
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 ...
09/10/2026
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, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...
11/09/2026
Calrec will introduce two new products at IBC2026 (Stand 8.C47, RAI Amsterdam, September 11-14): the Type RT broadcast production console and the Apex M6 Modula...
11/09/2026
Grass Valley has announced AVORA, a standalone all-in-one live production solution launching at IBC2026 (Booth 9.A01 and IBC Future Tech Zone, Stand 14.C49, Sep...
11/09/2026
CAMB.AI is introducing its Streaming SDK and Streaming Dashboard at IBC2026, wit...
11/09/2026
EVS has announced XT-S, a software-defined server platform that runs multiple live production applications on a common hardware foundation. The platform debuts ...
11/09/2026
EKT is demonstrating a new Linux-based ATSC 3.0 set-top box at IBC2026. The second-generation product moves away from Android to reduce memory costs, with Linux...
11/09/2026
The Sennheiser Group will exhibit at IBC2026 (Hall 8, Booth D50, September 11-14...
11/09/2026
ESPN's Monday Night Football will open its 2026-27 season with a new renditi...
11/09/2026
Dalet has announced an integration of NVIDIA's Synthetic Video Detector AI model into Dalet Flex, enabling media organizations to identify potentially AI-ge...
11/09/2026
The Media Coding Industry Forum (MC-IF) will demonstrate Versatile Video Coding (VVC) capabilities at IBC2026 (Hall 2, Stand 2.B13), as the codec moves toward c...
11/09/2026
Sony will exhibit at IBC2026 (Hall 13, September 11-14), demonstrating products across live production, news, cinema, and immersive and spatial content workflow...
11/09/2026
Wave Central, a Domo Broadcast Company, has been named a recipient of a 2026 Tec...
11/09/2026
Studio Network Solutions (SNS) is bringing a pair of workflow updates to IBC2026...
11/09/2026
iodyne will co-exhibit with Hedge at IBC2026 (Booth 7.A36, September 11-14) and appear across three additional partner booths, marking the first public demonstr...
11/09/2026
In-venue and creative video staffers at the professional and collegiate level ha...
11/09/2026
The network will phase in HDR crew by crew while expanding Next Gen Stats integration, SkyDry availability, and onsite studio shows...
11/09/2026
CAMB.AI is introducing its new Streaming SDK and Streaming Dashboard at IBC2026,...
11/09/2026
Massive host operation at Melbourne Cricket Ground featured 54 cameras, 25,000 ST 2110 flows, REMI studio production in Stamford, and global distribution to mor...
11/09/2026
Production Anywhere Remote Kit (PARK) & AR-fueled Stage B are two key pieces to ...
11/09/2026
By Ramona Flume and Lucy Spicer
There's a particular kind of magic that hap...
11/09/2026
By Jessica Herndon
The fall film season is kicking off, and Sundance Institute-...
11/09/2026
Spark series gains compact modelling stompbox
Positive Grid's Spark amps have become a popular part of the company's line-up, offering a convenient ...
11/09/2026
New flagship sequencing plug-in revealed
Rapid Flow have just launched a new 16-track sequencer plug-in which they say has been designed for total rhythmic...
11/09/2026
Rohde & Schwarz unveils the air-cooled R&S TM1 medium-power UHF transmitter at I...
11/09/2026
FIFA World Cup 2026 and Peacock's Love Island USA' Power NBCU-Versant ...
11/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
11/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
11/09/2026
Lightware has announced the launch of LARA (Lightware Advanced Room Automation) 2.0, a major upgrade to its built-in room automation platform, introducing impro...
11/09/2026
10 September 2026 - MusiMap, the B2B music intelligence company that is transforming how companies can harness the emotional power of music to reach consumers a...
11/09/2026
Matrox Video today announced an integration between Matrox ORIGIN and NVIDIA Holoscan for Media, enabling Matrox ORIGIN media services to be provisioned, config...
11/09/2026
Net Insight today announced that its cloud-native live media orchestration is now available through Oracle Cloud Marketplace, providing broadcasters, production...
11/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
11/09/2026
Version 1.8 will bring advanced routing control, new workflow tools, boosted control panel flexibility and ease of integration into IP networks...
11/09/2026
Ikegami announces four additions its UNICAM XE range of 4K-UHD cameras with the introduction of the UHK-X700VN, UHK-X750VN, UHK-X600VN and UHK-X650VN. Developed...
11/09/2026
DHD.audio has chosen IBC2026 as the launch venue for a major new addition to its broadcast sound production platform: the MX3 console range. MX3 retains the mod...
11/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
11/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
11/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
11/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
11/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
11/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
11/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
11/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
11/09/2026
New standalone solution gives production teams everything they need to create, produce and deliver live content from one flexible system.
Grass Valley today an...
11/09/2026
Recognition honors the development of FPV drone camera systems for live sports broadcast coverage
Wave Central, a Domo Broadcast Company that develops advanced...
11/09/2026
Teradek, the industry leader in zero-delay wireless video solutions, announced the launch of Bolt 7, which now includes a unified wireless video and data system...
11/09/2026
The ACT Entertainment tvONE and Green Hippo Pixel Academy has released its autumn course schedule, with hands-on training dates in September, October and Novemb...
11/09/2026
LA JOLLA, CA-Transthyretin amyloid disease (ATTR) is a progressive, life-threatening condition caused when the protein transthyretin (TTR) breaks apart and aggr...