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 ...

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...

04/07/2026

Detective Conan: Fallen Angel of the Highway Opens in Dolby Cinemas Across Japan, Presented in Dolby Atmos and Dolby ...

April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...

01/06/2026

Dolby Sets the New Standard for Premium Entertainment at CES 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...

19/05/2026

Young Journalist' finalists visit London for training and networking

The winner of Thomson Foundation's Young Journalist of the Year 2025, Tracy Bonareri Onchoke, and runner up Wangu Kanuri enjoyed a three-day trip to London ...

19/05/2026

Cisco and USGA Announce Multiyear Partnership Extension

Cisco and the USGA have announced a multiyear extension of their partnership, which began in 2018. Cisco serves as the Official Technology Partner of the USGA, ...

19/05/2026

Urban Edge Network and Spiideo Partner to Enhance NAIA Sports Streaming

Urban Edge Network (UEN), a streaming platform for NAIA sports, has announced a partnership with Spiideo to provide streaming and production tools to UEN's ...

19/05/2026

Warner Bros. Discovery Announces Expanded Roland-Garros 2026 Coverage

Warner Bros. Discovery (WBD) will provide live coverage of all 900 Roland-Garros matches across its platforms beginning with qualifiers on May 18. In Europe, 21...

19/05/2026

Tubi Launches FIFA World Cup 2026 FOX Hub

Tubi, Fox Corporation's free streaming service, has announced the launch of the FIFA World Cup 2026 FOX Hub, a dedicated destination for World Cup programmi...

19/05/2026

Telefnica and Sony Conduct 5G mmWave Broadcast Trial at Movistar Arena

Telef nica, in collaboration with Sony, has conducted a 5G connectivity trial at the Movistar Arena in Spain using the 26 GHz millimetre wave (mmWave) band. The...

19/05/2026

Ross Production Services Integrates Calrec Argo M into New Hypermax-1 Truck

Ross Production Services (RPS) has installed a Calrec Argo M console into its new Hypermax-1 remote production truck, replacing one of three Argo S consoles pre...

19/05/2026

Panasonic Projector and Display Acquires HIVE Media Control

Panasonic Projector and Display Corporation has announced the acquisition of 100% of the shares of UK-based media technology company Hive Media Control Ltd. (HI...

19/05/2026

Globecast Completes Major Renovation of Singapore Facility

Globecast has announced the completion of a nine-month renovation of its Singapore facility, converting it from a traditional linear broadcast operation into a ...

19/05/2026

Grass Valley Signs Three-Year Enterprise Agreement with Phoenix Broadcast Solutions

Grass Valley has announced a three-year enterprise agreement with Phoenix Broadc...

19/05/2026

Watch Brasil Selects Bitmovin for Streaming Player, Encoder, and Observability

Bitmovin has announced that Watch Brasil, a streaming platform operating across Brazil and Europe since 2018, has replaced its legacy systems with Bitmovin'...

19/05/2026

Ateme and Akamai Power Nepal Premier League Live Streaming

Ateme has announced the migration of Dish Home Nepal's Nepal Premier League (NPL) streaming infrastructure to Ateme's TITAN Live solution deployed on Ak...

19/05/2026

CMSI Supports ESPNs NCAA Gymnastics Championships Coverage

CMSI provided workflow, media management, and HDR support for ESPN during coverage of the NCAA Gymnastics Semifinals and Championships. The company supported fi...

19/05/2026

SVG Rewind: TGLs SmartPin Cam Offers a Whole New Perspective for Golf

In advance of this year's Sports Emmy Awards, SVG is taking a deep dive into the six production-technologies nominated for this year's George Wensel Tec...

19/05/2026

SVG Rewind: FOX IndyCar Takes In-Car AR Graphics to New Heights

In advance of this year's Sports Emmy Awards, SVG is taking a deep dive into the six production-technologies nominated for this year's George Wensel Tec...

19/05/2026

NEP Supershooter 11 and 65 Roll Out To Meet Different Production Needs

Featuring a fully IP infrastructure, Supershooter 11 is intended for large-scale events. Enabling remote and distributed workflows, Supershooter 65 joins the RE...

19/05/2026

Boots Riley Unpacks His Vision of Power, Style, and Time at Sundance Institute's I Love Boosters Denver Screening

By Jessica Herndon The line wrapped around the building outside Denver's La...

19/05/2026

Building a More Trusted Podcast Experience for Creators and Listeners

Podcasting continues to evolve, and so does Spotify. As we build what comes next, one thing remains constant: This is a medium built on connection. It lives in ...

19/05/2026

GC Audio & Looptrotter announce the Emperor Signature Cartridge

Popular design joins Inherit cartridge line-up When GC Audio introduced their modular Inherit system, it was available with a selection of the company's...

19/05/2026

oeksound introduce Soothe3

Resonance-suppression plug-in gets ground-up rebuild Following on from its 10-year anniversary, oeksound's flagship plug-in has just reached its third m...

