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...

24/06/2026

NoiseWorks Audio add Mouth De-Click to VoiceAssist

Plus: VoiceAssist Basic now available to UA LUNA users NoiseWorks Audio have just released an update that adds a new Mouth De-Click module to the Advanced t...

24/06/2026

Gator introduce the Frameworks Studio Mic Boom 2000

New heavy-duty mic stand joins range The latest arrival to Gator's Frameworks family introduces a new heavy-duty boom stand that's been designed for...

24/06/2026

Waves V17 now available

Latest major plug-in update goes live Waves have just announced that the latest major update for their hugely popular plug-in range is now officially availa...

24/06/2026

Why Four Bars of Signal Doesn't Always Mean Good Performance

When assessing cellular coverage, many people look at the signal bars displayed on a smartphone, router or modem. More bars are often assumed to mean better per...

24/06/2026

Rohde & Schwarz THORIS sets new standard for counterUAS defense

Rohde & Schwarz THORIS sets new standard for counter UAS defense At Eurosatory 2026, Rohde & Schwarz is unveiling THORIS, a German engineered, sovereign count...

24/06/2026

Rohde & Schwarz expands voice communications modernization program for Egyptian air traffic control

Rohde & Schwarz expands voice communications modernization program for Egyptian ...

24/06/2026

Clear-Com FreeSpeak Cell Successfully Tested by RTL Deutschland in 5G Network at...

eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({...

24/06/2026

Nielsen's Q1 2026 Ad Supported Gauge

Streaming sets record high of 46.6% of ad supported TV viewing, driven by Super Bowl and Winter Olympics; overall share of ad supported TV remains steady NEW Y...

24/06/2026

FCC Flooded with Nearly 28K Comments Regarding Its Probe of 'The View'

Share Copy link Facebook X Linkedin Bluesky Email...

24/06/2026

Hearst Television Brings Ad Addressability to Local Broadcast TV

Share Copy link Facebook X Linkedin Bluesky Email...

24/06/2026

FCC Raises $3.5 Billion in AWS-3 Wireless Auction

Share Copy link Facebook X Linkedin Bluesky Email...

24/06/2026

RE:Vision Effects Announces Twixtor Standalone v 8.1 and a Sale!

RE:Vision Effects Announces Twixtor Standalone v 8.1 and a Sale! Brie Clayton June 24, 2026 0 Comments Twixtor v8.1 Standalone adds support for variab...

24/06/2026

Dreamtek Uses Full Blackmagic Workflow for Vercel Next JS Event

Dreamtek Uses Full Blackmagic Workflow for Vercel Next JS Event Brie Clayton June 24, 2026 0 Comments Blackmagic cameras, switchers, routers, recorder...

24/06/2026

Chyron LIVE Unveils New Features: Haivision StreamHub Integration, SCTE-35 Ad Insertion, and Refined Switching Tools

Chyron LIVE Unveils New Features: Haivision StreamHub Integration, SCTE-35 Ad In...

24/06/2026

Mapping an Education

Mapping an Education How composer Chloe Clarke Smith navigated her Boston Conservatory experience and brought new meaning to her work June 24, 2026 By Sara...

24/06/2026

The Next Act

The Next Act Dean Krisha Marcano's vision for a connected Theater Division, and the fund making it possible June 24, 2026 Photo by Eric Antoniou The Or...

24/06/2026

Announcing STAGES Magazine 2026

Announcing STAGES Magazine 2026 Marking a decade since Boston Conservatory and Berklee College of Music joined forces, this issue spotlights some of the groun...

24/06/2026

Rede Legislativa Chooses Appear to Support Brazil TV Ver...

In Brazil's TV 3.0 Trials, Appear's X5 is transporting live signals from Bras lia to S o Paulo over the public internet using secure, reliable next-gene...

24/06/2026

Mediaproxy partners with HVS for US broadcast market

Melbourne, Australia - 24 June 2026: Mediaproxy, the global standard for software-based IP compliance monitoring and multiviewing solutions, has named Heartland...

24/06/2026

Gray Media Launches Political 360 Digital Advertising Solution

Share Copy link Facebook X Linkedin Bluesky Email...

24/06/2026

Walmart to Pay $1.4 Billion to Acquire Ad Tech Firm Vibe.co

Share Copy link Facebook X Linkedin Bluesky Email...

24/06/2026

FCC Flooded with Nearly 28K Comments on 'The View'

Share Copy link Facebook X Linkedin Bluesky Email...

24/06/2026

First Rush Brings SDI Multicam ProRes Recording to Apple Silicon Macs

First Rush Brings SDI Multicam ProRes Recording to Apple Silicon Macs Brie Clayton June 23, 2026 0 Comments First Rush is a native macOS application d...

24/06/2026

Vertical Drama Beneath Crimson Sails Created with Blackmagic Design

Vertical Drama Beneath Crimson Sails Created with Blackmagic Design Brie Clayton June 23, 2026 0 Comments Thunder Child Productions relies on cameras&...

