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...

13/08/2026

LaLiga Renews Broadcast Agreements with ESPN and DSports in South America Through 2031/32

LaLiga has renewed broadcast agreements with ESPN and DSports covering Spanish-l...

13/08/2026

Rockstar Energy Open Builds Third Portland Show Around AI-Powered Vertical Feed, Remote Operators

Three days of skateboarding competitions, live music, and other programming will...

13/08/2026

IBC 2026: Matrox Video to Showcase IP and Software-Defined Technologies

Matrox Video will showcase its portfolio of IP and software-defined technologies at IBC2026 (Booth 7.B15, RAI Amsterdam, September 11-14). The portfolio includ...

13/08/2026

IBC 2026: SMPTE to Present Sessions, Workshops, and Networking Events

SMPTE will present expert-led sessions, professional workshops, and networking events at IBC2026. The organization will be located in the IBC2026 Owner Pavilion...

13/08/2026

IBC 2026: Clear-Com to Showcase Communications Solutions

Clear-Com will exhibit at IBC2026 (Stand 10.D29, September 11-14, Amsterdam), showcasing FreeSpeak Cell, Avalon IP Station, updates to Arcadia Central Station, ...

13/08/2026

Advanced Systems Group Appoints Eran Binyamin Zeitoun as Senior Technical Program Manager

Advanced Systems Group (ASG) has appointed Eran Binyamin Zeitoun as Senior Techn...

13/08/2026

2026 SVG Venues & Teams Summit Heats Up Kaseya Center in Miami

Miami HEAT, Florida Panthers, Orlando Magic, University of Miami join leading vendors for a day of gameday-production talk in South Florida The 2026 SVG Venues...

13/08/2026

MLB at Field of Dreams Returns as Netflix Joins the Effort, Leans Into Cinematic Look at Newly Permanent Ballpark

NBC Sports is producing the Twins-Phillies game alongside the streamer, which is...

13/08/2026

IBC 2026: Oracle to Showcase Cloud Media Workflows

Oracle Cloud Infrastructure (OCI) will exhibit at IBC2026 (Hall 5, Booth 5.A21, September 11-14, Amsterdam), demonstrating cloud-based workflows across low-late...

13/08/2026

IBC 2026: Dalet to Participate Accelerator Programme with AI Live Sports Workflow Demo

Dalet will participate in the IBC2026 Accelerator Media Innovation Programme, co...

13/08/2026

Cox Media Group Announces Local Broadcast Deals with Orlando Magic and Charlotte Hornets

Cox Media Group (CMG) has announced multi-year local broadcast rights agreements...

13/08/2026

Jnger Audio to Demonstrate Cloud-Based DTV+ Workflow at SET Expo 2026

J nger Audio will join Fraunhofer IIS and industry partners to showcase a cloud-based, DTV+-compliant workflow at SET Expo 2026 in S o Paulo, August 17-20. DTV+...

13/08/2026

IBC 2026: Olympic Broadcasting Services to Receive International Honour for Excellence

IBC has announced that Olympic Broadcasting Services (OBS) will receive the Inte...

13/08/2026

NESN Expands Red Sox Broadcast Distribution for Jimmy Fund Telethon

NESN has partnered with WSBK-TV38 to broadcast Boston Red Sox games on August 17 and 18 over the air, extending the reach of the 24th annual WEEI/NESN Jimmy Fun...

13/08/2026

LiveU and Panasonic LUMIX Launch Live Anywhere Mobile Production Workflow

LiveU and Panasonic LUMIX have announced the Live Anywhere workflow, demonstrated at NAB 2026 and InfoComm 2026 in collaboration with Social180Group. The work...

13/08/2026

IBC 2026: Chyron to Showcase Sports Workflow Solutions

Chyron will demonstrate its sports analysis, graphics, remote production, virtual production, and venue control solutions at IBC2026 (Booth 7.A23). This year...

13/08/2026

Ratings Roundup: Pro Football Hall of Fame Game Draws 7 Million During Quiet August for Sports

Ratings Roundup is a rundown of recent ratings news and is derived from press re...

13/08/2026

ESPN/ABC, NBC/Peacock, Prime Video Set National Slates for Year 2 of NBA Rights Deal

Season tips off Oct. 20 and runs through April 11; Christmas Day, NBA Cup, All-S...

13/08/2026

VAEMI announce the Synterra

Company preview bio-interactive' synthesizer VAEMI have announced the upcoming launch of a new standalone bio-interactive' generative synthesizer....

13/08/2026

Ravine DSP update Inter::State

Plug-in host gains new Slot Scenes feature Ravine DSP have recently updated their innovative plug-in host, kitting it out with a new feature that brings yet...

13/08/2026

Tubi Media Group Partners with Gracenote to Unlock Additional Value in Content Discovery and Programmatic CTV Advertising

New Agreement Aims to Leverage Gracenote Infrastructure to Create More Relevant ...

