
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 ...
01/06/2026
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, a leading technology and service provider for media-rich organizations, t...
01/05/2026
January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...
01/04/2026
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...
24/03/2026
Utah Scientific to Showcase a Variety of Hybrid SDI/IP Innovations at the 2026 N...
24/03/2026
Mediaproxy will showcase an updated version of its LogPlayer interface at NAB Sh...
24/03/2026
C gep de Jonqui re, a public college in Qu bec, has upgraded its TV studio complex with five Calrec Brio consoles and a Dante IP network. The installation was c...
24/03/2026
The American Association of Professional Baseball (AAPB) has announced new and r...
24/03/2026
National Telecom Public Company Limited (NT) used Ateme's KYRION platform fo...
24/03/2026
Grass Valley has expanded its relationship with ImSoPROD, the TV production entity of FDJ United, with the deployment of LDX C98 compact cameras across its nati...
24/03/2026
The E.W. Scripps Company is launching Scripps Sports Network (SSN), a free, ad-s...
24/03/2026
NEP Group has launched NEP Platform, a new software orchestration system that un...
24/03/2026
Daktronics has partnered with the Arizona Diamondbacks to design, manufacture and install a new LED video display and three ribbon boards at Chase Field in Phoe...
24/03/2026
Grass Valley has completed an upgrade of University of Pittsburgh Athletics'...
24/03/2026
Daktronics is upgrading eight LED displays at Wrigley Field in Chicago, totaling more than 8,300 square feet, using the Daktronics Renew product line. The upgra...
24/03/2026
Advanced Systems Group has appointed Kevin Poole as Senior Project and Support Manager within the ASG Workflow and Tools practice. The position is newly created...
24/03/2026
In an increasingly streaming-centric world, protecting high-value live sports co...
24/03/2026
Mediaproxy will showcase an updated version of its LogPlayer interface at NAB Show, April 19-22 in Las Vegas, booth W1423. The update includes AI tools, native ...
24/03/2026
The production studio has worked with content juggernauts such as MrBeast, The R...
24/03/2026
The event will also feature a State of the Industry address from sports-media veteran and strategic advisor Patrick Crakes....
24/03/2026
Victory , a free sports streaming service owned by A Parent Media Co. (APMC), has launched its NWSL Sunday Night Soccer franchise. The platform says the launch ...
24/03/2026
Sports content in free streaming is still relatively scant, but it's growing, right along with its monetization capabilities
Streaming-tech company Wurl re...
24/03/2026
Directed by Greg DeHart, the doc will feature Sports Broadcasting Hall of Famers...
24/03/2026
For the first time ever, Tubi - Fox's free streaming service - is working w...
24/03/2026
As the music industry gathers for Canada's Juno Awards, the local edition of...
24/03/2026
Behind every great song is a complex web of people, stories, and inspirations th...
24/03/2026
Few filmmakers have shaped popular cinema as profoundly as Steven Spielberg. So ...
24/03/2026
Latest Eurorack modules revealed
ALM/Busy Circuits have just introduced another two Eurorack modules, delivering a powerful new modulator that builds on the...
24/03/2026
Smallest, most affordable MPC to date
Akai Pro have just introduced their most accessible standalone sampler to date, making the iconic MPC experience avail...
24/03/2026
Create & manage presets on Windows & macOS
Electro-Harmonix have announced that their free Mac/Windows application now allows users of their Oceans Abyss re...
24/03/2026
Rohde & Schwarz amplifiers enable high-field immunity testing expansion at IB Le...
24/03/2026
The National Film and Video Foundation (NFVF) invites eligible Tier 1 and 2 South African production companies to submit proposals to serve as the Facilitating ...
24/03/2026
L3Harris ramps up production of its VAMPIRE C-UxS system....
24/03/2026
For more than 70 years, L3Harris has delivered essential fuzes and safe-and-arm solutions that bring the might to multi-domain battlefields across the globe, ...
24/03/2026
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({...
24/03/2026
Rick Bernier reflects on a career that has taken him to the very top of live broadcast audio. As a Senior Broadcast Audio A1 Engineer and Music Director, he has...
24/03/2026
Grass Valley has strengthened its long-standing relationship with ImSoPROD, the TV production entity of the FDJ United, with the deployment of Grass Valley LDX ...
24/03/2026
At the 2026 NAB Show in Las Vegas, Utah Scientific will spotlight its expanding portfolio of hybrid SDI/IP routing, conversion, control, and signal management s...
24/03/2026
Fresh off its global reveal at ISE 2026 in Barcelona, the new V410 live 4K encoder/decoder from Miri Technologies Inc. will make its North American debut at the...
24/03/2026
Cinegy GmbH, premier provider of software-defined television technology, will show how its solutions answer the real challenges facing content creators and broa...
24/03/2026
Canberra-based radio and online broadcast network ArtSound FM (https://artsound.fm/) has invested in DHD audio mixing consoles for two new studios at its headqu...
24/03/2026
IBC today announced the nine projects selected for its 2026 Accelerator Media Innovation Programme, bringing together organisations from across broadcast, strea...
24/03/2026
Mediaproxy, the global standard for software-based IP compliance monitoring and multiviewing solutions, will showcase the next generation of its industry-leadin...
24/03/2026
Underscoring its global reputation as one of Canada's most renowned colleges for television production, the C gep de Jonqui re public college in Qu bec has ...
24/03/2026
Leading video software provider Synamedia today announced the launch of the industry's first edge watermarking solution that enables faster disruption of pi...
24/03/2026
Experience Commerce, a leading full-service digital marketing agency and part of the Cheil SWA Group, has secured the annual social media mandate for Fiat Payme...
24/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
24/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
24/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...