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 ...

06/09/2026

Dolby and MagentaTV Bring Fans Closer to the FIFA World Cup 2026 in Germany with Dolby Vision and Dolby Atmos

June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...

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...

10/07/2026

SVG GameDay, Ep. 23: Nashville Predators Teri Johnson - Throwing a Bash on Broadway

In-venue and creative video staffers at the professional and collegiate level ha...

10/07/2026

Fujifilm Announces FUJINON GF19-35mmT3.5 PZ OIS WR Cinema Power Zoom Lens

FUJIFILM North America Corporation has announced the FUJINON GF19-35mmT3.5 PZ OIS WR, a cinema power zoom lens for the GFX System with native G Mount. The lens ...

10/07/2026

Dalet Releases Long-Term Supported Update to Dalet Flex

Dalet has announced a new Long-Term Supported (LTS) release of Dalet Flex, expanding AI capabilities, workflow automation, and integration with Dalia, Dalet'...

10/07/2026

Blackmagic Design Releases Fairlight Live Audio Mixer Software

Blackmagic Design has released Fairlight Live, a free software-based broadcast audio mixer for Mac and Windows, available for download now. Simultaneously, the ...

10/07/2026

FloSports and USA South Athletic Conference Announce Exclusive Media Rights Partnership

FloSports and the USA South Athletic Conference have announced an exclusive medi...

10/07/2026

Daktronics Installs LED Video Board at Field of Dreams Ballpark in Dyersville, Iowa

Daktronics has manufactured and installed an LED video display at Field of Dream...

10/07/2026

Registration Opens for NAB Show New York 2026, October 21-22 at the Javits Center

Registration is now open for NAB Show New York 2026, taking place October 21-22 ...

10/07/2026

Sphere and Formula 1 Heineken Las Vegas Grand Prix Announce Five-Year Partnership Extension

Sphere Entertainment Co. and the Formula 1 Heineken Las Vegas Grand Prix have an...

10/07/2026

CBS Sports and Asian Football Confederation Announce U.S. Media Rights Agreement

CBS Sports and the Asian Football Confederation (AFC) have announced a media rights partnership covering the AFC Asian Cup Saudi Arabia 2027 and the AFC U23 Asi...

10/07/2026

Sony Electronics Announces RX10 V with AI Autofocus and 4K 120p Video

Sony Electronics has announced the RX10 V, the fifth generation of its RX10 all-in-one camera series. The camera will be available in August 2026 at a suggested...

10/07/2026

Chyron Releases PRIME 5.4 with Newsroom Workflow Expansion and New Playout Options

Chyron has announced PRIME 5.4, an update to its unified graphics, playout, and ...

10/07/2026

Sports Broadcasting Hall of Famer Gene Mikell Dies at 87

The nine-time Emmy Award-winning video engineer was a pioneer of NASCAR in-car cameras and a longtime fixture in FOX Sports' video-control operation...

10/07/2026

Fubo Appoints Alisa Bowen as Chief Executive Officer

FuboTV Inc. has announced the appointment of Alisa Bowen as Chief Executive Officer, effective July 10. Bowen succeeds David Gandler, who co-founded the company...

10/07/2026

Ratings Roundup: USMNT-Belgium on FOX Top Soccer Telecast in U.S. History; Mexico-England on Telemundo Sets Spanish-Language Record

Every entry on Nielsen's Top 25 Live Sports Events Telecasts for the week of...

10/07/2026

BravesVision GM Jeff Cravens on Launching MLBs Newest Team-Owned Network in 35 Days

The Braves opted to keep production in-house rather than hand it off to MLB...

10/07/2026

PBR Teams Ready To Roll at CSU for Opening Weekend 2026

Drones, jibs, robos are part of the expanded camera complement for the Professional Bull Riders series PBR Teams' 2026 season, with a 10-team field competi...

10/07/2026

20 Years Later, We're All Still Part of the Little Miss Sunshine Family

(L-R) Michael Arndt, Paul Dano, Toni Collette, Valerie Faris, Abigail Breslin, Jonathan Dayton, and Greg Kinnear attend the Park City Legacy program screening o...

10/07/2026

AES Show Nashville: Early Bird registration opens

Discounted rates available through 27 August 2026 The Audio Engineering Society (AES) have announced that Early Bird registration is now open for the AES Sh...

10/07/2026

Sony introduce the IER-M500

New in-ear monitors to launch in August 2026 Sony have announced the upcoming launch of a new pair of in-ear monitors that promise to deliver a secure, stab...

10/07/2026

Apogee CRAS Symphony Mkii Upgrade Case Study

Why CRAS Upgraded to Symphony I/O MK II When an audio school runs studios all day, every day, gear doesn't just need to sound good , it needs to survive rea...

10/07/2026

FreeCast Cities To Stream Local TV, Premium Channels

Share Copy link Facebook X Linkedin Bluesky Email...

10/07/2026

Hey Man, Cheech & Chong's Last Movie Rolls With SNS EVO

Hey Man, Cheech & Chong's Last Movie Rolls With SNS EVO Melanie Ciotti July 10, 2026 0 Comments Richard Cheech Marin and Tommy Chong have long b...

