
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 $268m and reduce potential mobile subscribers by 950,000.
Kenya is considered a front runner in digital transformation in the region. To maintain this position, the government must strike the right balance between tax revenue maximisation, and incentivising investment and economic growth, added Akinwale Goodluck.
The report, Mobile Taxation in Kenya: Accelerating Digital Development', is available at www.gsma.com/mobile-taxation-in-kenya
-ENDS-
About the GSMA
The GSMA represents the interests of mobile operators worldwide, uniting more than 750 operators and nearly 400 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organisations in adjacent industry sectors. The GSMA also produces the industry-leading MWC events held annually in Barcelona, Los Angeles and Shanghai, as well as the Mobile 360 Series of regional conferences.
For more information, please visit the GSMA corporate website at www.gsma.com. Follow the GSMA on Twitter: @GSMA.
Media Contacts:
For the GSMA
GSMA Press Office
pressoffice@gsma.com
Like what you read? Share.
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
07/07/2026
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
07/07/2026
New Kessler 10 data now available in Nielsen CMI gives brands a deeper view of h...
07/07/2026
New Nielsen Ad Intel and CMV data reveals rising competition in Australia's ...
07/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/07/2026
Riedel Communications and ARRI played a key role in one of the most technically ambitious Eurovision Song Contest productions to date. For the first time in the...
07/07/2026
Berklee Valencia Honors Eric Whitacre at the 2026 Commencement Ceremony The Grammy-winning composer was celebrated alongside this years cohort of masters degr...
07/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/07/2026
The appointment will drive growth and innovation across the Media Business Unit
Fincons Group, a leading IT business consultancy and systems integrator company...
07/07/2026
International broadcast and streaming expert Big Blue Marble has announced a multi-month Proof of Concept (PoC) for Media over QUIC (MoQ) during a major interna...
07/07/2026
Test & measurement innovator, Leader Electronics of Europe, is proud to announce that two of its leading products, the PHABRIX Qx rasterizer and LeaderPhabrix L...
07/07/2026
Clear-Com announced that Ross Production Services (RPS), a leading provider of mobile production solutions for live events and broadcasts, has standardized on ...
07/07/2026
LiveU redefined live newsgathering with the invention of cellular bonding. At IBC2026, Stand 7.C24, the company will show how that foundation is evolving into t...
07/07/2026
LucidLink, a leader in cloud-based file services for content creators, today announced an enhanced workflow integration between LucidLink and Adobe Frame.io tha...
07/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/07/2026
New appointments to Screen Australia board 7 July 2026
The Albanese Labor Government has made new appointments to the Screen Australia board.
Dr Tania Chamber...
07/07/2026
The right team. The right time.' How The Killings at Parrish Station stuck t...
07/07/2026
Berklee College of Music Alum and Faculty Perform at Boston Public Library's...
07/07/2026
To Whom It Concerns RT today confirmed that Patrick Kielty is to extend his contract as host of The Late Late Show.
Last season, the world's longest-runn...
07/07/2026
Max single-threaded CPUs at scale are a new category of CPUs built for the agentic AI era.
Across the creation and deployment of an agentic system, the CPU is...
07/07/2026
Scripps Research scientists train the immune system to make antibodies against numerous HIV strains Preclinical findings mark progress toward a long-sought vacc...
06/07/2026
Long-developed relationships and informal access, three production models, and c...
06/07/2026
The deal follows Lumine's recent acquisition of Synamedia's video-networ...
06/07/2026
This former SportsCenter producer is shaping local-team studio coverage to surro...
06/07/2026
IMS Productions and FOX Sports deployed more than 100 cameras, 32 onboard feeds,...
06/07/2026
Lumine Group Inc. has announced the completion of its acquisition of the Video Network Business from Synamedia. The business will operate as a standalone compan...
06/07/2026
NASCAR has announced a content and commercial partnership with Motorsport Network, a motorsports and automotive media platform, to distribute NASCAR original co...
06/07/2026
Versant Media Group has announced a definitive agreement to acquire Full Swing, a sports technology company, from Bruin Capital and a group of minority investor...
06/07/2026
DAZN has announced global broadcast rights to 3ICE, a professional hockey format featuring three skaters and a goalkeeper per side, with no power plays or offsi...
06/07/2026
Bundle gains 100 new synths & more
Synth Anthology 5 the largest and most feature-packed edition of UVI's hardware synth emulation bundle, bringing toge...
06/07/2026
Available now via free firmware update
MOTU have just announced that three of their popular audio interfaces now boast official Milan Certification. The 16A...
06/07/2026
Rohde & Schwarz completes Hunter Preliminary Design Review for the Integrated Co...
06/07/2026
The R&S IMAGER from Rohde & Schwarz uses millimeter wave imaging to inspect the ...
06/07/2026
The National Film and Video Foundation (NFVF), an agency of the Department of Sp...
06/07/2026
Digital Domain Appoints Industry Veteran Patrick Davenport as Executive Vice Pre...
06/07/2026
Gravity Media USA appoints Brittney Boston as Head of Business Development
Brie Clayton July 6, 2026
0 Comments
The strategic new appointment supports...
06/07/2026
Remote Editing Without Cloud Storage in Resolve
Michael Cioni July 6, 2026
0 Comments
This is a step-by-step guide that demonstrates how to setup your...
06/07/2026
Automatic Caption Translation in Adobe Premiere Pro
Colin Smith July 6, 2026
0 Comments
Here I showcase the innovative automatic caption translation f...
06/07/2026
Flavor's First Ever Managing Director Neal Cohen Retires; Longstanding Execu...
06/07/2026
How Adam Rosenwach Pivoted from Music to Medtech Without Missing a Beat What do the rehearsal room and the boardroom have in common? More than you might think...