
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 ...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
09/07/2026
With 50+ cameras, three trucks, 60+ EVS channels, RFID hole-card workflows, and ...
09/07/2026
A recent graduate from Westchester, NY, this experienced technician has already started her first gig in the industry, as a REMI A2 Comms Specialist at ESPN
In...
09/07/2026
Live sports production is a fast-paced industry with no signs of slowing down. W...
09/07/2026
From a rooftop studio in Manhattan, multiple Germany-based companies share respo...
09/07/2026
Overtime has announced a content partnership with FOX One to produce Race to Glo...
09/07/2026
Clear-Com has announced that Ross Production Services (RPS) has standardized on ...
09/07/2026
The NFL has announced that NetApp will return as Presenting Partner of the NFL Madrid Game, featuring the Atlanta Falcons against the Cincinnati Bengals at the ...
09/07/2026
The R&A and Cisco have announced a multi-year partnership making Cisco the Official Network Supplier of The R&A and its Championships. Cisco will deploy AI-read...
09/07/2026
Fox Television Stations, Extreme Reach (XR), and LTN have announced the completi...
09/07/2026
Kiswe has announced a partnership with Wynn Records to launch the Wynn Records Network streaming platform, debuting Saturday, July 11 with a Salita Promotions b...
09/07/2026
NEP Europe has announced a new multi-year agreement with Wimbledon Broadcast Ser...
09/07/2026
Thropic Games, a company offering casual mobile games tied to fan fundraising for sports programs, has announced a pre-seed funding round led by The Famous Grou...
09/07/2026
Game Creek Video has reached an agreement with Grass Valley to purchase 10 K-Frame production switchers as part of a two-year fleet expansion. Two systems have ...
09/07/2026
Gravity Media is delivering a three-hub remote production workflow for ITV's...
09/07/2026
A new report from Quickplay and Caretta Research, The Broadcaster Revolution Wi...
09/07/2026
DAZN, the world's leading sports entertainment platform, has announced a long-term strategic partnership with the Esports World Cup Foundation to serve as t...
09/07/2026
The regional sports network is staying busy this summer with broadcasts of the N...
09/07/2026
Latest analogue-emulation plug-ins revealed
Universal Audio have just added two new analogue-emulation plug-ins to their DSP-powered UAD line-up. Developed ...
09/07/2026
Limited-edition mic celebrates rock icon
Neumann have partnered with the Bon Scott Estate to create a limited-edition version of the U 47 FET that honours b...
09/07/2026
Handles organisation, updates, troubleshooting & more
Created by pro-audio software developer Julian Worden, Plugin Station from Julian Michael Technologies...
09/07/2026
Introduces new $1 million advance programme
LANDR have just announced the next phase of their Fair Trade AI programme, a pioneering opt-in music-licensing p...
09/07/2026
Four new titles now available
Spitfire Audio have just introduced four new titles in their Originals range, bringing the total count of libraries in the low...
09/07/2026
SBS statement Royal Commission on Antisemitism and Social Cohesion
9 July, 2026
Media releases
SBS acknowledges the gravity of the matters before the Roy...
09/07/2026
08 July 2026, Johannesburg - The National Film and Video Foundation (NFVF), an a...
09/07/2026
Blackmagic Design Announces New UltraStudio Express 3G
Brie Clayton July 9, 2026
0 Comments
New extremely portable capture and playback models with 3G...
09/07/2026
Miri Introduces Self-Service Cellular Data and SIM Card Management Platform for ...
09/07/2026
Riedel Communications today announced that the Hong Kong Jockey Club (HKJC), one of Asia's most prestigious horse racing organizations, has significantly up...
09/07/2026
Leading North American mobile production facility provider standardizes on Grass Valley's fully IP-native K-Frame production switchers for its fleet of next...
09/07/2026
Miri Technologies Inc. is rolling out a new online portal that provides customers and resellers with self-serve management tools and usage analytics for the com...
09/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/07/2026
Cinematographer Aakash Subramaniam, WICA faced a conceptual challenge: how could he make a film about dying that doesn't feel like one? The film, Our Weird...
09/07/2026
Years in the making, this intimate documentary draws on rare access to Leah Crouchers family to tell the story behind one of Britains most high-profile missing ...
09/07/2026
Thursday 9 July 2026
Enjoy Gigafast speeds and Ultimate TV pack for less
The latest deals have dropped from Sky TV and Sky Broadband, the award-winning provid...
09/07/2026
Hands up who would like to dress up as a giant crisp packet?
The call that went out across the agency as our anti-litter campaign, Wish you weren't here fo...
09/07/2026
This GFN Thursday brings more games, more power and more ways to play on GeForce NOW.
The cloud gaming service is expanding with a new GeForce RTX 5080-powere...
08/07/2026
The end of the Big A' marks the demise of one more iconic sports venue and its signature sound
After 132 years as one of the preeminent horse-racing track...
08/07/2026
Memphis Athletics and Learfield have signed a long-term renewal to their 25-year relationship, which sees Learfield's Tiger Sports Properties continue repre...
08/07/2026
MLB All-Star Week returns to Philadelphia for the first time in 30 years as Amer...
08/07/2026
Former Wall Street Video event expanded to include all Enterprise sectors
SVG Enterprise has announced the inaugural Enterprise Video Summit, taking place Oct....
08/07/2026
An offseason project enhanced eight video displays around the venue in time for ...
08/07/2026
Kaseya Center has a ton of new features that weren't available to the indust...
08/07/2026
The International Federation of Film Critics (FIPRESCI) and the Sundance Film Festival are pleased to announce the establishment of a FIPRESCI jury beginning wi...
08/07/2026
Latest analogue-emulation plug-ins revealed
Universal Audio have just added two new analogue-emulation plug-ins to their DSP-powered UAD line-up. Developed ...
08/07/2026
Turn any audio loop into a playable kit
Pitch Innovations have recently introduced an interesting new tool that's capable of creating playable kits from...
08/07/2026
Adds new keyboard-split function
MonkeyC have recently launched an update that overhauls their powerful software sampler. Described as the sampler that mad...
08/07/2026
Four new delay algorithms & dual-engine functionality
Strymon have just announced that the much-anticipated MX version of their hugely popular delay pedal i...
08/07/2026
Well over half of Australia have tuned in to watch the FIFA World Cup on SBS
7 July, 2026
Media releases
Australia's Round of 32 match against Egypt a...