10/07/2026

Alex Zarfati's Fail Safe Shot with Blackmagic PYXIS 12K

Alex Zarfati's Fail Safe Shot with Blackmagic PYXIS 12K Brie Clayton July 10, 2026 0 Comments Camera's full frame sensor supports anamorphic s...

10/07/2026

Dalet Flex LTS Delivers Smarter Media Operations from Ing...

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

10/07/2026

N.Y. State Broadcasters Association Selects Hall of Fame Class of 2026

Share Copy link Facebook X Linkedin Bluesky Email...

10/07/2026

Chyron's PRIME 5.4 Brings Template Experience to More Newsrooms

Share Copy link Facebook X Linkedin Bluesky Email...

10/07/2026

Registration Opens for 2026 NAB Show New York

Share Copy link Facebook X Linkedin Bluesky Email...

10/07/2026

IAB Releases Redefining Media Types' Standard for Public Comment

Share Copy link Facebook X Linkedin Bluesky Email...

10/07/2026

Wedotv FAST Channels Launch on TiVo Platforms in Europe

Share Copy link Facebook X Linkedin Bluesky Email...

10/07/2026

Sage Offers Guidance on EAS Password Changes

Share Copy link Facebook X Linkedin Bluesky Email...

10/07/2026

Media Organizations Are Data-Rich but Data-Fragmented - Is This You?

Data has always been central to media operations. Every ad that airs, every campaign that delivers, and every audience that's measured- all of it generates ...

10/07/2026

New RT documentary explores Irish-led efforts to build bridges

New RT documentary explores Irish-led efforts to build bridges in divided Cyprus More than a Game: From D1 to Pyla airs Monday 13 July More Than a Game: Fro...

09/07/2026

Omaha Productions Goes All-In as World Series of Poker Main Event Returns to ESPN

With 50+ cameras, three trucks, 60+ EVS channels, RFID hole-card workflows, and ...

09/07/2026

SVG Students To Watch: Dana Shearer, Syracuse University

A recent graduate from Westchester, NY, this experienced technician has already started her first gig in the industry, as a REMI A2 Comms Specialist at ESPN In...

09/07/2026

SVG New Sponsor Spotlight: Lightcasts Andreas Kisslinger on the Role of Automation, Cloud-Based Workflows in Streaming

Live sports production is a fast-paced industry with no signs of slowing down. W...

09/07/2026

TV Skyline, thinXpool, DMC Production Collaborate on Deutsche Telekom's World Cup From NYC

From a rooftop studio in Manhattan, multiple Germany-based companies share respo...

09/07/2026

FOX One and Overtime Announce Creator Series Race to Glory for FIFA World Cup 2026

Overtime has announced a content partnership with FOX One to produce Race to Glo...

09/07/2026

Ross Production Services Standardizes on Clear-Com Intercom Across Mobile Production Fleet

Clear-Com has announced that Ross Production Services (RPS) has standardized on ...

09/07/2026

NetApp Returns as Presenting Partner of 2026 NFL Madrid Game

The NFL has announced that NetApp will return as Presenting Partner of the NFL Madrid Game, featuring the Atlanta Falcons against the Cincinnati Bengals at the ...

09/07/2026

The R&A and Cisco Announce Multi-Year Network Infrastructure Partnership

The R&A and Cisco have announced a multi-year partnership making Cisco the Official Network Supplier of The R&A and its Championships. Cisco will deploy AI-read...

09/07/2026

Fox Television Stations, Extreme Reach, and LTN Complete Live Syndication of 25 Words or Less LIVE

Fox Television Stations, Extreme Reach (XR), and LTN have announced the completi...

09/07/2026

Wynn Records Launches Direct-to-Consumer Streaming Platform Powered by Kiswe

Kiswe has announced a partnership with Wynn Records to launch the Wynn Records Network streaming platform, debuting Saturday, July 11 with a Salita Promotions b...

09/07/2026

NEP Europe Announces Multi-Year Agreement as Wimbledon Broadcast Services Provider

NEP Europe has announced a new multi-year agreement with Wimbledon Broadcast Ser...

09/07/2026

Thropic Games Raises Pre-Seed Round Led by The Famous Group

Thropic Games, a company offering casual mobile games tied to fan fundraising for sports programs, has announced a pre-seed funding round led by The Famous Grou...

09/07/2026

Game Creek Video Purchases 10 Grass Valley K-Frame Switchers for Fleet Expansion

Game Creek Video has reached an agreement with Grass Valley to purchase 10 K-Frame production switchers as part of a two-year fleet expansion. Two systems have ...

09/07/2026

Gravity Media Powers ITVs FIFA World Cup Coverage with Three-Hub Remote Production

Gravity Media is delivering a three-hub remote production workflow for ITV's...

09/07/2026

Report: North American Broadcast Journalists Spend Up to 75% of Time on Technical Workflows

A new report from Quickplay and Caretta Research, The Broadcaster Revolution Wi...