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

10/12/2025

Sound-Alike Commercials Are Part of Sports' Soundtrack

Sound-Alike Commercials Are Part of Sports' Soundtrack Johnny Cash for Coca-Cola is the latest in a long litany of sonic approximationsBy Dan Daley, Audio ...

10/12/2025

Immersive Sound Is Logical Next Step for Sports Venues

Immersive Sound Is Logical Next Step for Sports VenuesSound-systems suppliers are sanguine, but the market has its challengesBy Dan Daley, Audio Editor Wednes...

10/12/2025

The Romans Built Arenas for Immersive Sound 2,000 Years Ago

The Romans Built Arenas for Immersive Sound 2,000 Years AgoThe historic Arena of Nimes in France is still in use todayBy Dan Daley, Audio Editor Wednesday, De...

10/12/2025

SVG Summit 2025 Preview: Audio Workshop Hits on Immersive, Virtualized, and Next-Gen Streaming Workflows

SVG Summit 2025 Preview: Audio Workshop Hits on Immersive, Virtualized, and Next...

10/12/2025

SVG Summit 2025 Technology Exhibits Preview: Audio Spotlight

SVG Summit 2025 Technology Exhibits Preview: Audio SpotlightBy SVG Staff Wednesday, December 10, 2025 - 8:21 am Print This Story | Subscribe Story Highlig...

10/12/2025

SVG Europe Audio: Listening to the Sounds of Powder and Ice at Milano Cortina with a Behind the Scenes Tour of OBS and NBC's Audio Set Ups

SVG Europe Audio: Listening to the sounds of powder and ice at Milano Cortina wi...

10/12/2025

Advancements in Audio Technology: Capturing the Atmosphere of Live Sports

Advancements in audio technology: Capturing the atmosphere of live sports By David Davies Tuesday, November 25, 2025 - 09:27 Print This Story Although wor...

10/12/2025

Everything Smelled of Popcorn: The Art of Bringing the Complex Sound of Esports to Fans With Sound Supervisor Matt Gilbert

Everything smelled of popcorn: The art of bringing the complex sound of esports ...

10/12/2025

2026 Sundance Film Festival Unveils 97 Projects Selected for the Feature Film and Episodic Program

Top L-R: Ha-Chan, Shake Your Booty!, Hanging by a Wire, Broken English, Buddy C...

10/12/2025

You're in Control: Spotify Lets You Steer the Algorithm

For the first time, Spotify is giving users the power to steer the algorithm. Gustav S derstr m, Spotify's Co-President, CPO, and CTO, shares the vision beh...

10/12/2025

L3Harris to Produce Additional Solid Rocket Motors for Precision-Guided Artillery System

L3Harris' new contract for Guided Multiple Launch Rocket System Insensitive ...

10/12/2025

US Space Force Expands Offensive Space Programs Through L3Harris Foreign Sales

L3Harris Meadowlands system has been designed with an open architecture software system that allows for more flexible and efficient software updates. This capab...

10/12/2025

Football Shifts TV Viewing Towards Ad Supported, Nielsen's Q3 2025 Ad Supported Gauge Finds

During this interval, streaming comprised the majority of ad supported TV (46.4%...

10/12/2025

Bitcentral Names Venture Capital Exec Rick Arnold to Board

NEWPORT BEACH, Calif. Bitcentral, a provider of production, asset management, playout and streaming workflow solutions, has named technology veteran Rick Arnold...

10/12/2025

TV Tech Announces Winners of 2025 Best in Market Awards for M&E Tech

TV Tech is delighted to reveal the winners of the 2025 Media & Entertainment: Best in Market Awards....

10/12/2025

AIMS, VSF, AMWA, EBU To Hold Inaugural IPMX Testing, Certification Event

BOTHELL, Wash. The Alliance for IP Media Solutions (AIMS), the Video Services Forum (VSF), the Advanced Media Workflow Association (AMWA) and the European Broad...

10/12/2025

DirecTV Launches Peacock Games

In a notable example of how pay TV operators are integrating streaming services into their lineup and using those services to retain or attract subscribers, Dir...

10/12/2025

Chaos Brings Real-Time Rendering to Maya and Houdini

Today, Chaos builds instant feedback into the viewport, connecting Maya and Houdini to Chaos Vantage's real-time path tracer. Artists can now assess 3D asse...

10/12/2025

Smeup doubles capacity with Cubbit under a new agreement...

Smeup, a key partner for companies engaged in digital transformation, today announced the expansion of its adoption of Cubbit, the first geo-distributed cloud s...

10/12/2025

Mediagenix Strengthens Its Security Posture with ISO 2700...

Mediagenix, a global leader in smart content solutions to profitably connect the right content to the right audience, today announced two significant milestones...

10/12/2025

HDR10+ Technologies Unveils HDR10+ ADVANCED Dynamic Metadata Technology

BEAVERTON, Ore. HDR10+ Technologies, LLC has announced that they will soon begin the licensing and certification of devices, content, and services that support ...

10/12/2025

SMPTE, EBU, ETC Publish Report on AI's Impact on the Media

SMPTE has joined forces with the European Broadcasting Union (EBU) and Entertainment Technology Center (ETC) to publish an updated report on AI and its impact o...

10/12/2025

Clear-Com Appoints Kris Koch as New Director of Sales - N...

Clear-Com is pleased to announce the appointment of Kris Koch as Director of Sales - North & South America. In this expanded leadership role, Kris will oversee...

10/12/2025

Mavis Camera Launches Film Kit Unlocking LUT Workflows an...

Mavis today announced the latest version of Mavis Camera (v7.4), a major update to its professional iOS camera app, headlined by the launch of Film Kit - an opt...

