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 ...

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...

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...

26/08/2026

New Validation Booster FAQ: What applicants need to know

Applicants interested in the Media Innovation Europe 3.0 Validation Booster call can now consult a new FAQ document addressing practical questions raised during...

26/08/2026

NWSL Moves Sunday Night Package to Roku, Expands Slate to 25 Matches in 2027

Roku Sports Channel will stream eight matches free beginning Aug. 30 as league shifts Sunday-night games away from Victory+...

26/08/2026

Inside Mountain Media Center's Hybrid-Cloud Architecture for Live Event Production

Evertz and Mobile TV Group detail how on-premises infrastructure and cloud resou...

26/08/2026

IBC 2026: Sennheiser Group to Showcase Broadcast Audio Portfolio

The Sennheiser Group will demonstrate its broadcast audio portfolio at IBC2026 (Hall 8, Booth D50), covering wireless microphone workflows, studio monitoring, a...

26/08/2026

Appear and TVTEL Deploy X20 Platform for Centralized VAR Signal Transport in Chile

Appear and Transmisiones Televisivas TVTEL Limitada have announced the deploymen...

26/08/2026

Minitech Adds Leader LPX500 and LT4670 to Rental Inventory

Leader Electronics has announced that Danish broadcast rental company Minitech has purchased a Leader LPX500 hybrid IP/SDI waveform monitor and LT4670 sync puls...

26/08/2026

IBC 2026: Encompass to Showcase Cloud Media Services

Encompass will demonstrate its Altitude media services at IBC2026 (IAMT Hub, Diamond Lounge, Hall 3, RAI Amsterdam, September 11-14). Key products on show incl...

26/08/2026

Massillon Washington High School First to Implement Daktronics Camino Platform

Daktronics has partnered with Massillon Washington High School in Ohio to install a new LED video display and implement the Daktronics Camino show control platf...

26/08/2026

Clear-Com Appoints Venuetech as Middle East Partner

Clear-Com has appointed Dubai-based Venuetech LLC as its main partner for the Middle East. Venuetech distributes professional audiovisual solutions across the r...

26/08/2026

NBC Sports NOW Debuts Two New Shows Beginning August 31

NBC Sports NOW, NBC Sports' free 24/7 streaming channel, will launch a new weekday lineup beginning Monday, August 31, including two new shows. Not So Fast...

26/08/2026

IBC 2026: Calrec to Preview ImPulseV and Argo Updates

Calrec will demonstrate updates to its ImPulseV DSP software and Argo ecosystem at IBC2026 (Stand 8.C47), including previews aligned with the EBU's Dynamic ...

26/08/2026

IBC 2026: Imagine Communications to Showcase AI Capabilities

Imagine Communications will demonstrate AI applications across its ad tech and video infrastructure portfolios at IBC2026 (Stand 1.B73, RAI Amsterdam, September...

26/08/2026

IBC 2026: Dalet to Showcase AI and Workflow Automation

Dalet will demonstrate updates to Dalet Flex, Dalet Pyramid, and Dalia, its agentic AI platform, at IBC2026 (Hall 7, Stand 7.A43). The company will also partici...

26/08/2026

Nashville Predators Tap ViewLift for New DTC Service, Pairing Streaming With Scripps Sports Broadcast Deal

Team-owned platform will stream every locally carried Predators game beginning t...

26/08/2026

Little League Baseball World Series 2026: ESPN Restores RailCam Coverage at Lamade Stadium, Upscales Cameras at Volunteer Stadium

The 12-day tournament receives the broadcaster's full onsite-studio presence...

26/08/2026

SOMA Laboratory launch the Enigma

A synth with no controls? If you're into weird and wonderful instruments, then you may already be familiar with Warsaw-based SOMA Laboratory - if you...

26/08/2026

Dreamtonics unveil Instrument X

Physical modelling orchestral instrument announced Following their recent cryptic hints, Dreamtonics have officially revealed the latest addition to their s...

26/08/2026

Bertram Brossardt visits SGL Carbon in Meitingen

Discussions at the Meitingen site on competitiveness, energy supply, and fuel cell technology Bertram Brossardt, CEO of the Bavarian metal and electrical emplo...

26/08/2026

Rohde & Schwarz USA celebrates grand opening of new manufacturing center in Frederick, Maryland

Rohde & Schwarz USA celebrates grand opening of new manufacturing center in Fred...

26/08/2026

Designing Agentic Media Workflows Humans Can Trust

For large media companies, the content archive is a gold mine. There are thousands of hours of existing, high-value assets just waiting to be tapped for highlig...

26/08/2026

Major Live Sports Events Bolster Broadcast in Nielsen's Q2 2026 Ad Supported Gauge

Ad Supported Viewing Represents 71.5% of TV in Q2 Streaming Captures Over 48% o...

