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 ...

09/10/2026

Dolby Expands Dolby OptiView Platform with New Capabilities at IBC 2026

September 10 2026, 06:00 (PDT) Dolby Expands Dolby OptiView Platform with New Capabilities at IBC 2026 New Sports Intelligence helps providers better unders...

07/10/2026

Dalet Flex LTS Delivers Smarter Media Operations from Ingest to Distribution

Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...

23/09/2026

University of Washington's New Sundodger Studios Leverages ST 2110 to Bring Broadcast, Videoboard, and Creative Under One Roof

Four control rooms support B1G+ streams, videoboard shows, creative content, and...

23/09/2026

Mountain West Conference Moves Replay Operations West, Cutting Late-Night Hours

By Andrew Cohen, SVG Coorespondant The Mountain West debuted its new Replay Operations Center at the start of this football season, bringing real-time collabor...

23/09/2026

SVG Students to Watch: Brian Short, Ball State University

The Taylorville, IL, native is pushing creative boundaries at Ball State, gaining reps across directing, technical directing, tape, and more than 100 ESPN+ broa...

23/09/2026

The Musical and the Power of Spiteful Thinking

Alexander Heller, Nevada Jose, Will Brill, and Giselle Bonilla pose with cast members at The Musical premiere during the 2026 Sundance Film Festival at Eccles...

23/09/2026

The Crow Hill Company release Children's Choir

Includes natural and processed patches The Crow Hill Company's latest sample library captures a children's choir comprising a troupe of boys perform...

23/09/2026

Kreuzberg Audio reveal Oberton

Plug-in offers six bands of saturation Kreuzberg Audio's product range includes a selection of plug-ins and virtual instruments aimed primarily at hard-...

23/09/2026

SoundBridge 3.2.0 arrives

Latest DAW update now live SoundBridge have announced that the latest update for the remote-collaboration-focused DAW is now available. The release of Sound...

23/09/2026

Koori Knockout returns home exclusively to NITV and SBS On Demand in 2026

Koori Knockout returns home exclusively to NITV and SBS On Demand in 2026 11 September, 2026 Media releases Fans can catch all the live action exclusively ...

23/09/2026

Rohde & Schwarz acquires NEOSAT and PHYTRONIC and strengthens its competencies in sovereign satellite communications

Rohde & Schwarz acquires NEOSAT and PHYTRONIC and strengthens its competencies i...

23/09/2026

NFVF SEDIBA CREATIVE ENTERPRISE PROGRAMME CALL FOR APPLICATIONS

1. ABOUT THE PROGRAMME The National Film and Video Foundation (NFVF) invites applications from experienced producers who own or manage a South African product...

23/09/2026

CALL FOR THE SEVENTH PRESIDENTIAL EMPLOYMENT STIMULUS PROGRAMME(PESP 7) FOCUSED ON THE AUDIO-VISUAL INDUSTRY IS OPEN

The National Film and Video Foundation (NFVF) is pleased to announce the opening...

23/09/2026

NHK Technologies Inc. Chooses Calrec for Sports Production

Download Now! To receive a short case study showcasing NHK Technologies, Inc. (NT) s audio setup, please enter the following details: -- First Name* Fir...

23/09/2026

McDonald's takes top spot as New Zealand's fast-food tastes evolve, according to Nielsen

Nielsen CMI data reveals a changing fast-food landscape, with value, convenience...

23/09/2026

AFP, Dalet To Collaborate On News Video Provenance, Authenticity

Share Copy link Facebook X Linkedin Bluesky Email...

23/09/2026

Spectrum News NECN Launches Across New England

Share Copy link Facebook X Linkedin Bluesky Email...

23/09/2026

COW Jobs: Blender on Windows - Generalist - Remote

COW Jobs: Blender on Windows - Generalist - Remote Brie Clayton September 23, 2026 0 Comments Application Users - Blender on Windows - Generalist Se...

23/09/2026

Bitfocus wins IBC2026 Best of Show Award for latest Butto...

Version 1.8 recognised for new workflow tools, boosted control panel flexibility and ease of integration into IP networks...

23/09/2026

Hiltron Reports a Successful IBC2026

Hiltron Communications reports a successful 2026 International Broadcasting Convention, held at the RAI Amsterdam. Exhibiting on stand A37 in Hall 1, Hiltron ex...

23/09/2026

LiveU Showcases AI Driven Production Alongside Resilient...

Reinforcing its long-term commitment to the Middle East and North Africa (MENA) broadcast market, LiveU is presenting the Q Era at CABSAT 2026, on Stand H1-D35 ...

23/09/2026

AFP and Dalet Partner to Strengthen the Provenance and Au...

Agence France-Presse (AFP), a global news agency, and Dalet, a leading technology and service provider for media-rich organizations, today announced a partnersh...

23/09/2026

Berklee Connect Unlocks the Power of a Global Network

Berklee Connect Unlocks the Power of a Global Network Katie Vitolins BM '04 knows firsthand what Berklee's alumni community can make possible. Now she...

23/09/2026

Study: Renewals for Streaming Shows Continue to Decline

Share Copy link Facebook X Linkedin Bluesky Email...

23/09/2026

Study: More Than 4 in 10 U.S. Adults Own or Are Interested in Smart Glasses

Share Copy link Facebook X Linkedin Bluesky Email...

