
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.
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
09/10/2026
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, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...
14/09/2026
Lil Baby's Dead Fresh kicks off ESPN's Week 1 Monday Night Football, ...
14/09/2026
With Super Bowl LXI waiting in Los Angeles, ESPN will use the regular season to ...
14/09/2026
By Bailey Pennick
One of the most exciting things about the Sundance Film Festival is having a front-row seat for the bright future of independent filmmaking. ...
14/09/2026
Three new models introduced
Sony have just announced the launch of three new pairs of headphones that span their premium, mid-range and entry-level line-ups...
14/09/2026
New flagship Thunderbolt units aimed at pro studios
Audient's latest announcement sees the company introduce three new high-end audio interfaces designe...
14/09/2026
Cobalt Digital IBC Stand 8.F90 // Journalists: Click to visit Cobalt
Highlights...
14/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
14/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
14/09/2026
Bitmovin, a leading provider of video streaming solutions, has announced that Australia's largest media company, Nine Entertainment (Nine), has deployed Bit...
14/09/2026
Creativepool Annual 2026 Winners Announced
Brie Clayton September 13, 2026
0 Comments
The creative industry's Most' awards celebrates another...
14/09/2026
Monday 14 September 2026
Award-winning network Sky Mobile to Offer iPhone Duo, ...
14/09/2026
Apple's latest software updates introduce Siri AI, a more intelligent, knowl...
14/09/2026
WTA Awards Tier 4 to Agility Beyond Space Subic Bay and Cikarang sites...
14/09/2026
As local models become more capable, AI agents can handle more work directly on a PC while keeping sensitive information on the device.
Portable Computer is a ...
14/09/2026
RT in association with the BBC today released first look image from the second series of The Walsh Sisters, inspired by the novels of international best-sellin...
13/09/2026
Offers eight audio and CV outputs via USB
Elektron's latest launch offers a convenient way for users to integrate hardware instruments, effects and mixe...
13/09/2026
Pixel Academy Announces Autumn Courses
Brie Clayton September 13, 2026
0 Comments
The ACT Entertainment tvONE and Green Hippo Pixel Academy has releas...
13/09/2026
2Vision Powers Dawid Podsiad o's Obrotowy Tour with Blackmagic Design
Brie Clayton September 13, 2026
0 Comments
Touring multicamera workflow buil...
13/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
13/09/2026
Sunday 13 September 2026
Sky releases trailer for Crystal Lake, an A24 produced...
12/09/2026
J. Alphonse Nicholson, Danielle Brooks, Walter Thompson-Hernandez, and Bodhi Dell attend the premiere of If I Go Will They Miss Me at the Library Center Theat...
12/09/2026
Latest Obsolete Devices pedal announced
Great Eastern FX Co. have just launched the latest pedal in their Obsolete Devices series, a range of effects pedals...
12/09/2026
September 11, 2026
BUDAPEST & SEATTLE, 10 September 2026 - Qumulo and Colorfron...
12/09/2026
Calrec expands its IP ecosystem with new Type RT console and Apex M6 Modular I/O Platform at IBC 2026 Type RT is the centrepiece of Calrec's news at IBC 202...
12/09/2026
At IBC 2026, Calrec has unveiled Type RT, a new 6, 12 and 18-motorised fader console range that condenses everything a broadcast audio desk needs into a compact...
12/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
12/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
12/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
12/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
12/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
12/09/2026
WUPPERTAL, Germany Sept. 11, 2026 From July 6 to Aug. 23, 2026, Paris hosted the Esports World Cup (EWC), a seven-week live production spanning eight stages...
12/09/2026
Riedel Communications today announced that Mediacom has purchased and deployed Easy5G , Riedel's Private 5G solution, for live broadcast coverage of La Vuel...
12/09/2026
AMP VISUAL TV is continuing the evolution of its production infrastructure with further investments in Riedel technology across its OB fleet and fixed productio...
12/09/2026
Riedel Communications today announced that Touring Video, a premier entertainment mobile production service company, continues to expand its production workflow...
12/09/2026
Atomos (7.B19) today announced new third-party accessories for Sumo PRO-19 and Shinobi 7 II, developed by SHAPE and SmallRig to give production teams more ways ...
12/09/2026
Deity Microphones Brings PR 2ii, TC-2, and D4RX to IBC2026
Brie Clayton September 11, 2026
0 Comments
The Deity PR-2ii arrives with production firmwar...
12/09/2026
Blackmagic Design Announces Special Pricing for Ultra HD Products
Brie Clayton September 11, 2026
0 Comments
Now customers can afford to upgrade to Ul...
12/09/2026
Grass Valley EDIUS Future Assurance Program launched at IBC2026
Brie Clayton September 11, 2026
0 Comments
New program gives EDIUS customers access to...
12/09/2026
Berklee Students Develop New Ideas for Live Entertainment and Travel in London This summer, a group of music business students collaborated with Heathrow, Bri...
11/09/2026
Calrec will introduce two new products at IBC2026 (Stand 8.C47, RAI Amsterdam, September 11-14): the Type RT broadcast production console and the Apex M6 Modula...
11/09/2026
Grass Valley has announced AVORA, a standalone all-in-one live production solution launching at IBC2026 (Booth 9.A01 and IBC Future Tech Zone, Stand 14.C49, Sep...
11/09/2026
CAMB.AI is introducing its Streaming SDK and Streaming Dashboard at IBC2026, wit...
11/09/2026
EVS has announced XT-S, a software-defined server platform that runs multiple live production applications on a common hardware foundation. The platform debuts ...
11/09/2026
EKT is demonstrating a new Linux-based ATSC 3.0 set-top box at IBC2026. The second-generation product moves away from Android to reduce memory costs, with Linux...
11/09/2026
The Sennheiser Group will exhibit at IBC2026 (Hall 8, Booth D50, September 11-14...
11/09/2026
ESPN's Monday Night Football will open its 2026-27 season with a new renditi...
11/09/2026
Dalet has announced an integration of NVIDIA's Synthetic Video Detector AI model into Dalet Flex, enabling media organizations to identify potentially AI-ge...