
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 ...
27/10/2026
This note is to provide clarification to a previous distributed press release from NBC.
Game 1 of the WNBA Finals between Atlanta and Golden State delivered 1....
27/10/2026
aconnic AG (ISIN: DE000A0LBKW6), Munich, is prolongin an existing debt financing...
27/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
27/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
27/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
27/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
27/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
27/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
27/10/2026
First 20 channels move to software-defined playout as TSA considers the requirements of almost 40 additional Movistar Plus linear services.
Telef nica Servici...
27/10/2026
Bitcentral, a news production and media workflow technology company, today announced Fusion MediaShare, a cloud-native service that helps station groups discove...
27/10/2026
Amagi, the media industry cloud company, today announced that KT Studio Genie (KTSG), the content subsidiary of KT Corporation, has completed a zero-downtime mi...
27/10/2026
Philippe Mercier, CAS, Captures Explosive Drama and Fast-Paced Action for Qu b c...
27/10/2026
Sfoor Labs releases 37 audio plugins for Windows, including five free effects
Brie Clayton October 27, 2026
0 Comments
Sfoor Labs has released Windows...
27/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
27/10/2026
Pebble, the leading automation, content management and integrated channel specialist, is building on a successful CABSAT 2026, with major customer projects, new...
27/10/2026
Limecraft today announces version 2026.7 of its cloud-based media production and delivery platform, introducing a Workflow Library, expanded AI-assisted transcr...
27/10/2026
X5 and X20 platforms connect six locations across Santa Catarina, enabling resilient IP distribution and centralised broadcasting operations
Appear ASA (Appear...
27/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
27/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
27/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
27/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
27/10/2026
Set in the 72 hours leading up to D Day, Pressure is a tense historical drama starring Brendan Fraser as Supreme Allied Commander Dwight Eisenhower and Andrew...
27/10/2026
Arvato Systems Joins the Bundesverband Direktvertrieb Deutschland E. v. (BDD) as...
27/10/2026
CUPERTINO, CALIFORNIA Apple today introduced transformative updates to Apple Cre...
27/10/2026
CUPERTINO, CALIFORNIA Apple today announced the new iMac featuring the superfast M6, delivering even more performance and powerful AI capabilities in its striki...
27/10/2026
CUPERTINO, CALIFORNIA Apple today announced the new 14-inch MacBook Pro with M6,...
27/10/2026
There are 57 million people worldwide living with dementia today. For the researchers working to help them, the obstacle isn't a lack of effort - it's t...
26/10/2026
In-venue and creative video staffers at the professional and collegiate level ha...
26/10/2026
The company helps content owners take advantage of the burgeoning FAST business to give viewers more choices
Amagi EVP, Global Sales, SaaS, Dan Marshall has se...
26/10/2026
Behind The Mic provides a roundup of recent news regarding on-air talent, includ...
26/10/2026
Diversified has launched Google Beam demo centers in Los Angeles, Chicago, Nashville and Newark. The centers let businesses try HP Dimension with Google Beam, a...
26/10/2026
Indian news broadcaster NDTV has adopted Amagi's AdFlow Orchestrator to improve channel performance on FAST (Free Ad-supported Streaming TV) and Connected T...
26/10/2026
TEGNA and the Houston Comets have announced a multi-year partnership making KHOU...
26/10/2026
The San Antonio Spurs have named Sinclair Broadcast Group their new over-the-air media partner, bringing Spurs basketball to local fans beginning with the 2026-...
26/10/2026
FOX Sports will mark Veterans Day weekend with two days of NFL and college footb...
26/10/2026
DIRECTV has signed a multi-year distribution agreement with the NHL for four tea...
26/10/2026
How does NBC Sports manage transmission operations for the Super Bowl, Winter Ol...
26/10/2026
University of Texas Athletics and the Business of Sports Institute (BOSI) in the...
26/10/2026
Classmates at Ithaca College and in the Game Creek Video Apprenticeship Program,...
26/10/2026
NAB Show New York and the SMPTE Summit will co-locate at the Javits Center in 2027, bringing together two leading events serving the media and entertainment ind...
26/10/2026
A 10-person team at American Family Field is supporting live game and studio pro...
26/10/2026
Combining four plug-ins aimed at vocal and dialogue work
NoiseWorks Audio have announced the Complete Bundle, a collection which brings together VoiceAssist...
26/10/2026
Boasts improved A-D & D-A specs
RME's flagship converter and headphone amp has just been treated to an upgrade that introduces redesigned converter circ...
26/10/2026
The company has partnered with the telecom provider lcom to launch Play , its n...
26/10/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
26/10/2026
NASHVILLE, OCTOBER 26, 2026 NUGEN Audio has launched VisLM 3, the newest generation of its award-winning loudness metering solution, ahead of AES Show 2026: N...
26/10/2026
CaptionX Launches Clips: Turns Long Videos Into Shorts, Working Entirely From th...
26/10/2026
Horror Film Killer Rental Shot with Blackmagic Design Cameras
Brie Clayton October 26, 2026
0 Comments
Genre mixing film shot with eight URSA Mini Pro...
26/10/2026
PlottoFilm puts script breakdown, storyboards and AI shot generation in one brow...