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 ...

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...

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...

13/08/2026

Dalet Demonstrates the Future of AI-Orchestrated Live Spo...

Dalet, a leading technology and service provider for media-rich organizations, today announced its participation in the IBC2026 Accelerator Media Innovation Pro...

13/08/2026

dzjinius to showcase new dzjinius on-set application at I...

dzjinius, the all-in-one production management platform for the media and entertainment industry, will showcase its new application, dzjinius on-set , at IBC20...

13/08/2026

BCE Demonstrates Sovereign Cloud Media Workflows powered...

Broadcasting Center Europe (BCE), a leading European provider of media services, system integration and product development, will demonstrate an end-to-end sove...

13/08/2026

Clear-Com to Showcase Communications Solutions for Broadc...

Clear-Com is returning to IBC 2026, taking place September 11-14 in Amsterdam, Netherlands. At Stand 10.D29, Clear-Com will spotlight the award-winning FreeSpe...

13/08/2026

Leader to highlight advanced Test and Measurement solutio...

Test & measurement innovator, Leader Electronics of Europe, will showcase its comprehensive portfolio of Leader, PHABRIX and LeaderPhabrix test and measurement ...

13/08/2026

KRK Brings Advanced Wireless Control to Professional Monitoring With New V Series Five Studio MonitorsKRK Brings Advanced Wireless

KRK Brings Advanced Wireless Control to Professional Monitoring With New V Serie...

13/08/2026

Anthony Noack Captures Artist's Journey in Estonia with Blackmagic Design

Anthony Noack Captures Artist's Journey in Estonia with Blackmagic Design Brie Clayton August 12, 2026 0 Comments Solo filmmaker documents concept...

13/08/2026

ARRI Image Science makes its mobile debut in the HONOR Robot Phone

ARRI Image Science makes its mobile debut in the HONOR Robot Phone Brie Clayton August 12, 2026 0 Comments Hero image displays the HONOR Robot Phone, ...

13/08/2026

ASG Adds Eran Binyamin Zeitoun as Senior Technical Program Manager

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

Vinten To Feature Manual, Robotic Camera Support Offerings At IBC 2026

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

SMPTE Unveils IBC 2026 Plans

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

IP Showcase on the Water Announces Schedule for IBC 2026

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

Spectrum, Optimum Ink New Deals for News Carriage and Ads

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

IAB Tech Lab Updates Privacy Standards

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

Suitest Highlights New AI-Powered Device Testing and Qual...

Suitest's Test Automation Platform Simplifies Video Quality Assurance, Monitoring, and Device Certification Across the OTT Ecosystem At IBC2026, Suitest, a...

13/08/2026

Cinegy showcases powerful, agile, cost-effective media so...

Cinegy GmbH, the premier provider of software-defined television technology, will have its key software solutions ready to demonstrate at SET Expo 2026 (18 20...

13/08/2026

Scripps Research establishes endowed chair honoring Peter K. Vogt, influential pioneer in cancer research

Scripps Research has established the Peter K. Vogt Endowed Chair, a new faculty ...

13/08/2026

New research offers fresh insights for how to make better vaccines

LA JOLLA, CA-A vaccine's molecular structure plays a key role in determining how the immune system responds and prepares to protect the body from future exp...

13/08/2026

Class Is in Session: GeForce NOW Levels Up Linux, Chromebooks and More

GeForce NOW is giving cloud gaming an extra-credit upgrade just in time for back-to-school season. The native Linux app for GeForce NOW is officially out of be...

12/08/2026

Op-Ed: The Versioning Playbook - How Rights Holders are Getting More From Live Events

Traditional live sports production has focused on creating the best possible pro...

12/08/2026

IBC 2026: FOR-A to Demonstrate Production and Processing Solutions

FOR-A will showcase a range of broadcast and production products at IBC2026 (Stand 2.B53, Amsterdam RAI, September 11-14), including software-based switching, A...

12/08/2026

IBC 2026: AMWA and EBU to Demo NMOS BCP-008 Multi-Vendor IP Status Reporting

The Advanced Media Workflow Association (AMWA) and EBU will host live demonstrations of NMOS BCP-008 Minimum Status Reporting at IBC2026 (September 11-14) on th...

12/08/2026

IBC 2026: Dalet Launches Solution Suites for Media Production and Archive Management

Dalet has announced Dalet Solution Suites, a portfolio of cloud-native solutions...

12/08/2026

Net Insight Enables Centralized Remote Production of Blinkfestivalen 2026 for NRK

Net Insight has announced that DMC Production Norway has selected its Open Live ...

12/08/2026

Zixi Appoints Alyson Stewart as Senior Director of Sales

Zixi has appointed Alyson Stewart as Senior Director of Sales. Stewart will be responsible for direct sales and partnerships, with a focus on broadcasters, medi...