10/12/2025

Creamsource Taps Industry Heavyweight Markus Zeiler as Gr...

Creamsource, renowned for its Vortex series of cinematic lighting, is laying the groundwork for its next phase of growth with the addition of Markus Zeiler as G...

10/12/2025

Digital Alert Systems Introduces DAS3-DC-PS DASDEC-III DC...

Digital Alert Systems, a global leader in emergency communications solutions for media providers, today announced that the DAS3-DC-PS, a new DC power supply opt...

10/12/2025

Riedel and Racing Electronics Announce Strategic Partners...

Riedel Communications today announced it has formed a strategic partnership with Racing Electronics, a premier provider of motorsport communication equipment in...

10/12/2025

GALSNGEAR Announces 2026 Leadership Retreats on East and...

#GALSNGEAR is launching two signature leadership retreats in early 2026, designed to equip women in media, entertainment, and technology with the tools to lead...

10/12/2025

CVP Launches Global Price Guarantee for Seamless Internat...

Providing worldwide customers with total confidence through transparent, all-inclusive pricing CVP, one of Europe's leading suppliers of professional video...

10/12/2025

Securing the Future of Broadcast TV in the U.S.

With the Federal Communications Commission working on new rules for the deployment of NextGen TV, next year promises to be an important one for both the future ...

10/12/2025

Former Charter CEO Tom Rutledge to Receive Cable Centers Bresnan Award

DENVER Tom Rutledge, director emeritus and former president and CEO of Charter Communications, will be honored with the 2026 Bresnan Ethics in Business Award by...

10/12/2025

Cadent Acquires YouTube Measurement Firm VuePlanner

NEW YORK Novocap's Cadent has acquired VuePlanner, a YouTube video ad planning, optimization, and measurement company in a deal that will help Cadent expand...

10/12/2025

Avoid Playlist Conflicts: Scheduling Back-to-Back Special Playlists

In preparation for the madness of March, here are some important reminders for scheduling back-to-back Special Playlists. The first Special Playlist MUST end b...

10/12/2025

VEON's Rising Capital Markets Profile Strengthened by Inclusion in Key Global Indices

10 Dec 2025 VEON's Rising Capital Markets Profile Strengthened by Inclusion...

10/12/2025

VEON Recognized for JazzCash, Kyivstar and Jazz at the World Communication Awards 2025

10 Dec 2025 VEON Recognized for JazzCash, Kyivstar and Jazz at the World Commun...

10/12/2025

Tribeca Films to Release the Independent Documentary Film Beam Me Up, Sulu by Timour Gregory and Sasha Schneider

December 10th, 2025 TRIBECA FILMS TO RELEASE THE INDEPENDENT DOCUMENTARY FILM...

10/12/2025

Sky extends partnership with the Ladies European Tour for a landmark 30th year

Wednesday 10 December 2025 Sky extends partnership with the Ladies European Tour for a landmark 30th year Sky and the Ladies European Tour (LET) have announce...

10/12/2025

Walk-on if you love the darts: James Maddison, Luke Littler and Big John star as Club 180 opens before 2026 PDC World Darts Championship

Wednesday 10 December 2025 Walk-on if you love the darts: James Maddison, Luke ...

10/12/2025

Rohde & Schwarz presents world's first RF power sensor with 0.80 mm RF connector for gapless DC to 150 GHz coverage

Rohde & Schwarz presents world's first RF power sensor with 0.80 mm RF conne...

10/12/2025

2026 Starts With a Swoon: Kim Seon-ho and Go Youn-jung Lead Can This Love Be Translated?', Premiering January 16

Back to All News 2026 Starts With a Swoon: Kim Seon-ho and Go Youn-jung Lead C...

10/12/2025

'Berlin and the Lady with an Ermine' Arrives to Netflix on May 15

Back to All News Berlin and the Lady with an Ermine Arrives to Netflix on May 15 Entertainment 10 December 2025 GlobalSpain Link copied to clipboard THE N...

10/12/2025

From stand-up to Foxtrot: Comedian Michael Fry revealed as fourth contestant for Dancing with the Stars 2026

It's out of the frying pan and into the sequins for comedian and actor Micha...

10/12/2025

Documentary film on the extraordinary life of Patrick Lydon, pioneer of social inclusion and disability, to premiere on RT

Born That Way airs Thursday 18 December on RT One and RT Player Born That ...

09/12/2025

2025 Sports Broadcasting Hall of Fame: Pam Oliver, Sideline Icon Who Redefined the Role

2025 Sports Broadcasting Hall of Fame: Pam Oliver, Sideline Icon Who Redefined t...

09/12/2025

SVG Summit 2025 Technology Exhibits Preview, Part 2

SVG Summit 2025 Technology Exhibits Preview, Part 2By Jason Dachman, Editorial Director, U.S. Tuesday, December 9, 2025 - 7:17 am Print This Story | Subscr...

09/12/2025

SVG Summit 2025 Preview: Cloud Production Workshop Spotlights Live and Non-Live Workflows in the Cloud

SVG Summit 2025 Preview: Cloud Production Workshop Spotlights Live and Non-Live ...

09/12/2025

Next-Generation Content Protection: Multi-Technology Security is Integral to Combating New Threats

Next-generation content protection: Multi-technology security is integral to com...

09/12/2025

CBS Sports Provides One-of-a-Kind Production' for UEFA Champions League Crossover Event

CBS Sports Provides One-of-a-Kind Production' for UEFA Champions League Cro...

09/12/2025

Spanish Professional Basketball League Relies on NETGEAR AV, MAM Tech for Seamless Production

Spanish Professional Basketball League Relies on NETGEAR AV, MAM Tech for Seamle...