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...

01/09/2026

Nielsen Announces New Local Methodology Enhancements

New York August 31, 2026 Nielsen is announcing four new local methodology enhancements that will be activated into Local TV currency data starting today, Au...

01/09/2026

Broadcasters Gain Flexibility in Pursuit of 5G Multicasting

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

Winning the Fight Against Churn

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

How Multiviewers Are Evolving Into Information Hubs'

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

IBC2026: New Audio Tools on Tap from Telos Alliance

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

SMPTE Roadshow to Examine Media Infrastructure at IBC2026

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

Roku Debuts Its First 4K OLED TVs

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

Mark Vinten Joins ASG's Audio and Postproduction Team

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

Pronology Introduces New StreamFile Core Capabilities at...

Pronology, a developer of cutting-edge broadcast workflow solutions, showcases the newest capabilities for its StreamFile Core platform at the 2026 IBC Show (S...

01/09/2026

PROTON Unveils Next-Generation FLEXY Camera at IBC 2026

PROTON Unveils Next-Generation FLEXY Camera at IBC 2026 Brie Clayton September 1, 2026 0 Comments 10-metre serialised coax unlocks new perspectives an...

01/09/2026

Hulu Drama The Season Graded with DaVinci Resolve Studio

Hulu Drama The Season Graded with DaVinci Resolve Studio Brie Clayton September 1, 2026 0 Comments Senior Colorist Mark Kueper of Picture Shop crafts ...

01/09/2026

Pluxbox Launches CoreOC to Transform Mission-Critical Media Operations

Pluxbox Launches CoreOC to Transform Mission-Critical Media Operations Brie Clayton September 1, 2026 0 Comments A vendor-agnostic operational control l...

01/09/2026

Layercake Appoints Former FOX SPORTS and Network Ten COO...

Layercake, the company behind the intelligent media workflow platform Streamcake, today announced the appointment of Jon Marquard as Director and Chairperson. T...

01/09/2026

Actus Digital Unveils the Future of Broadcast Monitoring...

Actus Digital, a LiveU company, will unveil the next generation of its Actus X platform at IBC2026 on LiveUs Stand 7.C24, demonstrating how broadcasters can sim...

01/09/2026

Studio Automated and Egripment Power the Tactical Feed fo...

Broadcast Solutions, a leading systems integrator and provider of innovative solutions for the broadcast media industry, delivered transformational technology a...

01/09/2026

OTV turns to Quortex to replace legacy video hardware

Quortex, the intelligent video technology company carved out from Synamedia by Lumine Group, today announced that Odisha Television Network (OTV), the leading r...

01/09/2026

Zixi and Ateme Deepen Strategic Alliance to Accelerate Hy...

Zixi and Ateme today announced an expanded strategic partnership to help broadcasters and content owners accelerate the transition from satellite to resilient I...

01/09/2026

CBS Boston Debuts New AR/VR Technology-Driven Studio

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

FCC Raises Regulatory Fees for TV Stations

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

For-A Introduces Go Vertical! AiDi and AiDi Sports Hub

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

T-Mobile Continues to Dominate Ooklas Fixed Wireless Speed Tests

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

Carr Announces New FCC Enforcement Bureau Chief

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

Experience La Dolce Vita with Donal's Italian Kitchen

Join Donal Skehan in discovering the best of everyday Italian cooking in brand new series, airing Wednesday 2 September In this brand-new series, Donal's I...

01/09/2026

RT Supporting the Arts is supporting 28 cultural events nationwide this September

RT Supporting the Arts is delighted to spotlight a diverse range of arts, cultu...

31/08/2026

Pixotope Consolidates Virtual Production Tools into Unified Platform

Pixotope Technologies has announced a unified platform offering all Pixotope capabilities across three editions, available with the Pixotope 26.3 release in Q3 ...

31/08/2026

Elektron update Tonverk OS

Sampler gains Overbridge multitrack streaming Elektron's polyphonic sampler, the Tonverk, has just received an OS update that introduces multitrack stre...

31/08/2026

Thorus XT from UVI

Popular chorus plug-in gains second engine UVI's latest plug-in offers a fresh new take on their best-selling chorus effect, combining a pair of engines...

31/08/2026

Optus commits 3% of consumer brand spend to First Nations media in new landmark partnership with NITV

Optus commits 3% of consumer brand spend to First Nations media in new landmark ...

