
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 ...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
04/07/2026
April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...
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...
23/05/2026
Nielsen Global Leadership Network graduates celebrate Earth Day 2026
Nielsen vo...
23/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
23/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
23/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
23/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/05/2026
Germany's Magenta TV, which will have 44 exclusive FIFA World Cup match broa...
22/05/2026
DAZN, the world's leading sports entertainment platform, has acquired global broadcast rights to the International Federation of American Football's ( I...
22/05/2026
ATHLOS, the all-women's professional track and field league, has announced i...
22/05/2026
The National Academy of Television Arts & Sciences (NATAS) today announced that the 47th Annual Sports Emmy Awards and the 47th Annual News & Documentary Emmy A...
22/05/2026
Wooden Camera today announced the release of new accessories for the Blackmagic URSA Cine Immersive. The new lineup includes a redesigned Top Plate and Side Rai...
22/05/2026
YES Network and OTT Advisors have announced a sixth consecutive season of their streaming partnership, continuing their collaboration on the Gotham app. OTT Adv...
22/05/2026
NESN, New England's premier sports network, will again turn its camera to Fe...
22/05/2026
Dale Pro Audio is hosting an RF over Fiber Livestream Webinar on May 28 from 1-2:30 pm EST. With major sporting events and large-scale productions putting incre...
22/05/2026
Audio-Technica has announced key leadership appointments designed to further strengthen its sales organization and drive continued growth across the Americas. M...
22/05/2026
After nearly four decades shaping the global combat sports landscape, Scott Coker has announced a powerful return as he looks to build a new international mixed...
22/05/2026
Skyline Communications, the company behind the globally deployed DataMiner xOps platform, today announced the launch of xOps Vanguard Runway, a strategic accele...
22/05/2026
For the fully onsite production, 30 cameras - including a SkyCam and Megalodon - will capture the action in Texas
One of the world's biggest rodeo producti...
22/05/2026
Leading Argentina-based sports media company Torneos y Competencias S.A. has modernized its playout operations, implementing a fully redundant, multichannel env...
22/05/2026
As the 2026 Major League Pickleball season kicks off this weekend in Dallas, it ...
22/05/2026
Shure has become a minority investor in Edge Sound Research, a start-up company that is developing new experiential audio technologies that redefine how many au...
22/05/2026
In advance of this year's Sports Emmy Awards, SVG is taking a deep dive into...
22/05/2026
The National Hockey League (NHL) and Amazon Music announced that GRAMMY Award-winning superstar Jelly Roll will provide the official theme song of the 2026 Stan...
22/05/2026
David Pogue will keynote SVV Summer Camp and discuss Apple at 50: How the World...
22/05/2026
In its second year as rightsholder, FOX Sports goes bigger across the board for ...
22/05/2026
Heading into FOX Sports' second Indianapolis 500, Lead Director Mitch Riggin...
22/05/2026
At our 2026 Investor Day, we shared an inside look at the rebuild of our advertising business. This pivot to our own purpose-built platform is already driving s...
22/05/2026
Podcasting on Spotify continues to grow, and so do the ways listeners engage with it. At Investor Day 2026, we shared how we're building the next chapter of...
22/05/2026
Limited-time collections now available
Restoration experts CEDAR Audio have recently launched a new line of Icons plug-ins that make their powerful processo...
22/05/2026
Three new classics join Model Pass line-up
Boss' PX-1 Plugout Pedal offers an innovative approach to guitar pedals, providing users with a hardware stom...
22/05/2026
At its Meitingen site, SGL Carbon has implemented two key projects to further de...
22/05/2026
Statement regarding 2026 National NAIDOC Lifetime Achievement Award for the late...
22/05/2026
Latest data reveals steady distributor rankings, a seasonal shift toward digital...
22/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/05/2026
Amagi Media Labs Limited (NSE: AMAGI, BSE: 544679), a cloud-native SaaS platform providing AI-enabled solutions to global media and entertainment companies, tod...
22/05/2026
An nima Post Relies on Cintel to Revive Classic Mexican Films
Brie Clayton May 22, 2026
0 Comments
Film scanner and DaVinci Resolve Studio help manage...
22/05/2026
Boris FX Sapphire Adds Optical Beauty and Hypnotic Textures
Jessie Electa Petrov May 22, 2026
0 Comments
The 2026.5 release introduces advanced defocu...
22/05/2026
Deployment Preserves Trusted Workflows While Enabling a Path to UHD and SMPTE ST 2110
Leading Argentina-based sports media company Torneos y Competencias S.A....
22/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/05/2026
Back to All News
Ex-Husband, Current Husband, One Wild Rescue: Korean Action Co...
22/05/2026
Catch the latest in Irish music live from venues such as Whelan's, R is n Du...
21/05/2026
Game Creek Video Columbia and Celtic, NEP Supershooter 8 will house onsite produ...
21/05/2026
Freshly graduated, this upstart producer, director, and camera operator is already working as an AP on videoboard shows for the Philadelphia Phillies
In the li...
21/05/2026
Media Links has announced a channel partnership with Clearcast Asia, a broadcast...
21/05/2026
SiriusXM and NASCAR have announced a multi-year renewal of their broadcasting agreement. SiriusXM will continue to carry live broadcasts of every NASCAR Cup Ser...