12/08/2026

LiveU Powers Host Broadcast Operations at 2026 Glasgow Games

LiveU's LU900Q intelligent production unit was deployed as part of the host broadcast operation for the Games in Glasgow (July 23-August 2, 2026). Host broa...

12/08/2026

Disney+ and ESPN Acquire Multi-Year Formula E Rights Beginning 2026/27 Season

Disney , ESPN, and Formula E have announced a multi-year deal bringing all Formula E races to Disney and ESPN in the U.S. and to Disney in most international...

12/08/2026

PSSI Launches X-LIVE Managed Service for Live Event Transmission

PSSI has launched X-LIVE, a managed service offering dedicated engineering resources and Appear encoding infrastructure for live event signal processing and tra...

12/08/2026

MoonPay X Games League Draws 18.3 Million Viewers in Inaugural Summer Season

The inaugural MoonPay X Games League Summer Season reached 18.3 million unique live viewers across three stops on ABC and ESPN, a 78.5% increase compared to the...

12/08/2026

IBC 2026: BBright Adds RIST Support to IP-Gateway

BBright will showcase an expanded IP-Gateway at IBC2026, adding support for all RIST profiles to its existing support for MPEG Transport Stream over IP with SMP...

12/08/2026

IBC 2026: BBright Adds EBU OGraf Graphics Support to UHD and ST 2110 Playout Platform

BBright will demonstrate EBU OGraf animated graphics support in its software-bas...

12/08/2026

Interra Systems to Showcase QC and Monitoring Solutions at SET Expo 2026

Interra Systems will demonstrate its ORION, BATON, BATON Captions, and VEGA solutions at SET Expo 2026 (August 17-20, Distrito Anhembi, S o Paulo) at partner Li...

12/08/2026

DPA Microphones Appoints Raul Contreras as West Coast Regional Sales Manager

DPA Microphones has appointed Raul Contreras as West Coast Regional Sales Manager. In the role, Contreras will oversee sales and customer relationships througho...

12/08/2026

Save the Date: SVG LIVE! Returns to LA Nov. 10 to Spotlight Sports & Entertainment Production

Live spectacles ranging from the Super Bowl and FIFA World Cup to the Oscars and...

12/08/2026

Love, Separation, and the Cost of Comfort in How to Divorce During the War

Writer-Director Andrius Bla evi ius and crew attend the premiere of How to Divorce During the War at The Ray Theatre on January 26, 2026, in Park City, UT. (P...

12/08/2026

SSL 360 gets a major update

Enhanced DAW & plug-in control for the UC1, UF8 and UF1 The software that powers SSL's range of control surfaces has just received a major update that d...

12/08/2026

Triton Audio launch the Tilt EQ

In-line preamp features one-knob EQ In addition to their range of in-line preamps, Triton Audio recently managed to squeeze a compressor into an enclosure t...

12/08/2026

AudioRoute from Arvital Audio

Captures system audio with or without a DAW Depending on your setup, capturing system audio in a DAW can be a tedious process, so much so that Arvital Audio...

12/08/2026

2026 NATIONAL NAIDOC AWARDS TO BROADCAST ON NITV LIVE AND DIRECT FROM MPARNTWE

2026 NATIONAL NAIDOC AWARDS TO BROADCAST ON NITV LIVE AND DIRECT FROM MPARNTWE 12 August, 2026 Media releases First Nations excellence will be celebrated l...

12/08/2026

More than six million sports fans stay with SBS for Tour de France and Tour de France Femmes Avec Zwift

More than six million sports fans stay with SBS for Tour de France and Tour de F...

12/08/2026

Nielsen Introduces Groundbreaking Streaming Ad Measurement in Brazil

Nielsen is cementing Digital Ad Intel as the new go-to currency for digital ad intelligence in Brazil-now with streaming monitoring in the mix. S o Paulo, Augu...

12/08/2026

LPTV Advocates Petition FCC for Voluntary 5G Broadcasts

Share Copy link Facebook X Linkedin Bluesky Email...

12/08/2026

Tubi Media Group Inks Content Discovery Deal with Gracenote

Share Copy link Facebook X Linkedin Bluesky Email...

12/08/2026

Matrox Video Showcases IP-Based and Software-Defined Tech...

As Matrox Video celebrates 50 years of trusted innovation, the company will showcase its portfolio of interoperable IP technologies and software-defined innovat...

12/08/2026

SMPTE Showcases AI and Open Media Workflows and Industry...

SMPTE, the home of media professionals, technologists and engineers, today announced a program of expert-led sessions, professional workshops and networking eve...

12/08/2026

Berklee Announces Full Details for Inaugural Block Party, a Music Festival Next to Fenway Park

Berklee Announces Full Details for Inaugural Block Party, a Music Festival Next ...

12/08/2026

ACLU Requests ABC Station Probe Documents from FCC

Share Copy link Facebook X Linkedin Bluesky Email...