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...

11/02/2026

Clear-Com Powers TEDNext 2025 with Gen-IC Virtual Interco...

Clear-Com provided an advanced, IP-based communications infrastructure for TEDNext 2025, supporting production, media, and editorial teams with a highly flexib...

11/02/2026

Astera Releases QuikBeam - Versatile 200W Equivalent LED...

Astera introduces QuikBeam, the newest addition to its acclaimed Quik family of focusing LED Fresnels. This ultra-compact spotlight combines the equivalent powe...

11/02/2026

Rai Selects Imagine Selenio Network Processor for IP Migr...

Following a competitive public tender process, Rai (Radiotelevisione Italiana), the national public broadcasting company of Italy, has awarded Imagine Communica...

11/02/2026

DoPchoice to Intro SNAP RABBIT Octa 5 SNAPBAG

With Convertible Mount for NL Bowens & Aputure A Mounts See it at BSC Expo Stand #133 LCA DoPchoice continues to refine light shaping tools for professional LE...

11/02/2026

ZEISS Aatma -Contemporary Full Frame Primes with a Soulfu...

World Premiere at BSC Expo, Booth #319 Oberkochen/Germany, 10 February 2026 ZEISS introduces the new Aatma, set of nine high-end full frame T1.5 cinema primes ...

11/02/2026

NUGEN Audio Plug Ins Help Nick Fry Navigate the Demands o...

As Re-recording Mixer and Head of Sound at The Farm, one of UK's leading post-production facilities, Nick Fry has built his career on making stories sound a...

11/02/2026

iSpot Introduces Agentic AI Platform iSpot SAGE

Share Copy link Facebook X Linkedin Bluesky Email...

11/02/2026

NBC Sports Regional Sports Networks Taps Sportradar for NBA Coverage

Share Copy link Facebook X Linkedin Bluesky Email...

11/02/2026

MLB.TV Launches on ESPN

Share Copy link Facebook X Linkedin Bluesky Email...

11/02/2026

Super Bowl LX Attracts Nearly 125 Million U.S. Viewers

Share Copy link Facebook X Linkedin Bluesky Email...

11/02/2026

Graduate Spotlight: Gabrielle Rodriguez

Graduate Spotlight: Gabrielle Rodriguez The educator, who grew up in the Philippines, shares how shes bringing what she learned at Berklee back home. Februar...

11/02/2026

Blast off with the launch of new RT KIDSjr animated series Adam Loves Adventure

The intergalactic children's show starring Adam King will premiere on 14 February on RT 2, RT KIDSjr and RT Player The Late Late Toy Show star Adam King...

10/02/2026

ESPN's Super Bowl Week Studio Footprint Doubles as a Bridge to the Network's First Super Bowl Coming in 2027

From San Fran to Santa Clara down to Los Angeles, ESPN celebrates the Big Game w...

10/02/2026

Canon Novel Lenses Shine Among More Than 115 Canon Lenses at Winter Games

A team of broadcast engineers and experts dispersed across Northern Italy help broadcasters and still photographers keep shooting OBS has put new imaging techn...

10/02/2026

For Karl Malone and the NBC Olympics Audio Team, Dolby Atmos Is Front, Center, and All Around

If you can have the best pictures and the best sound quality for these global ev...

10/02/2026

SVG Sit-Down: Quickplay's Paul Pastor on the Growth of Vertical Video Beyond Social Media

Disney+ will add vertical video within its app this year after ESPN introduced V...

10/02/2026

GameChanger Brings 1080HD Streaming to Youth Sports Production

GameChanger today unveiled the most comprehensive product update in its 15-year history, marking a major step forward in how families, athletes, coaches, fans, ...

10/02/2026

Editor-Approved Audiobooks Inspired by the Gothic Spirit of Wuthering Heights'

With a new film adaptation of Wuthering Heights arriving just in time for Valent...

10/02/2026

Spotify Reports Fourth Quarter 2025 Earnings

Today, we announced our fourth quarter 2025 earnings, marking a strong finish to the year with exceptional user growth and continued momentum across the busines...

10/02/2026

Spotify rapporterar resultat fr fjrde kvartalet 2025

I dag redovisar vi v rt resultat f r fj rde kvartalet 2025, vilket markerar ett starkt avslut p ret med robust anv ndartillv xt och fortsatt momentum i hela v...

10/02/2026

World-first opt-out function now fully integrated on SBS On Demand

World-first opt-out function now fully integrated on SBS On Demand 10 February, 2026 Media releases SBS has announced a suite of audience-first enhancement...

10/02/2026

L3Harris Signs Agreement with Kingdom of Saudi Arabia for Advanced Defense Collaboration

Jennifer Hanley, Vice President, International, L3Harris, signed a Memorandum of...

