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 ...

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...

04/08/2026

Dalet Announces Commercial Availability of Dalia, Bringing Media-Aware Agentic AI to Enterprise Productions

Dalet, a leading technology and service provider for media-rich organizations, t...

08/07/2026

Aqueduct Racetrack Goes Silent

The end of the Big A' marks the demise of one more iconic sports venue and its signature sound After 132 years as one of the preeminent horse-racing track...

08/07/2026

Memphis Athletics, Learfield Continue Long-Term Partnership

Memphis Athletics and Learfield have signed a long-term renewal to their 25-year relationship, which sees Learfield's Tiger Sports Properties continue repre...

08/07/2026

T-Mobile Brings ABS Challenge System, 5G Batting Practice Cams to 2026 MLB All-Star Game in Philadelphia

MLB All-Star Week returns to Philadelphia for the first time in 30 years as Amer...

08/07/2026

SVG Enterprise Launches Inaugural Enterprise Video Summit, Oct. 19 in New York

Former Wall Street Video event expanded to include all Enterprise sectors SVG Enterprise has announced the inaugural Enterprise Video Summit, taking place Oct....

08/07/2026

Wrigley Field Revamp: Chicago Cubs Upgrade LED Videoboards To Match New 1080p Control Room

An offseason project enhanced eight video displays around the venue in time for ...

08/07/2026

A Beacon on Biscayne Bay: Miami Heat Reflect on Ambitious Renovation at SVG Venues & Teams Summit

Kaseya Center has a ton of new features that weren't available to the indust...

08/07/2026

FIPRESCI Establishes Jury at Sundance Film Festival

The International Federation of Film Critics (FIPRESCI) and the Sundance Film Festival are pleased to announce the establishment of a FIPRESCI jury beginning wi...

08/07/2026

Universal Audio introduce Black Box HG-2 & elysia karacter

Latest analogue-emulation plug-ins revealed Universal Audio have just added two new analogue-emulation plug-ins to their DSP-powered UAD line-up. Developed ...

08/07/2026

Pitch Innovations release Loop2Kit

Turn any audio loop into a playable kit Pitch Innovations have recently introduced an interesting new tool that's capable of creating playable kits from...

08/07/2026

MonkeyC update Rando sampler plug-in

Adds new keyboard-split function MonkeyC have recently launched an update that overhauls their powerful software sampler. Described as the sampler that mad...

08/07/2026

Strymon unveil the TimeLine MX

Four new delay algorithms & dual-engine functionality Strymon have just announced that the much-anticipated MX version of their hugely popular delay pedal i...

08/07/2026

Well over half of Australia have tuned in to watch the FIFA World Cup on SBS

Well over half of Australia have tuned in to watch the FIFA World Cup on SBS 7 July, 2026 Media releases Australia's Round of 32 match against Egypt a...

08/07/2026

SBS and Koorie Heritage Trust announce three-year partnership to celebrate First Nations cultures and communities

SBS and Koorie Heritage Trust announce three-year partnership to celebrate First...

08/07/2026

Rohde & Schwarz and China Mobile Research Institute jointly demonstrate generative AI user experience testing

Rohde & Schwarz and China Mobile Research Institute jointly demonstrate generati...

08/07/2026

Fox TV Stations Bypass Satellite for Live Game Show Run

Share Copy link Facebook X Linkedin Bluesky Email...

08/07/2026

Fox Television Stations Extreme Reach and LTN Bring Live...

Collaboration demonstrates how managed IP distribution and cloud-based syndication workflows can support live television at national scale Fox Television Stati...

08/07/2026

New ARRI ALEXA 35 Live Xtreme camera seamlessly delivers up to 8x HFR via SDI for live productions

New ARRI ALEXA 35 Live Xtreme camera seamlessly delivers up to 8x HFR via SDI fo...

08/07/2026

Did You Know? Redshift for Cinema 4D: The Power of the Distance Node

Did You Know? Redshift for Cinema 4D: The Power of the Distance Node Marc Potocnik July 8, 2026 0 Comments The Did You Know? Redshift for Cinema 4D ...

08/07/2026

LARA Wizard Touchpanel gets major configuration upgrade

Lightware is introducing the biggest update yet to the LARA Wizard Touchpanel configuration experience, designed to help integrators work faster while deliverin...

08/07/2026

DMC Production Reimagines Live OB with Calrec

DMC Production has turned to Calrec in its quest to redefine outside broadcasting with a flexible approach to live production that reverse engineers the convent...

08/07/2026

FCC Probe of 'The View' Racks Up 77,611 Comments

Share Copy link Facebook X Linkedin Bluesky Email...

08/07/2026

NAB Releases New Radio and TV Station Self-Inspection Guides

Share Copy link Facebook X Linkedin Bluesky Email...

08/07/2026

Ross Production Services Standardizes on Clear-Com Intercom Systems

Share Copy link Facebook X Linkedin Bluesky Email...

08/07/2026

Reel FX Animation Adopts Foundrys Flix on Doctor Dolittle...

