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...

16/02/2026

Live From NBA All-Star 2026: NEP Group Powers Game Capture With TFC Infrastructure, Specialty Cameras

The production infrastructure scaled seamlessly from regular-season games to the...

16/02/2026

Live From NBA All-Star 2026: NBC Sports' Ryan Soucy and Kim Titone on Ops for a New Era of NBA on NBC'

The operations team reimagined traditional workflows were reimagined and built a...

16/02/2026

Live From NBA All-Star 2026: NBA TV's New League-Run Era Debuts With Live Studio Shows

Once again an in-house operation, the league's network is producing shows fr...

16/02/2026

Live From NBA All-Star 2026: For NBA Broadcast Operations, There's a Lot of New'

The league is producing its first All-Star with NBC, Intuit Dome, and, once agai...

16/02/2026

Boland's Groundbreaking 12G 4K Video Wall

When a customer in London needed a 4K video wall that could take 12G input, the media company found no video wall suppliers that could meet their specs and time...

16/02/2026

NATO Upgrades Brussels HQ Broadcast Studio with Grass Valley Cameras

Grass Valley, a media and entertainment technology innovator, has won a competitive NATO-wide tender to provide the new camera system for NATO's main broadc...

16/02/2026

Comcast Business Powers February's Biggest Sports Moments

Comcast Business announces it is again partnering with NBCUniversal to architect and manage critical components of the linear and digital broadcast for three of...

16/02/2026

NBC Olympics on NEP's Critical Role for the 2026 Winter Olympics

Week two of the 2026 Milano Cortina Winter Olympics are underway and crucial to the NBC Sports efforts has been the NEP Group which is providing a full range of...

16/02/2026

Train Dreams, Sorry, Baby, Lurker, and Other Sundance Institute-Supported Wins at the 2026 Spirit Awards

The Film Independent Spirit Awards have officially switched things up. This Sund...

16/02/2026

SBS's Powerhouse Current Affairs Line-up is Back with the Conversations and Stories That Matter to You

SBS's Powerhouse Current Affairs Line-up is Back with the Conversations and ...

16/02/2026

L3Harris Receives New Contract to Power THAAD Interceptors

A THAAD interceptor is launched during a successful Missile Defense Agency intercept test (Photo Credit: Missile Defense Agency)...

16/02/2026

aconnic ramping up production for ACCEED 4104 10 Gigabit system for international markets

aconnic AG (ISIN: DE000A0LBKW6), Munich, is increasing capacity and ramping up p...

16/02/2026

Content Vault Expands Device Specific File Encryption to...

Content Vault, the patent-pending content security platform originally developed for the film, television and entertainment industries, has today announced a ma...

16/02/2026

Netflix Releases the Second Season of 'Gangs of Galicia' on April 3

Back to All News Netflix Releases the Second Season of Gangs of Galicia on April 3 Entertainment 16 February 2026 GlobalSpain Link copied to clipboard Wat...

16/02/2026

"Unscripted" Producer MEGUMI Signs Exclusive Partnership with Netflix

Back to All News "Unscripted" Producer MEGUMI Signs Exclusive Partnership with Netflix Entertainment 16 February 2026 GlobalJapan Link copied to clipboard ...

16/02/2026

RT announces the Appointments of new Clarity Correspondent and Policy & Analysis Correspondent

RT News & Current Affairs has today announced the new appointments of journalis...

16/02/2026

New Data Shows NVIDIA Blackwell Ultra Delivers up to 50x Better Performance and 35x Lower Costs for Agentic AI

The NVIDIA Blackwell platform has been widely adopted by leading inference provi...

15/02/2026

Live From NBA All-Star 2026: Entertainment Takes the Court in a Big Way

With new partnership between the league and NBC, workflows distinguish more between live, broadcast sound There'll be a lot new for the 75th NBA All-Star W...

15/02/2026

Live From NBA All-Star 2026: NBC Sports Director Pierre Moossa Previews NBC's Return to the Event

After 24-year absence, NBC Sports returns to NBA All-Star Weekend with unique ca...

15/02/2026

Live From NBA All-Star 2026: Peacock, NBC Sports Offer Viewers a Front-Row Seat With Courtside Live'

New to NBA coverage, the viewer experience offers several angles in addition to ...

15/02/2026

Live From NBA All-Star 2026: NBC Sports Returns With Plenty of Tech Toys in Tow

Coverage features 4X-slo-mo Supracam and Steadicam, Nucleus 4K cameras, closer play-by-play angle, 10 player mics NBC Sports is in the midst of its first NBA A...

14/02/2026

Cineverse Acquires TV Monetization Platform IndiCue

Share Copy link Facebook X Linkedin Bluesky Email...

14/02/2026

ESPN's Audiences for College Basketball On Track for Major Growth

Share Copy link Facebook X Linkedin Bluesky Email...