13/08/2026

CMG Expands Local Sports Offering With Two NBA Deals

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

Olympic Broadcasting Services to receive IBC2026 Internat...

IBC today announced that its most prestigious honour, the International Honour for Excellence (IHFE), will be presented to Olympic Broadcasting Services (OBS), ...

13/08/2026

Dalet Demonstrates the Future of AI-Orchestrated Live Spo...

Dalet, a leading technology and service provider for media-rich organizations, today announced its participation in the IBC2026 Accelerator Media Innovation Pro...

13/08/2026

dzjinius to showcase new dzjinius on-set application at I...

dzjinius, the all-in-one production management platform for the media and entertainment industry, will showcase its new application, dzjinius on-set , at IBC20...

13/08/2026

BCE Demonstrates Sovereign Cloud Media Workflows powered...

Broadcasting Center Europe (BCE), a leading European provider of media services, system integration and product development, will demonstrate an end-to-end sove...

13/08/2026

Clear-Com to Showcase Communications Solutions for Broadc...

Clear-Com is returning to IBC 2026, taking place September 11-14 in Amsterdam, Netherlands. At Stand 10.D29, Clear-Com will spotlight the award-winning FreeSpe...

13/08/2026

Leader to highlight advanced Test and Measurement solutio...

Test & measurement innovator, Leader Electronics of Europe, will showcase its comprehensive portfolio of Leader, PHABRIX and LeaderPhabrix test and measurement ...

13/08/2026

KRK Brings Advanced Wireless Control to Professional Monitoring With New V Series Five Studio MonitorsKRK Brings Advanced Wireless

KRK Brings Advanced Wireless Control to Professional Monitoring With New V Serie...

13/08/2026

Anthony Noack Captures Artist's Journey in Estonia with Blackmagic Design

Anthony Noack Captures Artist's Journey in Estonia with Blackmagic Design Brie Clayton August 12, 2026 0 Comments Solo filmmaker documents concept...

13/08/2026

ARRI Image Science makes its mobile debut in the HONOR Robot Phone

ARRI Image Science makes its mobile debut in the HONOR Robot Phone Brie Clayton August 12, 2026 0 Comments Hero image displays the HONOR Robot Phone, ...

13/08/2026

ASG Adds Eran Binyamin Zeitoun as Senior Technical Program Manager

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

Vinten To Feature Manual, Robotic Camera Support Offerings At IBC 2026

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

SMPTE Unveils IBC 2026 Plans

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

IP Showcase on the Water Announces Schedule for IBC 2026

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

Spectrum, Optimum Ink New Deals for News Carriage and Ads

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

IAB Tech Lab Updates Privacy Standards

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

Suitest Highlights New AI-Powered Device Testing and Qual...

Suitest's Test Automation Platform Simplifies Video Quality Assurance, Monitoring, and Device Certification Across the OTT Ecosystem At IBC2026, Suitest, a...

13/08/2026

Cinegy showcases powerful, agile, cost-effective media so...

Cinegy GmbH, the premier provider of software-defined television technology, will have its key software solutions ready to demonstrate at SET Expo 2026 (18 20...

13/08/2026

Scripps Research establishes endowed chair honoring Peter K. Vogt, influential pioneer in cancer research

Scripps Research has established the Peter K. Vogt Endowed Chair, a new faculty ...

13/08/2026

New research offers fresh insights for how to make better vaccines

LA JOLLA, CA-A vaccine's molecular structure plays a key role in determining how the immune system responds and prepares to protect the body from future exp...

13/08/2026

Venera Technologies Showcases AI-Powered Innovations Across its Media QC Platform at IBC 2026

Venera Technologies Showcases AI-Powered Innovations Across its Media QC Platfor...

13/08/2026

Surviving Fred and Rose West: Inside Cromwell Street for U and U&W

New U and U&W Documentary Features Kathleen Richards, One of the Last Surviving Witnesses to Fred and Rose West Kathleen is Reunited with Childhood Friend and ...

13/08/2026

Official trailer released for the return of Tea with Judi Dench Coming to Sky Arts on 31st August

Thursday 13 August 2026 Official trailer released for the return of Tea with Ju...

13/08/2026

Dalet Demonstrates the Future of AI-Orchestrated Live Sports Workflows at IBC2026 Accelerator Programme

Dalet, a leading technology and service provider for media-rich organizations, t...

13/08/2026

Vale MP praises Wenvoe's broadcast role and engineering expertise

Wenvoe serves over 1 million people across South Wales 13 August 2026, Winchester, UK - Vale of Glamorgan MP, Kanishka Narayan, has praised the engineering exp...

13/08/2026

Event Marks New Season with the RT Concert Orchestra

RT 's Miriam O'Callaghan welcomed a range of specially invited guests to the National Concert Hall last week for a unique event to mark a new season wit...