26/08/2026

DAZN Accelerates U.S. Expansion with Acquisition of EverPass Media

Share Copy link Facebook X Linkedin Bluesky Email...

26/08/2026

Truthset Brings Data Rated Audiences to FreeWheel

Share Copy link Facebook X Linkedin Bluesky Email...

26/08/2026

Broadpeak Targets CTV Shopping with Click2Cart Launch

Share Copy link Facebook X Linkedin Bluesky Email...

26/08/2026

SMPTE Announces 2026 Honorees

Share Copy link Facebook X Linkedin Bluesky Email...

26/08/2026

MediaKind Beam selected by CNBC UK for cloud-connected li...

MediaKind today announced that CNBC UK has selected Beam to modernize its contribution and distribution infrastructure, bringing greater flexibility, resilience...

26/08/2026

Telestream Unveils the Next Phase of UP at IBC2026

Telestream, a global leader in media workflow technologies, today announced the next evolution of Telestream UP, expanding the cloud-native platform introduced ...

26/08/2026

SMPTE Announces 2026 Honorees

SMPTE, the home for media professionals, technologists and engineers, today announced its 2026 Honorees, recognizing individuals and organizations whose contrib...

26/08/2026

Broadpeak launches Click2Cart to mark new era in shoppabl...

New solution bridges connected TV (CTV) and ecommerce to make shoppable performance advertising easier to scale for streaming platforms and broadcasters Broadp...

26/08/2026

Scripps Research and collaborators awarded $19.5 million to establish an open-access autonomous chemistry laboratory

LA JOLLA, CA-Recent advances in robotics, automation and artificial intelligence...

26/08/2026

How WeFX Made From's' Monsters Feel Uncomfortably Real

How WeFX Made From's' Monsters Feel Uncomfortably Real Brie Clayton August 26, 2026 0 Comments From eight-foot dolls and feathered birds to R...

26/08/2026

Eleanor Roosevelt High School Elevates Student Rallies with Blackmagic Design

Eleanor Roosevelt High School Elevates Student Rallies with Blackmagic Design Brie Clayton August 26, 2026 0 Comments Student led production team uses...

26/08/2026

Grass Valley Advances Integrated Live Production for Unif...

K-Frame and Maverik X innovations extend familiar production control into AMPP, alongside new replay, audio, commentary and communications capabilities. At IBC...

26/08/2026

Magewell Expands Director and Pro Convert IP Lines at IBC...

New products continue to enable any signal, anywhere for creators...

26/08/2026

AFP and Dalet Bring Trusted Content into Every Newsroom

Dalet, a leading technology and service provider for media-rich organizations, today announced a new integrated newsroom experience with Agence France-Presse (A...

26/08/2026

Bolin Technology and ITDev Join AIMS

Share Copy link Facebook X Linkedin Bluesky Email...

26/08/2026

Enco to Highlight Caption, Translation Enhancements at IBC2026

Share Copy link Facebook X Linkedin Bluesky Email...

26/08/2026

ZOO Digital Chooses Interra Systems BATON for Quality Control

Share Copy link Facebook X Linkedin Bluesky Email...

26/08/2026

Gomez Criticizes FCC's Media Bureau on Political Advertising

Share Copy link Facebook X Linkedin Bluesky Email...

26/08/2026

Tedial to Demo AI-Driven Media Supply Chain Solutions at IBC 2026

Share Copy link Facebook X Linkedin Bluesky Email...

26/08/2026

AIMS Welcomes Bolin Technology and ITDev as Newest Member...

PTZ Camera Manufacturer and FPGA Design Specialist Join Alliance to Advance IPMX and Open AV-over-IP Standards The Alliance for IP Media Solutions (AIMS) today...

26/08/2026

ZOO Digital Selects Interra Systems BATON for File-Based...

BATON offers ZOO Digital advanced audio and video quality analysis, and scalable architecture Interra Systems, a leading provider of end-to-end quality assuran...

26/08/2026

Scottish Rugby Expands Managed Coach Communications Partn...

Riedel Communications today announced the continued expansion of its managed coach communications partnership with Scottish Rugby Union. Now entering its third ...

26/08/2026

Zixi Demonstrates Hybrid Workflows and Proven Live Video...

Zixi brings Broadcaster V19 and showcases interoperable platform on Stand 5.A76 Zixi, a leader in live video delivery and workflow orchestration, will be exhib...

26/08/2026

Scripps Research professor Jeffery Kelly elected to the European Academy of Engineering

LA JOLLA, CA-Jeffery Kelly, the H. Lutcher Brown Professor of Chemistry at Scrip...

26/08/2026

Indie Developer Launches Orty, aWindows App That Helps Freelance VideoEditors Find Better Clients

Indie Developer Launches Orty, aWindows App That Helps Freelance VideoEditors Fi...