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

29/12/2025

San Francisco 49ers Strike Gold With Halftime Laser Spectacular

San Francisco 49ers Strike Gold With Halftime Laser Spectacular Stunning display caps $200 million renovation of Levi's Stadium tech By Dan Daley, Audio Ed...

29/12/2025

The Cup's Around the Corner: An Inside Look at Broadcast Preparations for the 2026 FIFA World Cup With FIFA's Oscar Sanchez

The Cup's Around the Corner: An Inside Look at Broadcast Preparations for th...

29/12/2025

SVG's Best of 2025: Longform Video

SVG's Best of 2025: Longform Video Watch the standout keynote conversations, deep dives, and panel discussions from the year for free on SVG PLAY! By Brand...

29/12/2025

25 Ways Spotify Leveled Up Your Listening in 2025

From crisper Lossless audio and immersive music videos in beta to new Audiobooks+ plans, custom transitions between tracks, and in-app Messages, we keep levelin...

29/12/2025

TV Tech's Top Regulatory Stories of the Year

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

27/12/2025

TV Tech's Top Data Dumps of 2025

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

26/12/2025

TV Tech's Top Streaming Stories of 2025

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

26/12/2025

TV Tech's Top Data Points of 2025

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

25/12/2025

Make Spirits Bright With Holiday Hits on GeForce NOW

Holiday lights are twinkling, hot cocoa's on the stove and gamers are settling in for a well-earned break. Whether staying in or heading on a winter getawa...

24/12/2025

What is AI good for?

What is AI good for? Posted by MTI Film on December 24, 2025 What is AI good for? What is AI good for? It's been three years since ChatGPT first cap...

24/12/2025

AI in 2026: More Collaboration, Less Hype

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

24/12/2025

Carr Lays Out FCCs 'Key Wins in 2025'

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

24/12/2025

CES: Cineverse Unveils New Features for Cinesearch

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

24/12/2025

IES, AES Promote Graham Kirk, Brienne Willcock

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

24/12/2025

Ad Tech and CTV Experts Forecast 2026's Biggest Trends

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

24/12/2025

The Boyfriend' Season 2 Unveils Heartwarming Trailer, Key Art, and Participants' Profiles

Back to All News The Boyfriend' Season 2 Unveils Heartwarming Trailer, Key...

24/12/2025

Love, Fights, and Everything in Between: Badly in Love' Returns for Season 2

Back to All News Love, Fights, and Everything in Between: Badly in Love' Returns for Season 2 Entertainment 24 December 2025 GlobalJapan Link copied t...

24/12/2025

December 23, 2025

Scripps Research study links sleep variability with sleep apnea and hypertension How consumers' digital activity trackers could enable personalized health s...

23/12/2025

How guilas Cibaeas Dominican Winter League Games Are Locally Produced for Global Audience

How guilas Cibae as Dominican Winter League Games Are Locally Produced for Glob...

23/12/2025

CAMB.AI Enables European Athletics to Offer Multi-Language Support

CAMB.AI Enables European Athletics to Offer Multi-Language SupportPlan is to eventually offer translation into all languages spoken in EuropeBy Ken Kerschbaumer...

23/12/2025

Analysis: As Sports Media Values Trend Negative, Scarcity and Quality Are King

Analysis: As sports media values trend negative, scarcity and quality are king By Callum McCarthy, Editor-at-Large Monday, December 22, 2025 - 14:08 Print ...

23/12/2025

ESPN, Disney, and NBA Return to the Animated Altcast Fray With Second Edition of Dunk the Halls'

ESPN, Disney, and NBA Return to the Animated Altcast Fray With Second Edition of...

23/12/2025

End the Year on a High Note and Donate to the Sports Broadcasting Fund Today!

End the Year on a High Note and Donate to the Sports Broadcasting Fund Today! By Ken Kerschbaumer, Editorial Director Tuesday, December 23, 2025 - 12:25 pm ...

23/12/2025

Find Your Perfect Holiday Romance Listen With These Swoon-Worthy Audiobooks

The year is winding down, the weather outside is frightful, and it's the perfect time to escape into a story that warms the heart. For listeners looking for...