19/05/2026

Novation unveil the FLKey 2

Dedicated FL Studio controller keyboard range refreshed Novation's dedicated FL Studio controller family has just been upgraded, with four new models ex...

19/05/2026

Rohde & schwarz strengthens its in-vehicle networks test portfolio with the launch of new ASA-ML compliance solution

Rohde & schwarz strengthens its in-vehicle networks test portfolio with the laun...

19/05/2026

Lawful Intelligence: Rohde & Schwarz stellt neues Portfolio fr moderne Polizeiarbeit vor

Lawful Intelligence: Rohde & Schwarz stellt neues Portfolio f r moderne Polizeia...

19/05/2026

Press Release: South Africa to be celebrated as European Film Market's Country in Focus at the Berlinale 2027

Press Release 18 May 2026, Johannesburg South Africa has been selected as the...

19/05/2026

To Deliver for the Warfighter, Acquisition Reform Must Provide a Level Playing Field

When all companies in the market are allowed to compete under the same set of ru...

19/05/2026

Unjammable Lifeline: L3Harris Fiber-Optic Tethers Keep Warfighters Connected

Battle-proven technology withstands electronic warfare threats across air, maritime surface and subsea domains....

19/05/2026

WESCAM MX-Series: Defining the Moment Before the Target Moves

WESCAM MX-Series EO/IR systems provide high-precision targeting across domains, including counter-UAS applications...

19/05/2026

Cobalt Digital and SineSix Media Partner to Transform Accessibility Compliance into a More Engaging Viewer Experience at NAB Show 2026

CHAMPAIGN, Ill. April 16, 2026 - Cobalt Digital today announced a partnership ...

19/05/2026

Cobalt Digital Announces Launch of blueCORE at NAB Show 2026: Compact Powerhouse Signal Processors for SDI and ST 2110 Workflows

Las Vegas - April 18, 2026 Cobalt Digital, the leading designer and manufactur...

19/05/2026

Advanced HDR by Technicolor and Cobalt Digital Address Live Production Gap as HDR Adoption Collides With Legacy Workflows

LAS VEGAS April 18, 2026 - Advanced HDR by Technicolor and Cobalt Digital are ...

19/05/2026

Cobalt Digital Wins Two Future Best of Show Awards at 2026 NAB Show

LAS VEGAS - May 4, 2026 - Cobalt Digital, the leading designer and manufacturer of signal processing products, and a founding partner in the openGear initiativ...

19/05/2026

Cobalt Digital Brings Flexible End-to-End IPMX/ST 2110 Ecosystem to MPTS

London - 11 May 2026 Cobalt Digital, the leading designer and manufacturer of award-winning signal processing products, and a founding partner in the openGear...

19/05/2026

Clear-Com Enhances Musikal Perahu Kertas with Eclipse HX and FreeSpeak II

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

19/05/2026

Ross Production Services Flexes Infrastructure with Console Switch

Celebrating its ability to quickly adapt to changing requirements, Ross Production Services (RPS) has put its flexible infrastructure to good use, switching one...

19/05/2026

NFL Pushes Back Against Critics of Games on Streaming

Share Copy link Facebook X Linkedin Bluesky Email...

19/05/2026

NEP Group Rolls Out Two New Mobile Production Units In U.S.

Share Copy link Facebook X Linkedin Bluesky Email...

19/05/2026

Phoenix Broadcast Solutions Raises its Live Production Ga...

Grass Valley has entered into a three-year enterprise agreement with Phoenix Broadcast Solutions as the Singapore-based company expands its live production oper...

19/05/2026

Clear-Com Enhances Musikal Perahu Kertas with Eclipse HX...

Clear-Com supported Musikal Perahu Kertas, a large-scale musical theater production in Indonesia adapted from the acclaimed novel by Dee Lestari, through the d...

19/05/2026

METEO CONSULT and La Chaine Meteo Select Actus Digital fo...

Actus Digital, a LiveU company, and a leading provider of intelligent media monitoring and broadcast compliance platforms, announced today that METEO CONSULT ha...

19/05/2026

Transforming Broadcast Operations - Globecast Unveils Sta...

Globecast, a leading provider of managed services for the broadcast and media industry, today announced the completion of a major renovation of its Singapore fa...

19/05/2026

Calrec Console Switch Helps Ross Production Services Fle...

Following a major upgrade to its Connecticut remote production centre with the installation of three 60-fader Argo S consoles in 2023, RPS has switched one of t...

19/05/2026

PlayBox Technology Launches a Modular Media Orchestration...

PlayBox Technology today announced the launch of Celebro Play, a browser-based media orchestration platform designed specifically for broadcast facilities and p...

19/05/2026

Publicis Groupe to Buy LiveRamp for $2.2 Billion

Share Copy link Facebook X Linkedin Bluesky Email...

19/05/2026

Tubi Launches 2026 FIFA World Cup Fox Hub

Share Copy link Facebook X Linkedin Bluesky Email...

19/05/2026

Viamedia Introduces a New Geographic Intelligence Layer

Share Copy link Facebook X Linkedin Bluesky Email...