24/06/2026

X-Rite Pantone Adds MSI PRO MAX Displays to Pantone Validated Program for Proven Color Fidelity for Real World Colors

X-Rite Pantone Adds MSI PRO MAX Displays to Pantone Validated Program for Proven...

24/06/2026

Dara Briain forms Dara's Dull Appreciation Society for U

24th June 2026, London: Dara Briain will host brand new comedy entertainment series Dara's Dull Appreciation Society (4x40') celebrating members of th...

24/06/2026

Sky reveals wild new trailer and images for Shaun the Sheep: The Beast of Mossy Bottom

Wednesday 24 June 2026 Sky reveals wild new trailer and images for Shaun the Sh...

24/06/2026

Seven paradoxes shaping the next era of media production - Episode 1

Why Dynamic Media Facilities Matter In this series, we explore the technologies, architectures and operational realities shaping modern media operations. Along ...

24/06/2026

Comscore Announces Partnership with Amazon DSP to Expand Content Addressability to Drive Campaign Performance

Comscore Announces Partnership with Amazon DSP to Expand Content Addressability ...

24/06/2026

RT is supporting 21 Arts and Cultural Events all over Ireland this July

From Cork to Limerick to Earagail: RT is supporting 21 Arts and Cultural Events all over Ireland this July RT Supporting the Arts is delighted to spotlight...

23/06/2026

Case Study: YES Networks IP Transition Expands Production Possibilities and Redefines Workflows

When we began planning our transition from an SDI-based infrastructure to a new ...

23/06/2026

Imagine Communications Appoints Greg Garmon as SVP, Americas Video Sales

Imagine Communications has announced the appointment of Greg Garmon as Senior Vice President, Americas Video Sales. Garmon will oversee account growth and busin...

23/06/2026

Snap Promotes Emma Wakely to Head of Sports and Media Partnerships, Americas

Snap has promoted Emma Wakely to Head of Sports and Media Partnerships, Americas, succeeding Anmol Malhotra, who has been elevated to Global Head of Content and...

23/06/2026

YES Network and Gotham Sports App to Air MI New York Major League Cricket Matches

YES Network and The Gotham Sports App will air MI New York's Major League Cr...

23/06/2026

HAND Issues Persistent Digital IDs to 2026 NBA Draft Class

The Universal Talent Identifier (HAND) has issued HAND IDs to 34 top projected prospects in the 2026 NBA Draft class, including AJ Dybantsa, Cameron Boozer, and...

23/06/2026

World Boxing Launches World Boxing TV Streaming Platform

World Boxing has announced the launch of World Boxing TV, a subscription-based streaming platform built on the Joymo platform, offering live events, on-demand c...

23/06/2026

FloRacing to Stream 32 Off-Road Motorcycle Racing Events Including AMA Amateur National Motocross Championship

FloSports will stream 32 off-road motorcycle racing events on FloRacing, includi...

23/06/2026

SES Adds 14 Regional Channels and New Set-Top Boxes to ASTRA TV in Spain

SES has announced the expansion of its ASTRA TV platform in Spain with the addition of 14 regional channels in HD and UHD quality and the launch of new hybrid s...

23/06/2026

Appear Supports Rede Legislativas Contribution Workflow for Brazils TV 3.0 Trials

Appear ASA has announced its role in Rede Legislativa de R dio e TV's contri...

23/06/2026

PBS Selects LTN for Nationwide IP Video Network Across 330 Member Stations

LTN has announced that PBS has selected it as its IP video partner to modernize content distribution and contribution across more than 330 public television sta...

23/06/2026

Ease Live Powers Interactive Experience on Rally.TV for WRC

Ease Live has announced that its graphics overlay platform is powering an interactive fan experience on Rally.TV, the official streaming platform of the FIA Wor...

23/06/2026

Chyron LIVE Adds Haivision StreamHub Integration, SCTE-35 Ad Insertion, and Switcher Updates

Chyron has announced updates to Chyron LIVE, its cloud-native live production pl...

23/06/2026

ESPN Announces ESPN Fan House, Fan Engagement Hub Powered by Flowcode

ESPN has announced ESPN Fan House, a fan engagement hub powered by Flowcode, launching in August ahead of the 2026 college football season. Publicis Sports will...

23/06/2026

Sennheiser Relocates Americas Regional Hub to Nashville

The city's solid position in broadcast, entertainment, and sports attracted the major microphone manufacturer Sennheiser Group is moving its Americas Regio...

23/06/2026

Violet Audio's dMix 128 now shipping

128 channels of signal routing & DSP Announced just before the NAMM Show 2026, Violet Audio's latest digital audio matrix offers 128 channels of signal ...

23/06/2026

Minimal Audio launch Memory Rites

Latest Current expansion created by EPROM Minimal Audio have just launched the latest Current Expansion, Memory Rites. Designed in collaboration with renown...