectrum have announced a multiyear distribution agreemen...

25/03/2026

The AI Doc Asks the Question No One Wants to Answer

(L-R) Charlie Tyrell and Daniel Roher attend The AI Doc: Or How I Became An Apocaloptimist Premiere during the 2026 Sundance Film Festival at The Ray Theatre ...

25/03/2026

Kelsey Lu and Savanah Leaf Lean Into the Emotional Core of Running To Pain' in Episode Three of Directed By'

Directed By, Spotify's documentary-style series that pulls back the curtain ...

25/03/2026

BTS and Spotify Bring ARIRANG' to Top Fans in New York City

BTS is so back., This week, the global pop superstars took the stage at New York City's Pier 17 for their first U.S. performance in four years. Part of Spo...

25/03/2026

Step Into Sound at Our New Spotify Listening Lounge in London

How you listen can shape what you hear. That's the idea behind the new Spotify Listening Lounge, an acoustic space at our London headquarters purpose-built ...

25/03/2026

Iconic Instruments launch Transport Vintage Tape

Tape effects taken to the extreme The latest release from New York-based developer Iconic Instruments is said to accurately recreate the saturation and comp...

25/03/2026

Sonuscore introduce Fantasy Vocal Phrases

Launched alongside new Vocal Phrases bundle Sonuscore's latest release has been designed specifically for composers working on fantasy TV, film and game...

25/03/2026

Steinberg unveil Nuendo 15

Latest update now live The latest version of Steinberg's post-production-focused DAW has just arrived, and comes packed with new dialogue editing, sound...

25/03/2026

Rohde & Schwarz joins FormFactor's MeasureOne partner program

Rohde & Schwarz joins FormFactor's MeasureOne partner program FormFactor and Rohde & Schwarz advance their partnership for on-wafer RF component character...

25/03/2026

L3Harris, RFTEQ Sign Agreement to Advance Sovereign Electronic Warfare Capability in Australia

L3Harris Technologies and RFTEQ Pty Ltd signed a memorandum of understanding to ...

25/03/2026

L3Harris to Provide Autonomous Underwater Capability for US Navy Submarines

L3Harris delivers combat-ready Torpedo Tube Launch and Recovery system, which deploys and retrieves Iver4 900 autonomous underwater vehicles through submarine t...

25/03/2026

Nielsen Names New Senior Leaders Supporting Sports, Advertising and Publishing Clients

The company expands leadership team under Chief Revenue Officer Amilcar Perez S...

25/03/2026

Stable TV Viewership in Poland in February as Warner Bros. Discovery Retains Top Spot

Winter Olympic Games Opening Ceremony features in top 10 programmes of the month...

25/03/2026

Mediaproxy to Show Upgrades to LogServer at 2026 NAB Show

Share Copy link Facebook X Linkedin Bluesky Email...

25/03/2026

Hitomi transforms production synchronisation with the lau...

Providing wide view timing visibility across the entire production chain...

25/03/2026

Bitfocus showcases complete control at NAB Show 2026

Continuing development drives advances in security, availability, access and connectivity...

25/03/2026

Caudalie Paris HQ elevates brand experience with INFiLED...

Caudalie, the renowned French cosmetics brand, has unveiled a state-of-the-art 200-seat auditorium at its new headquarters in the historic Marais district of ce...

25/03/2026

Telestream Unlocks Adobe-Centric Media Pipeline and Strea...

Telestream, a global leader in media workflow technologies, today announced expanded integration with Adobe Premiere, Adobe Media Encoder (AME), and Frame.io, d...

25/03/2026

Marshall Electronics Showcases New Feature Rich CV320 and...

Marshall Electronics is expanding its lineup of high-performance POV cameras designed for broadcast, live production and professional AV applications with the d...

25/03/2026

OOONA Achieves TPN Gold Star Shield - the Highest Level o...

OOONA, a global provider of professional management and production tools for the media localization industry, announced today that it has been awarded the TPN G...

25/03/2026

Gray Media to Simulcast 2026 Atlanta Braves Home Opener

Share Copy link Facebook X Linkedin Bluesky Email...

25/03/2026

2026 NAB Show Exhibitor Insight: Appear

Share Copy link Facebook X Linkedin Bluesky Email...

25/03/2026

Deepfakes Vulnerable to AI Fingerprint Hacks, Study Finds

Share Copy link Facebook X Linkedin Bluesky Email...

25/03/2026

SipMX launches at NAB Show 2026 to democratize media orch...

SipRadius, specialists in secure, low-latency media transport, will drive innovation and interoperability still further with the launch of the SipMX Alliance at...

25/03/2026

QuickLink to Showcase StudioPro Video Production Ecosyste...

QuickLink, a leading provider of award-winning video production and remote contribution solutions, will showcase its award-winning StudioPro ecosystem at The 2...

25/03/2026

Alfalite returns to NAB Show alongside FOR-A showcasing L...

Alfalite, the only European manufacturer of LED screens, will once again be present at NAB Show, the leading global event for the broadcast, media and entertain...

25/03/2026

First Time Exhibitor IPC Introduces One Link Keypanels fo...

PC, a leading provider of integrated communication solutions, will make its NAB 2026 Show debut in Booth C 3341. The company will highlight the newly branded On...

25/03/2026

LTN showcases satellite-to-IP migration solutions for cha...

Open video transport network simplifies satellite transition with new partnerships and global reach as spectrum auction nears LTN will demonstrate how its purp...

25/03/2026

Leader to present full suite of advanced Test and Measure...

Test & measurement innovator, Leader Electronics, will present the full range of Leader, PHABRIX and LeaderPhabrix T&M solutions at the NAB Show, which takes pl...

25/03/2026

MNC Software Appoints Heartland Video Systems as North Am...

MNC Software, a global leader in network management and operational support systems tailored to the broadcast and media industry, today announced the appointmen...

25/03/2026

Samsung Launches Shoppable TV Experience with Amazon

Share Copy link Facebook X Linkedin Bluesky Email...

25/03/2026

Gray Media to Simulcast 2026 Atlanta Braves to Home Opener

Share Copy link Facebook X Linkedin Bluesky Email...