23/12/2025

L3Harris Receives Letter of Intent from Kratos Defense for Production of Large Hypersonic Solid Rocket Motors

A Zeus motor is hot fire tested at L3Harris' Camden, Arkansas, solid rocket ...

23/12/2025

FCC Bans All New Foreign-Made Drones

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

23/12/2025

Gray Media Renews Its NBC Affiliation Agreements

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

23/12/2025

Lightware to showcase breakthrough Google Meet and TPN MM...

Lightware will exhibit several major product innovations at ISE 2026, including the new USB-C BOOSTER-V1, Google Meet. integration for various Taurus UCX models...

23/12/2025

Nielsen, Roku Expand Measurement Partnership

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

23/12/2025

PwC: Streaming Market Shifting to 'Scale and Sustainability'

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

23/12/2025

Inside the Gray Innovation Lab

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

23/12/2025

ESPN Renews Deal for Heisman Trophy Coverage

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

23/12/2025

Gray Media to Acquire WBBJ from Bahakel Communications

Share Share by: Copy link Facebook X Whatsapp Pinterest Flipboard...

23/12/2025

Taking the Stage at Carnegie Hall-On a Global Scale

Taking the Stage at Carnegie Hall-On a Global Scale Boston Conservatory Orchestra students reflect on their epic concert marking the 80th session of the UN Gene...

23/12/2025

Netflix's 'The Great Flood' and 'Culinary Class Wars 2' Top Global Charts Simultaneously

Back to All News Netflix's The Great Flood and Culinary Class Wars 2 Top Gl...

23/12/2025

'Stranger Things' By the Numbers: How the Global Phenomenon Shaped Culture

Back to All News Stranger Things By the Numbers: How the Global Phenomenon Shap...

23/12/2025

Boost Performance with a System Effectiveness Review

Experience the power of WO Automation for Radio's newest service, the System Effectiveness Review. Designed to help you achieve more, a System Effectiveness...

23/12/2025

VEON's Beeline Kazakhstan and Rakuten Symphony Collaborate to Advance Next-Generation Connectivity and Digital Infrastructure

23 Dec 2025 VEON's Beeline Kazakhstan and Rakuten Symphony Collaborate to A...

23/12/2025

How Steamy Can It Get? Single's Inferno' Season 5 Premieres January 20, Previews All-Out Flirting War in Sizzling Teaser

Back to All News How Steamy Can It Get? Single's Inferno' Season 5 Pre...

23/12/2025

33 Million Global Viewers on Netflix Watched Jake Paul vs. Anthony Joshua's Epic Six-Round Battle

Back to All News 33 Million Global Viewers on Netflix Watched Jake Paul vs. Ant...

23/12/2025

December 22, 2025

New technique lights up where drugs go in the body, cell by cell Scripps Research scientists developed a technique that maps drug binding in individual cells th...

22/12/2025

SVG New Sponsor Spotlight: Presidio's Neerav Shah on the Role of Its Captivate and Resonate Platforms in Sports Production

SVG New Sponsor Spotlight: Presidio's Neerav Shah on the Role of Its Captiva...

22/12/2025

Hitting the Bullseye: Sky Sports Readies Itself for the Biggest PDC World Darts Championship to Hit Ally Pally Yet

Hitting the bullseye: Sky Sports readies itself for the biggest PDC World Darts ...

22/12/2025

Unique Skillset: Bringing New Directors to the World of Darts at The Worlds with Sky Sports

Unique skillset: Bringing new directors to the world of darts at The Worlds with...

22/12/2025

Gravity Media Prepares for a Flight of Fancy With the PDC World Darts Championship 2025 for Sky Sports

Gravity Media prepares for a flight of fancy with the PDC World Darts Championsh...

22/12/2025

One Hundred and Eighty: Gravity Media on Hitting the Production Bullseye at the World Darts Championship 2025

One hundred and eighty: Gravity Media on hitting the production bullseye at the ...

22/12/2025

The Famous Group's Jon Slusser on Fascinating Fans Through Immersive Content Experiences

The Famous Group's Jon Slusser on Fascinating Fans Through Immersive Content...