23/09/2026

Television Critics Association Revises Bylaws to Address AI

Share Copy link Facebook X Linkedin Bluesky Email...

23/09/2026

eX Celebrates Completion of Holland Mich. FTTP Network

Share Copy link Facebook X Linkedin Bluesky Email...

23/09/2026

Gray Media Renews Ohio Valley Conference Deal

Share Copy link Facebook X Linkedin Bluesky Email...

23/09/2026

QuickLink StudioPro Powers Next Generation Student Media...

Westminster Schools, a K through 12 school in Atlanta, Georgia with approximately 2,000 students, has transformed its student broadcast and digital storytelling...

23/09/2026

UK Pavilion Brings Leading British Technology to CABSAT a...

The 2026 edition of CABSAT and SATExpo may have a new home and dates in the diary, but it still retains a strong presence from UK companies in the GREAT Britain...

23/09/2026

Glensound marks 60 years with new audio developments at C...

Glensound will return to CABSAT with new developments in professional monitoring and Dante interfacing, alongside its established commentary, esports and parlia...

23/09/2026

Guy Martin's Proper Jobs returns for third series

A great watch - Radio Times TV's most likeable proper bloke - Daily Telegraph 23rd September 2026, London: Guy Martin returns to free streaming service...

23/09/2026

Sky Sports to show England Mens tour of South Africa as part of Cricket South Africa rights deal

Wednesday 23 September 2026 Sky Sports to show England Men's tour of South ...

23/09/2026

Comscore Partners with datafuelX to Bring Seamless Currency Adoption Into a Comprehensive Planning and Stewardship Workflow

Comscore Partners with datafuelX to Bring Seamless Currency Adoption Into a Comp...

23/09/2026

SES Appoints Michel Scholer to Board of Directors

Luxembourg, 23 September 2026 - SES today announced the appointment of Mr. Michel Scholer, Secretary General of the Luxembourg Government and Chief of Staff to ...

23/09/2026

New RT series Ceol le Chile amplifies the multicultural voices of Ireland today

RT One and RT Player, Friday 25 September Ceol le Ch ile, a new series that follows Irish artists as they collaborate with musicians from diverse background...

23/09/2026

RT true crime podcast Unsolved reveals significant new evidence in the case of missing person Philip Cairns

Available now on RT Listen New information has come to light in the case of mi...

23/09/2026

Sakeena Fiza Helps NVIDIA Hardware Succeed at Scale

When Sakeena Fiza describes her work as a validation engineer at NVIDIA, she does so in terms more befitting a detective story than a world-class engineering la...

22/09/2026

Young Journalist Award 2026: Meet the Final 12

From Malaysia to Mexico and from DR Congo to Ukraine, this year's 12 finalists for the 2026 Thomson Foundation Young Journalist of the Year award tell extra...

22/09/2026

ESPN, Precision Lasers Light Up NHL Player Media Tour in Las Vegas

The annual preseason content-gathering event brought 36 NHL players to Las Vegas, where ESPN used 2.5 kilowatts of laser power and a motion-control camera syste...

22/09/2026

Neumann Introduces KK 104 A and KK 105 A Wireless Capsule Heads

Neumann has introduced the KK 104 A (cardioid) and KK 105 A (supercardioid) wireless capsule heads, succeeding the KK 204 and KK 205. The new capsules are compa...

22/09/2026

NFL and TMRW Sports Announce Pro Flag Showcase During Super Bowl LXI Week

The NFL and TMRW Sports have announced a new annual Pro Flag Showcase to be held during Super Bowl LXI week in Los Angeles. The event will feature top flag foot...

22/09/2026

Washington State University Unveils New Daktronics Video Board and Audio System at Gesa Field

Washington State University has unveiled a new end zone video display and audio ...

22/09/2026

SVG Sit-Down: Disney's Dave Johnson on ESPN's New 4K HDR Distribution Pipeline and What It Means for Super Bowl LXI and Beyond

Disney's SVP of Live Operations and Engineering details the technology behin...

22/09/2026

Cosm Promotes Mazen Alawar to SVP of Marketing, Alexis Scalice to VP of Cosm Studios

Cosm has announced two senior promotions. Mazen Alawar has been promoted to SVP,...

22/09/2026

Mississippi State University Extends Camera Relationship with KOKUSAI DENKI

Mississippi State University's University Television Center has purchased four KOKUSAI DENKI SK-UHD7000-S2 cameras since 2024, with plans to add two more, a...

22/09/2026

Net Insight Appoints Christine Kjellvard as Interim CFO

Net Insight has announced that Christine Kjellvard will assume the role of interim Chief Financial Officer on November 1, 2026. Kjellvard has previously held in...

22/09/2026

Net Insight Launches Zyntai TimeNode Access PTP Grandmaster for Edge Sites

Net Insight has announced Zyntai TimeNode Access, a compact PTP Grandmaster designed for distributed edge sites. The product carries secure, precise time across...

22/09/2026

The Weight Explores the High Cost of Freedom in the Depression Era

Sam Hazeldine, Austin Amelio, Padraic McKinley, Julia Jones, and Ethan Hawke attend the premiere of The Weight at The Ray Theatre on January 26, 2026, in Park...