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 ...

06/09/2026

Dolby and MagentaTV Bring Fans Closer to the FIFA World Cup 2026 in Germany with Dolby Vision and Dolby Atmos

June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...

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...

11/06/2026

NABs LeGeyt Urges Congress to Limit NFL's Antitrust Exemption

Share Copy link Facebook X Linkedin Bluesky Email...

11/06/2026

Fubo Inks New Distribution Agreement with NBCUniversal

Share Copy link Facebook X Linkedin Bluesky Email...

11/06/2026

Kiloview to Showcase Broadcast-Grade AV-over-IP Solutions...

Kiloview, a leading innovator in AV-over-IP video solutions, will return to InfoComm 2026 (Booth# N8327) with broadcast-grade AV-over-IP solutions designed for ...

11/06/2026

Australian Games Industry Glossary of Terms

Australian Games Industry Glossary of Terms 10 June 2026 From DAU and EULA to COT and QADE, here's a list of game industry terms, industry jargon and their...

11/06/2026

Berklee's Tonya Butler Named Music Business Educator of the Year

Berklee's Tonya Butler Named Music Business Educator of the Year The Music Business Association honored Butler at its annual Bizzy Awards. June 10, 2026 ...

11/06/2026

Ann Mincieli to Receive Honorary Doctorate at Berklee NYC Graduate Commencement

Ann Mincieli to Receive Honorary Doctorate at Berklee NYC Graduate Commencement The five-time Grammy-winning engineer and producer, known for her longstanding...

10/06/2026

SVG Sit-Down: Team Whistle's Joe Caporoso on Building World Cup Content Around Fans, Culture, IRL Experiences

DAZN-owned digital-media company launches three fan-first series leaning into cr...

10/06/2026

Clear-Com Appoints Jason Dino as Southwest Regional Sales Manager

Clear-Com has announced the appointment of Jason Dino as Southwest Regional Sales Manager USA, covering Southern California and the Southwest region. Dino joins...

10/06/2026

Caretta Research: 2026 World Cup Revenue Growth Due to More Matches; Rights Revenue Up 32%

An 11% decrease in number of global broadcast deals reflects the organization...

10/06/2026

Women Without Boundaries Awards Are Back!

The Women Without Boundaries Awards recognize women whose work is advancing the future of media, broadcast, AV, workplace technology, digital experience, and re...

10/06/2026

On Eve of World Cup Kickoff, FIFA and HBS Offer Deep Dive into IBC Operations, Commentary, and Ref Cam

Today is match day minus two for FIFA and HBS. On Thursday, there will be two ma...

10/06/2026

SES Supporting World's Biggest Soccer Tournament Broadcast Distribution Worldwide

SES is supporting broadcast distribution of the world's biggest football tou...

10/06/2026

BirdDog Achieves Full NDI 6.3 Compatibility Across Entire Product Line

NDI has announced that BirdDog has become the first hardware manufacturer to achieve full NDI 6.3 compatibility across its complete lineup of cameras, encoders,...

10/06/2026

Emmy Award-Winning Audio Team To Present at SVG Audio Symposium

Vince Caputo and Scott Carter, winners of the 2026 Sports Emmy for Outstanding Post Produced Audio have been announced as presenters for the 2026 SVG Advanced A...

10/06/2026

FOX One Set to Deliver World Cup in 4K; Personalization via AI Drives Experience

FOX One today unveiled a slate of new product features and enhancements designed to elevate the viewing experience for fans on the official streaming platform o...

10/06/2026

PWHL Scales Broadcast Operation in Season 3, Relying on World-Feed Model and Key Vendors

Primary production partners Dome Productions and Raycom Sports once again played...

10/06/2026

NFL Films Application Deadline for Women in Sports Filmmaking Experienceship, Augusts 26-29 in Mount Laurel, Closes June 18

The Women in Sports Filmmaking Experienceship is an immersive professional devel...

10/06/2026

NBAs In-House Broadcast Ops & Engineering Teams Power Global Finals Coverage From NYC, San Antonio

The league has expanded its HSAN architecture for the NBA Finals to manage more ...

10/06/2026

MoonPay X Games League Winter Draft Set for September 16 at Cosm Los Angeles

The inaugural MoonPay X Games League (XGL) Winter Draft will take place Wednesday, September 16, 2026 at Cosm Los Angeles from 7-9 p.m. PT. The event will strea...

10/06/2026

University of Oklahoma and Learfield Extend 30-Year Partnership, Announce Sooner Evolution Center

The University of Oklahoma (OU) Athletics Department and Learfield have announce...

10/06/2026

VSF Releases RIST Satellite-Hybrid Out-of-Band Specification

The Video Services Forum (VSF) has released TR-06-4 Part 8, a new specification for RIST Satellite-Hybrid: Out-of-Band Method. The specification creates a mecha...

10/06/2026

Riedel Artist Intercom Powers Live Neurovascular Conference in Lisbon

Riedel Communications provided the communications infrastructure for the 14th World Live Neurovascular Conference (WLNC) in Lisbon, supporting live medical proc...

10/06/2026

Sundance Film Festival 101: Films by LGBTQ+ Directors

A still from The Doom Generation by Gregg Araki (Courtesy of Sundance Institute) By Lucy Spicer Have you checked out our Sundance Film Festival 101 list yet...

