
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...
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...
22/01/2026
SVG Students To Watch: Chuck Luarasi, Curry CollegeThe Massachusetts native is cutting his teeth with Harvard Athletics, Cape Cod Baseball LeagueBy Brandon Cost...
22/01/2026
Follow the Money, Episode 4: Talking Tech, Sports, and Private Capital With Sam ...
22/01/2026
Fever pitch: WRC is back for the start of the 2026 season with Rallye Monte-Carl...
22/01/2026
FloSports Prepares To Broadcast Outdoor Hockey Game Amidst Brutally Cold Tempera...
22/01/2026
As Paramount Enters the Octagon, UFC's Craig Borsari Previews Production Pl...
22/01/2026
By Jordan Crucchiola
It's a desire you hear so often among those in filmmaking circles. I just want to make cool stuff with my friends. With the NEXT selec...
22/01/2026
Brittany Shyne attends the 2025 Sundance Film Festival premiere of Seeds at The Ray Theatre on January 25, 2025, in Park City, UT. (Photo by Robin Marshall/Sh...
22/01/2026
Joel Edgerton and Felicity Jones appear in Train Dreams by Clint Bentley, an off...
22/01/2026
Last November, Ed Sheeran returned to his musical roots for an intimate, one-nig...
22/01/2026
A New Voice, New Places and the Real Australia as Brooke Blurton joins Ernie Din...
22/01/2026
MELBOURNE, Fla., Jan 22, 2026 - L3Harris Technologies (NYSE: LHX) has received a...
22/01/2026
Every delay costs. When a subtitle fails QC, even the smallest issue can mean missed deadlines, extra vendor costs, or frustrated teams. The new Accurate.Video ...
22/01/2026
Strategic hire marks latest milestone in Gracenote's continued expansion into CTV advertising & monetization
New York - January 21, 2026 - Nielsen's Gr...
22/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
22/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
22/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
22/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
22/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
22/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
22/01/2026
A Four-Time Emmy Award Winner on Defining His SoundCharles David Denler is a Composer and Pianist for film, television, and the Concert Stage. He is a 4 Time E...
22/01/2026
Rohde & Schwarz, Qualcomm, and Motorola demonstrate successful 5G Broadcast comp...
22/01/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
22/01/2026
The wait is over, pilots. Flight control support - one of the most community-requested features for GeForce NOW - is live starting today, following its announce...
22/01/2026
AI has taken center stage in financial services, automating the research and exe...
22/01/2026
AI-powered content generation is now embedded in everyday tools like Adobe and Canva, with a slew of agencies and studios incorporating the technology into thei...
21/01/2026
Australia's Greatest Conman? premieres 24 February on SBS and SBS On Demand
Media releases
The $900 million dollar mystery that fooled our nation Austra...
21/01/2026
SBS ignites Lunar New Year with bold storytelling for The Year of the Fire Horse
21 January, 2026
Media releases
SBS is charging into Lunar New Year 2026 w...
21/01/2026
The Living Room Remains Central: Nielsen Highlights Growing TV Screen Dominance ...
21/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
21/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
21/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
21/01/2026
Telestream , the industry's leading provider of content lifecycle management and media workflow orchestration, and Quantum Corporation (NASDAQ: QMCO) today ...
21/01/2026
Lightware s TPN ecosystem brings a new level of predictability and structure to 10G AV-over-IP deployments, offering professional AV integrators a deterministic...
21/01/2026
Wisycom, a global leader in advanced wireless RF solutions, launches its new wideband antenna matrix, MATF, which supports RF and fiber for demanding multi-zone...
21/01/2026
Grass Valley will demonstrate how it is powering scalable, future-ready live production at FOMEX 2026, taking place February 2 4 in Riyadh, Saudi Arabia. Exhibi...
21/01/2026
BCNEXXT, the developers of the advanced playout platform Vipe, today announced that OKAST, the monetization-first OTT platform provider, is using BCNEXXT's ...
21/01/2026
Revamped design enables advanced capabilities, leading with powerful IP to HDMI conversion
Magewell, developer of innovative, high-performance video I/O and I...
21/01/2026
Jan 20th 2026, Changsha Kiloview today announced the launch of two major additions to its AV-over-IP ecosystem: the AVX24-4 Media HUB and KiloLink Station, ma...
21/01/2026
Latest version of enterprise-class Buttons brings simple, coherent control to more than 700 professional devices and applications
Bitfocus, the specialist in ...
21/01/2026
Clear-Com is pleased to announce the appointment of Kari Eythorsson as the new Regional Sales Manager (RSM) for Southeast Asia & Australia, based in Singapore,...
21/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
21/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
21/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
21/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
21/01/2026
Back to All News
Netflix Presents Our Italian 2026 Slate: The Year of the Stars
(Photo credit: Virginia Bettoja / Netflix)
Entertainment
21 January 2026
Gl...
21/01/2026
From skilled trades to startups, AI's rapid expansion is the beginning of th...