
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 ...
09/10/2026
September 10 2026, 06:00 (PDT) Dolby Expands Dolby OptiView Platform with New Capabilities at IBC 2026
New Sports Intelligence helps providers better unders...
07/10/2026
Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...
21/09/2026
Manifold Technologies, developer of software-defined, FPGA-accelerated infrastructure for live production, has named Ryhaan Williams as Chief Commercial Officer...
21/09/2026
Studio Network Solutions (SNS) has won Best Journal Article at the 2026 IAMT Impact Awards for What Video Editors Need When Everything Is Changing Around Them,...
21/09/2026
Major League Wrestling (MLW) has announced a streaming distribution agreement with Tubi for its weekly series MLW FUSION. Beginning September 17, new episodes w...
21/09/2026
Disney Entertainment has announced that Adam Smith has been named Chairman, Direct-to-Consumer, with responsibility for Disney and Hulu including product, engi...
21/09/2026
United Airlines and DISH have announced an agreement to bring live professional ...
21/09/2026
SES and JioStar have announced a multi-year agreement under which SES will provide satellite distribution services for JioStar's television channel portfoli...
21/09/2026
The Detroit Red Wings have announced details for their inaugural season on Detro...
21/09/2026
Manifold Technologies has appointed Ryhaan Williams as Chief Commercial Officer for North America, effective October 1, 2026. Based in Jacksonville, Florida, Wi...
21/09/2026
Angels Broadcast Television (ABTV), the local television home of the Los Angeles...
21/09/2026
The 2026 US Open Tennis Championships marked a year of change with respect to TV...
21/09/2026
Behind The Mic provides a roundup of recent news regarding on-air talent, includ...
21/09/2026
Drum-tuning app now available on Android
RT60 describe their iDrumTune app as the world's most advanced, accurate and intelligent system for assisting ...
21/09/2026
Innovative multiband auto-panner introduced
SoundGhost's latest plug-in takes an innovative approach to auto-panning, and divides incoming signals into ...
21/09/2026
We check out the M5 Max-equipped model The same, but different. The new Mac Studio models feature M5 Max and M5 Ultra silicon, dramatically improving the perf...
21/09/2026
From Graphic Novel to 30-Minute Animated Film: What I Learned Building an AI-Ass...
21/09/2026
Liam Hopkins Builds Recording Studio with Blackmagic Design
Brie Clayton September 20, 2026
0 Comments
Video complements audio production with music v...
21/09/2026
Indigenous screen organisations from Canada, Aotearoa New Zealand and Australia ...
21/09/2026
RT celebrates Irish Sign Language Awareness Week 2026
Special programmes across RT television, radio and online, plus special initiatives
#ISL #IDSL #IWDP26...
21/09/2026
AI security is an engineering problem. That means defined security requirements,...
21/09/2026
Clean energy isn't hard to come by, but the pace of large-scale adoption has historically been slow due to bottlenecks - including out-of-date infrastructur...
20/09/2026
Piano-playing singer-songwriter competition returns for fourth year
Casio have officially revealed the list of 16 finalists who have earned their place in t...
20/09/2026
COW Jobs: Video Editor, Motion Designer - Remote, PT, 6 Months
Brie Clayton September 20, 2026
0 Comments
Video Editor + Motion Designer (Remote | PT ...
19/09/2026
Three new rackmount power conditioners introduced
Yorkville Sound have announce the upcoming launch of three new RPC rackmount power conditioners from ART P...
19/09/2026
September 15, 2026
AMSTERDAM, SEPTEMBER 2026 - Colorfront (colorfront.com), the Academy and Emmy Award-winning developer of high-performance cinema mastering, ...
19/09/2026
Two High-Profile Professional Sports Franchises Renew creative.space Contracts with DigitalGlue
NFL team and Major League Soccer Club cite ease of use, secure ...
19/09/2026
Limited Edition Audio releases VoxSplit Pro for overlapping dialogue separation ...
18/09/2026
IBC 2026 Tech Moves Beyond the Gloss and Into the Rack If you spent any time in the halls of the RAI this year, you noticed a clear shift in conversation. The c...
18/09/2026
In-venue and creative video staffers at the professional and collegiate level ha...
18/09/2026
Qvest has appointed Jens Miedek as Senior Vice President Sales, Media and Entertainment. Before joining Qvest, Miedek spent 16 years at Riedel Communications an...
18/09/2026
Fonn Group has acquired full ownership of everviz, a cloud-native platform for interactive charts, maps, and data-driven graphics, and will rebrand it as Teikna...
18/09/2026
Other World Computing (OWC) has announced the acquisition of OpenDrives, a provider of software-defined video and rich media storage management solutions. The a...
18/09/2026
Kaltura and Verimatrix have announced a partnership integrating Verimatrix's Digital Rights Management and security capabilities into Kaltura's Cloud TV...
18/09/2026
The sixth edition of the World Nomad Games combined traditional sports, large-scale cultural performances, and some decidedly modern broadcast technology. Held ...
18/09/2026
DAZN and Super League Basketball (SLB) have extended their partnership for the 2026-27 season. Every Championship, Cup, and Play-Off fixture will be available l...
18/09/2026
Nielsen has announced that its Streaming Content Ratings (SCR) product will move from weekly to daily data delivery, with clients now receiving viewership data ...
18/09/2026
ESPN will present LALIGA's ElCl sico on ABC for the first time, with FC Barcelona vs. Real Madrid airing Sunday, October 25 at 4 p.m. ET. A one-hour pre-mat...
18/09/2026
The University of Pennsylvania's Division of Recreation and Intercollegiate ...
18/09/2026
The Charlotte Hornets have announced DAZN as their exclusive direct-to-consumer streaming partner for the 2026-27 NBA season. The service launches immediately, ...
18/09/2026
Broadcast sports' original medium will let drivers keep on hearing the plays thanks to a new bill set to pass the Senate....
18/09/2026
Fourteen iPhone 18 Pro devices - eight connected over a T-Mobile Private 5G Netw...
18/09/2026
The Minnesota Lynx have announced that their final local broadcast of the 2026 regular season will air free on FOX 9 following the shutdown of Victory . The Ly...
18/09/2026
Monumental Sports Network (MNMT) has announced that its Monumental+ streaming service is now available as a subscription through Prime Video, giving Capitals an...
18/09/2026
WTGL, the women's team golf league created by TMRW Sports in partnership with the LPGA, has announced its inaugural season schedule. The season premieres Su...
18/09/2026
Ratings Roundup is a rundown of recent ratings news and is derived from press re...
18/09/2026
Studio Network Solutions (SNS) has won Best Journal Article at the 2026 IAMT Impact Awards for What Video Editors Need When Everything Is Changing Around Them, ...
18/09/2026
10 new voice models join line-up
The latest expansion for IK Multimedia's AI-powered vocal-modelling software has arrived, delivering a set of 10 new vo...
18/09/2026
A day of hands-on synthesis, sound design & performance
On Saturday 26 September 2026, The Museum of Synthesisers will be hosting a full day of hands-on syn...