10/02/2026

Clear-Com Powers TEDNext 2025 with Gen-IC Virtual Intercom

eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......

10/02/2026

Gracenote Renews Partnership with Google for the AI Age

NEW YORK February 10, 2026 Nielsen's Gracenote, the global leader in entertainment metadata, today announced the continuation of its partnership with Go...

10/02/2026

YouTube TV Launches New $64.99 a Month Sports Plan

Share Copy link Facebook X Linkedin Bluesky Email...

10/02/2026

Zeiss Introduces Aatma Prime Lenses

Share Copy link Facebook X Linkedin Bluesky Email...

10/02/2026

From the Research Lab to the Production Studio - NUGEN Di...

Clear dialogue has long been one of the biggest pain points in post-production. From complex mixes to unpredictable playback environments, intelligibility somet...

10/02/2026

Trump Backs Nexstar-Tegna Deal

Share Copy link Facebook X Linkedin Bluesky Email...

10/02/2026

FCC Managing Director Mark Stephens to Retire

Share Copy link Facebook X Linkedin Bluesky Email...

10/02/2026

FCC's Gomez: Fewer Owners Means Fewer Voices

Share Copy link Facebook X Linkedin Bluesky Email...

10/02/2026

Study: OTA Broadcasts Offered Lowest Latency of Super Bowl LX Feeds

Share Copy link Facebook X Linkedin Bluesky Email...

10/02/2026

VEON's Kyivstar Expands Digital Healthcare Services in Ukraine with Tabletki.ua Acquisition

10 Feb 2026 VEON's Kyivstar Expands Digital Healthcare Services in Ukraine ...

10/02/2026

Tonys Chocolonely wrestles cocoa exploitation in first-ever TV commercial, Theres Fight in Every Bite

The new TV campaign is set to air on Sky from 10th February - 6th April inviting...

10/02/2026

Red Seat Ventures Acquires Leading Podcast Subscription Platform Supercast

Red Seat Ventures Acquires Leading Podcast Subscription Platform Supercast Los Angeles, CA, February 10, 2026 - Red Seat Ventures, a division of Fox Corporati...

10/02/2026

Arvato Systems Celebrates a Decade of Innovation and Customer Success in the Digital Supply Chain

Arvato Systems Celebrates a Decade of Innovation and Customer Success in the Dig...

09/02/2026

SMT Brings New AR Weather Visualization, Refreshed Telestration to NBC Sports' Super Bowl Game Coverage

A look inside the tech, tools, and team that make the Super Bowl into true eye c...

09/02/2026

NEP's TFC Infrastructure, Supershooter 71 Power NBC Sports' IBC-Style' Super Bowl LX Infrastructure

Software-defined IP backbone and centralized signal-control hub redefine champio...

09/02/2026

From Alcatraz to an Olympics Handoff at Midfield, NBC Sports Expands Super Bowl Pregame Into Bay Area-Wide Celebration

Broadcasters continue to raise the bar when it comes to producing an eye-catchin...

09/02/2026

NBC Sports Builds Its Super Bowl LX Game Broadcast on Sunday Night Football' Engine - and Pushes It Further

Game coverage will feature nearly 100 cameras, a deep well of replay channels, a...

09/02/2026

Sony at Super Bowl LX: Audio, Imaging, and Tracking Tech Power NBC's Broadcast, Officiating Ops, Sideline Comms, and More

Sony's imaging tech is the literal lens through which the spectacle and exc...

09/02/2026

How OBS Uses FPV Drones, 360-Degree Replay To Enhance Storytelling

The technologies, including AI, allow fans at home to see the athletes, feel' the speed, and sense the skill With four years from one Winter Games to the ...

09/02/2026

Sportradar To Power NBA Fan Experiences Across NBC Sports RSNs through Advanced Data and Enhanced Visual Storytelling

Sportradar AG announces a multi-year agreement with NBC Sports Regional Sports N...

09/02/2026

New York Festivals Advertising Awards Embraces Sports for 2026 Competition

New York Festivals Advertising Awards proudly unveils a dynamic new Sports Category Group, expanding its 2026 competition to recognize the powerful role sports ...

09/02/2026

FanDuel TV Calls Super Bowl LX Media Row Home for Up & Adams', Social Media Content

Devlin Design Group, Filmwerks, LTN pitched in on the four-day effort The site ...

09/02/2026

Super Bowl LX In Review: All of SVG's Onsite Coverage From The Bay Area

Despite the game taking place right in the middle of NBC Sports' busiest month ever, its production and operations teams pulled off a massive Super Bowl LX ...