10/06/2026

GearExpo UK: Interfaces & Mic Preamp Update

Get Hands-On with Interfaces & Mic Preamp Brands If youre after a new interface or preamp, then GearExpo UK is the place to be! Well have a whole host of au...

10/06/2026

MONO Music Conference 2026

November 13-14 2026, The Midway, San Francisco Following their recent rebranding, MONO Music Conference (formerly Music Expo) have officially announced thei...

10/06/2026

ebbandflow launch with deFORM

Debut instrument free for limited time deFORM is the debut release from newly founded developer ebbandflow, and it's being offered as a free download fo...

10/06/2026

Alone Australia Season 4: Meet the Cast

Alone Australia Season 4: Meet the Cast 10 June, 2026 Media releases WATCH THE TRAILER Smash-hit survival series Alone Australia drops its highly anticipa...

10/06/2026

DEADLY THEN, DEADLY NOW, DEADLY ALWAYS: SBS & NITV IGNITE NAIDOC WEEK 2026 WITH 50 YEARS OF DEADLY

DEADLY THEN, DEADLY NOW, DEADLY ALWAYS: SBS & NITV IGNITE NAIDOC WEEK 2026 WITH ...

10/06/2026

Rohde & Schwarz and TRUMPF advance laser-based drone defense with THORIS LCS

Rohde & Schwarz and TRUMPF advance laser-based drone defense with THORIS LCS Rohde & Schwarz is showcasing THORIS at ILA 2026: A sovereign, end to end counter...

10/06/2026

MAHLE and Rohde & Schwarz develop application for sensor testing of modern driver assistance systems

MAHLE and Rohde & Schwarz develop application for sensor testing of modern drive...

10/06/2026

NFVF CALL FOR FUNDING APPLICATIONS: PRODUCTION & DEVELOPMENT 2026/27

Production and Development Funding supports the creation of compelling, commercially viable, artistic and culturally relevant South African screen content. Deve...

10/06/2026

Nielsen launches Four-Screen Ad Deduplication measurement on YouTube campaigns in Japan

Media buyers and sellers can now compare YouTube reach from computer, mobile, an...

10/06/2026

Ecoflow X Launches as Experimentation Arm for Sustainabil...

Accedo, Humans not Robots, and the Institution of Engineering and Technology (IET) have announced the launch of Ecoflow X. Formerly an IBC Accelerator project, ...

10/06/2026

Frequency Appoints James Smith as General Manager - Monet...

Frequency, the engine powering the world's leading streaming television channels, today announced that James Smith has joined the company as General Manager...

10/06/2026

Riedel Artist at the Heart of the 14th World Live Neurova...

At the 14th World Live Neurovascular Conference (WLNC) in Lisbon, Riedel Communications provided the communications infrastructure for live medical procedures s...

10/06/2026

Globecast Unveils Content Exchange Platform Powered by Or...

Globecast, a leading provider of broadcast, media, and entertainment managed services, today announced the launch of its Content Exchange platform powered by Or...

10/06/2026

Venues and integrators shift toward professional recharge...

Klvr will showcase how venues, integrators and production teams are rethinking disposable battery usage at InfoComm 2026 (Las Vegas, June 17-19, booth #N6311). ...

10/06/2026

VSF Releases Specification for RIST Satellite Hybrid Out-...

The Video Services Forum (VSF) has further enhanced the Reliable Internet Streaming Transport (RIST) protocol by incorporating a new feature, RIST Satellite-Hyb...

10/06/2026

Microphone Maker Audix Adds Eric Reese as VP

Share Copy link Facebook X Linkedin Bluesky Email...

10/06/2026

NVIDIA Accelerates Google DeepMind's DiffusionGemma for Local AI

Today, Google DeepMind released DiffusionGemma - an experimental open model built for exceptionally fast text generation. NVIDIA has optimized DiffusionGemma to...

10/06/2026

For Robotaxis, Safety Must Be Built In, Not Bolted On

A car pulls up to the curb. The app says, Your ride is here. No one's in the driver's seat. For people who live in one of the dozens of cities now hos...

10/06/2026

VEON's Banglalink Brings Every World Cup 2026 Match to Football Fans in Bangladesh on Toffee

10 Jun 2026 VEON's Banglalink Brings Every World Cup 2026 Match to Football...

10/06/2026

How to watch every ICC Womens T20 World Cup 2026 match live on Sky Sports

Wednesday 10 June 2026 How to watch every ICC Women's T20 World Cup 2026 match live on Sky Sports Where is the ICC Women's T20 World Cup 2026 availabl...

10/06/2026

PRLA brings first-ever Beautifully Clean Oral Care TV campaign to screens nationwide with Sky

Wednesday 10 June 2026 P RLA brings first-ever Beautifully Clean Oral Care'...

10/06/2026

Sky reveals pulse-pounding first teaser trailer for upcoming crime drama Fightland

Wednesday 10 June 2026 Sky reveals pulse-pounding first teaser trailer for upco...

10/06/2026

Riedel Artist at the Heart of the 14th World Live Neurovascular Conference

Wuppertal June 10, 2026 Riedel Artist at the Heart of the 14th World Live Neurovascular ConferenceAt the 14th World Live Neurovascular Conference (WLNC) in Li...