Foundry today announced that Reel FX Animation Studios has adopted Flix to standardize their pipeline and streamline processes across departments. Flix is a vis...

08/07/2026

The right team. The right time.' How The Killings at Parrish Station stuck to their creative guns

The right team. The right time.' How The Killings at Parrish Station stuck t...

08/07/2026

Australians in Film and Screen Australia launch FUTURE VISION Forward to elevate Australian television to the global stage

Australians in Film and Screen Australia launch FUTURE VISION Forward to elevate...

08/07/2026

RT to air award-winning documentary TESTIMONY

Film follows the courageous fight for justice by survivors of Ireland's Magdalene Laundries & Mother and Baby Homes TESTIMONY airs Wednesday 22 July at 9...

08/07/2026

NVIDIA Nemotron Achieves Benchmark-Leading Performance With LangChain Deep Agents Harness

NVIDIA Nemotron 3 Ultra is offering leading performance at lower cost than top c...

07/07/2026

Open call: Apply for the Media Innovation Europe Validation Booster

Applications are now open for the Validation Booster, a six-month acceleration programme supporting journalists, media organisations, content creators, media in...

07/07/2026

HAND Issues Persistent Digital IDs to 50 Top 2026 MLB Draft Prospects

The Universal Talent Identifier (HAND) has issued HAND IDs to 50 top prospects ahead of the 2026 MLB Draft, including consensus top-ranked players Roch Cholowsk...

07/07/2026

Cisco and McLaren Mastercard Formula 1 Team Extend Technology Partnership

Cisco and the McLaren Mastercard Formula 1 Team have announced an extension of their partnership, expanding the scope from networking and communications to incl...

07/07/2026

LucidLink Announces Enhanced Integration with Adobe Frame.io

LucidLink has announced a workflow integration with Adobe Frame.io that gives production teams unified access to Frame.io projects alongside supporting producti...

07/07/2026

Chyron Appoints Ahmed Magd as Middle East Sales Director

Chyron has announced the appointment of Ahmed Magd as Sales Director for the Middle East. Magd joins from previous senior commercial roles at Riedel Communicati...

07/07/2026

Leader Electronics T&M Equipment Used in Live Broadcast of Pope Leo XIVs Visit to Sagrada Famlia

Leader Electronics of Europe has announced that its PHABRIX Qx rasterizer and Le...

07/07/2026

eCLUTCH Secures EMEA and MENA Broadcast Rights for Esports World Cup 2026

eCLUTCH has announced it has acquired broadcast rights to the Esports World Cup 2026 for EMEA and MENA, covering the Middle East, Africa, the Balkans, Sweden, a...

07/07/2026

Riedel and ARRI Support Cinematic Live Production at Eurovision Song Contest 2026

Riedel Communications and ARRI supported ORF's host broadcast of the Eurovis...

07/07/2026

ARRI Releases ALEXA 35 Live Xtreme With High-Frame-Rate SDI Output for Live Production

ARRI has announced the ALEXA 35 Live Xtreme, a camera that adds high frame rate ...

07/07/2026

IBC 2026: LiveU To Exhibit With LU900Q, Sony Integration, EcoSystem Expansion

LiveU will exhibit at IBC 2026 (Stand 7.C24), showcasing the LU900Q Intelligent Production Unit, expanded Sony collaboration, and additions to its open IP-video...

07/07/2026

Peacock Advances Spanish-Language World Cup Streaming With Visin de Campo, Dolby Vision, Real-Time Highlights

Telemundo's coverage is packaged with Multiview, Catch Up with Key Plays, in...

07/07/2026

Australian Rugby League Commission Secures $5.3 Billion Media Rights Deal with Foxtel, Nine, and Sky NZ

The Australian Rugby League Commission (ARLC) has announced a seven-year media r...

07/07/2026

BYUtv Partners With Big 12 for Football Media Days Production

Produced onsite at The Star in Frisco, TX, live coverage of the two-day event airs on ESPN platforms The season for Football Media Days is here, and the Big ...

07/07/2026

Rogers To Become 100% Owner of Maple Leaf Sports & Entertainment

Rogers Communications Inc. has announced an agreement to acquire the remaining 25% ownership stake in Maple Leaf Sports and Entertainment (MLSE) from Kilmer Spo...

07/07/2026

Mobile TV Groups Nick Garvin on Success of MTVG Production Platform at New Mountain Media Center

End-to-end broadcast solution includes fleet of mobile units, Cloud Control, and...

07/07/2026

SVG Executive Perspectives 2026: Industry Leaders Discuss Biz and Tech Trends for the Year Ahead

Sports-production-tech experts sound off on the state of the industry...

07/07/2026

Mix Buddy instrument mixer from Heritage Audio

New mixer aimed squarely at instrument-level sources Heritage Audio have clearly been busy recently, as alongside their all-new Tubestrip, they've also ...

07/07/2026

Heritage Audio unveil the Tubestrip

New channel strip combines popular hardware designs The latest arrival to the Heritage Audio line-up brings together a selection of their praised hardware d...

07/07/2026

Clear-Com Powers Ross Production Services Mobile Productions

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