31/08/2026

FingerWorks Telestrators Expands European Presence Throug...

FingerWorks Telestrators, the industry leader in software-based telestration and live sports analysis solutions, announces its new partnership with Broadcast R...

31/08/2026

ARISDA Bridge Launches: DaVinci Resolve Timecode, Studio Clock, and Work-Time Tracking in One Windows App

ARISDA Bridge Launches: DaVinci Resolve Timecode, Studio Clock, and Work-Time Tr...

31/08/2026

Short Film All That's Left Shot with URSA Cine 12K LF

Short Film All That's Left Shot with URSA Cine 12K LF Brie Clayton August 31, 2026 0 Comments Intimate drama edited and graded in DaVinci Resolve ...

31/08/2026

Bridge Technologies Announces Support for Blackmagic IP10 Codec

Bridge Technologies Announces Support for Blackmagic IP10 Codec Brie Clayton August 31, 2026 0 Comments Both booths will showcase each other's tec...

31/08/2026

Creative COW Roundtable, August 23, 2026- AEAI

Creative COW Roundtable, August 23, 2026- AEAI Brie Clayton August 31, 2026 0 Comments COWs from around the world assemble to discuss Using AI to Beat...

31/08/2026

Homecoming Artist Spotlight: Susan Tedeschi

Homecoming Artist Spotlight: Susan Tedeschi The Grammy-winning singer and guitarist talks about finding her voice at Berklee ahead of her Homecoming performan...

31/08/2026

HC2 Meets with FCC Legal Advisor in Push for 5G Broadcasting

Share Copy link Facebook X Linkedin Bluesky Email...

31/08/2026

Tribeca Studios Releases First-Look Trailer For Tribeca 25, The New Documentary From Matt Tyrnauer

August 31st, 2026 Press Materials Here TRIBECA STUDIOS RELEASES FIRST-LOOK TRA...

31/08/2026

Digicel Pacific Selects Techtel for PNG Digital TV Head-End Transformation

Digicel Pacific Selects Techtel for PNG Digital TV Head-End Transformation 31 Aug Written By Mal Chandler Sydney, 31 August 2026 - Techtel has been appointe...

30/08/2026

Reason Studios launch Reason Free

Free collection includes 15 instruments Reason Studios have announced that they are making their popular Reason Rack plug-in free, and bundling it with a se...

29/08/2026

SSL to introduce O-Series V2.0

Odyssey & Oracle console software update incoming With a second console now joining their O-Series, SSL have announced the upcoming launch of O-Series V2.0,...

29/08/2026

Scripps Hires NBCU Sales Veteran Jen Carfley

Share Copy link Facebook X Linkedin Bluesky Email...

29/08/2026

Comcast's Universal Ads Taps Tracer to Upgrade Operations

Share Copy link Facebook X Linkedin Bluesky Email...

29/08/2026

PlayBox Technology to Showcase the Future of Media Orches...

PlayBox Technology is heading to IBC2026 with a clear message: the future of broadcast and streaming is not about replacing everything it is about making what...

29/08/2026

Berklee Announces Fall 2026 Signature Series

Berklee Announces Fall 2026 Signature Series This years concerts feature MonoNeon, Brandon Woody, Marcus Gilmore, and Caroline Davis, alongside Berklee Asia R...

28/08/2026

CBS L.A. Runs Two Hot Control Rooms, Dual Broadcasts for Rams-Chargers Preseason Game

KCBS takes the Chargers side, KCAL takes the Rams - with feeds out to 18 partner...

28/08/2026

Buddy Turns Childhood Comfort into Midnight Terror

(L-R) Topher Grace, Cristin Milioti, Delaney Quinn, Casper Kelly, and Keegan-Michael Key pose with the character Buddy at the Buddy Premiere during the 2026 S...

28/08/2026

IK Multimedia announce Sinphonica Maestosa Strings

The Italian orchestra, reimagined IK Multimedia have announced the upcoming launch of Sinphonica, a new family of Italian orchestral instruments designed f...

28/08/2026

Voxis from CEDAR Audio

Voice-isolation plug-in boasts sub-10ms latency Launched in 2025, CEDAR Audio's Icons range was created with the aim of bringing the company's renow...