14/02/2026

TCL Display Technologies Deployed at Winter Olympics

Share Copy link Facebook X Linkedin Bluesky Email...

14/02/2026

Boston Conservatory Orchestra Helps Peter and Leonardo Dugan Complete Their Dream Piece

Boston Conservatory Orchestra Helps Peter and Leonardo Dugan Complete Their Dre...

13/02/2026

OBS Accelerates Shift to Cloud

Olympic Broadcasting Services (OBS) has provided an update on its adoption of the cloud as it continues on its journey to fully migrate to IT-based systems by 2...

13/02/2026

France Tlvisions Launches France 2 UHD with Dolby Vision and Dolby Atmos to Max out AC-4 Experiences for Winter Olympics Fans

France T l visions has successfully launched France 2 UHD featuring Dolby Vision...

13/02/2026

OBS Expands Athlete Moment,' Family Reunions to Capture Human Side of Winter Games

Partnering with Worldwide Olympic Partner TCL, OBS deploys connected Athlete Mom...

13/02/2026

Men's Figure Skating Photo Gallery

The men's figure skating long-form program is tonight, and it promises to be an exciting night for fans in the stands, fans at home, and even the production...

13/02/2026

Entertainment Takes the NBA Court in a Big Way

With new partnership between the league and NBC, workflows distinguish more between live, broadcast sound There'll be a lot new for the 75th NBA All-Star W...

13/02/2026

SVG GameDay, Episode 3: Sean Tabler - Producing Hockey in the City of Angels

In-venue and creative video staffers at the professional and collegiate level have one major thing in common: the intensity and attention to detail ramps up dur...

13/02/2026

Teradek Introduces RF-X, Revolutionizing Mission-Critical Signal Redundancy

Teradek announces the launch of RF-X Auto Switcher, a revolutionary appliance designed to deliver flawless, uncompromised signal integrity for the world's m...

13/02/2026

Synamedia & Globecast Selected for FA Cup Cloud Distribution

Globecast and Synamedia announces that Pitch International (Pitch), the leading London-based sports marketing agency, has gone live with cloud-based distributi...

13/02/2026

Ratings Roundup: NBC Sports' Legendary February Hits Record Viewership Levels

Ratings Roundup is a rundown of recent rating news and is derived from press rel...

13/02/2026

NBC Olympics' Amy Rosenfeld on the Drone Craze, Friends & Family Moments, Stamford's Role for Milano Cortina

Far from the action in the snow and on the ice, the team controls the production...

13/02/2026

2026 Daytona 500: FOX Sports' Mike Davies, George Grill on Working Within an IP-Based Compound, Solving the Ops Puzzle of the Super Bowl of Racing

The Daytona 500 is called The Super Bowl of Racing for a reason. Whether it's the culmination to five days of action on the track, the sheer size and scop...

13/02/2026

OBS Expands AI-Powered Content Workflows

For the Milano Cortina Games, Olympic Broadcasting Services (OBS) is delivering more than 6,500 hours of content, with more than 900 hours of live action, sprea...

13/02/2026

NBC Sports Director Pierre Moossa Previews NBC's First NBA All-Star Production in 24 Years

After 24-year absence, NBC Sports returns to NBA All-Star Weekend with unique ca...

13/02/2026

Film Festival Watch: 18 Sundance Institute-Supported Projects To Watch at the 2026 Berlin International Film Festival

By Jessica Herndon We may have just wrapped an unforgettable 2026 Sundance Film...

13/02/2026

Give Me the Backstory: Get to Know Amanda Kramer, the Writer-Director Behind By Design

By Jessica Herndon One of the most exciting things about the Sundance Film Fest...

13/02/2026

Women in Podcasting Craft New Connections at Spotify's Galentine's Day Celebration in LA

This Wednesday in Los Angeles, Spotify brought together a group of podcast creat...

13/02/2026

Spotify and LoveShackFancy Bring Galentine's Glam to NYC, Featuring Special Performance by Joshua Basset

Yesterday, Spotify and LoveShackFancy hosted a Galentine's and Gents Lunch a...

13/02/2026

L3Harris Successfully Completes First Phase of P25 Transition for Florida SLERS

The upgrade to a Project 25 network provides state agencies communicating on the Statewide Law Enforcement Radio System flexibility to tailor the network to the...

13/02/2026

Riedel Opens Kuala Lumpur Office to Strengthen Global 24...

Riedel Communications has officially opened a new office in Kuala Lumpur, Malaysia, marking a strategic expansion of its global Customer Success and IT software...

13/02/2026

ES Broadcast Hire duo celebrate 10-year anniversary with...

Two of ES Broadcast Hire's longest-serving employees recently celebrated a decade working for the company. Annie Breislin, Operations Manager, and Charles ...