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 ...

01/06/2026

Dolby Sets the New Standard for Premium Entertainment at CES 2026

January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026 Throughout the week, Dolby brings to life the latest innovatio...

01/05/2026

NBCUniversal's Peacock to Be First Streamer to Integrate Dolby's Full Suite of Premium Picture and Sound Innovations

January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...

01/04/2026

DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION

January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION Douyin Users Can Now Create And Share Videos With Stun...

03/02/2026

Tagboard's New Partner Development Kit Turns Complex Third-Party Integrations into Instant Graphics

Tagboard, a modern, interactive graphics system for news, sports, and entertainm...

03/02/2026

SNS Launches New S3-Compatible Cloud Storage Service

Studio Network Solutions (SNS) announces the launch of Trio, a new S3-compatible cloud storage service fully integrated with EVO for media backup, archival, and...

03/02/2026

NEP Group Running at Full-Scale This Month in Support of Major International Events

50 Production Trucks at center of 160 U.S.-based productions...

03/02/2026

Nielsen Launches Co-Viewing Pilot Program to Further Enhance TV Measurement

Nielsen, which specializes in audience measurement, data, and media intelligence, announces that it is piloting a new methodology enhancement to more accurately...

03/02/2026

NBC Sports Relies on Appear X Platform for Winter Games

Appear's X Platform will be used by NBC Sports to deliver video compression, satellite modulation and transport stream aggregation for its production of the...

03/02/2026

Behind The Mic: NBC Sports Unveils Presentation Cast for Super Bowl LX as Part of Legendary February

Behind The Mic provides a roundup of recent news regarding on-air talent, includ...

03/02/2026

NHL Network to Take Fans Rinkside as NHL Players Return to Winter Olympic Games

NHL Network announces its comprehensive programming schedule for the upcoming Winter Olympic Games, underscoring the highly anticipated return of NHL players to...

03/02/2026

Canon Lenses Power NBC Coverage of Milano Cortina Winter Games

NBC Sports has chosen Canon to deliver 115 Canon UHD broadcast lenses for its production of the 2026 Winter Olympics and Paralympics. Canon will also send suppo...

03/02/2026

NBC Sports Selects Audio-Technica for Vital Winter Games Role

Audio-Technica equipment will be used by NBC Sports to deliver much of its audio capture requirements across all sporting venues for its production of the 2026 ...

03/02/2026

Cisco VXLAN Makes Olympic Debut for NBC Sports

NBC Sports will use Cisco to deliver AI networking technology for its all-IP production of the 2026 Winter Olympics and Paralympics, including the deployment of...

03/02/2026

Chyron PRIME CG Drives NBC Sports Winter Games Graphics

NBC Sports will utilize Chyron PRIME CG to produce live broadcast graphics to display names, athlete information, scores, statistics, leaderboards, headshots an...

03/02/2026

NBC Sports Relies on Grass Valley for Winter Games Signal Conversion, Routing, Orchestration

NBC Sports will utilize Grass Valley to deliver advanced signal conversion, rout...

03/02/2026

Planar Supplies LED Wall Technology for NBC Sports Winter Games Coverage

NBC Sports will utilize Planar to deliver leading-edge fine pixel pitch LED video wall technology for its production of the 2026 Winter Olympics and Paralympics...

03/02/2026

FOX Sports Wraps Run Airing Westminster Kennel Club Dog Show

Taking place in two venues, the 2026 production celebrates the 150th Anniversary of the Super Bowl of Dogs' When the Westminster Kennel Club Dog Show conc...

03/02/2026

ESPN To Broadcast 2026 NFL Pro Bowl Games Live From San Francisco's Convention Center

For the indoor production, NEP Specialty Capture has mounted a 100-ft. overhead ...

03/02/2026

Inside League One Volleyball: Mobile TV Group Drives Broadcasts via Onsite Support, Remotely From Mountain Media Center

MTVG Edge, the production-services supplier's software-based production solu...

03/02/2026

Inside League One Volleyball: CMO Raquel Braun on Partnering With Omaha Productions, Mobile TV Group

In the league's second year, new partnerships enhance broadcast quality for ...

03/02/2026

NBC Sports Taps Ross Video's Rocket Surgery for Virtual and AR at 2026 Winter Games

Rocket Surgery will showcase the combined creative strength of Ross Video, with ...

03/02/2026

Sony Supplies 100+ Cameras, 500 Monitors, and More for NBC's Winter Olympics Coverage

NBC Sports will utilize Sony Electronics to deliver imaging, monitoring, and tec...

03/02/2026

NBC Sports Selects SMT to Handle Results, Timing, and Production Data Services for Milano-Cortina 2026

SMT will provide TVI (broadcast television interface) support services for figur...

03/02/2026

Spotify Celebrates the 2026 Best New Artist Nominees During a Star-Studded Party in LA

Spotify's annual Best New Artist celebration returned to Los Angeles last ni...

03/02/2026

The smash-hit series The Hospital: In the Deep End returns to shine a spotlight on the real-life heroes of our healthcare system

The smash-hit series The Hospital: In the Deep End returns to shine a spotlight ...

03/02/2026

Introducing: FoMa Antares

FoMa Antares: Redefining Camera Stabilization for Modern ProductionsIn high-end broadcast and cinematic environments, precision, reliability, and flexibility ar...

03/02/2026

Viper Shield Flight Tests Accelerates Delivery with New Digital Electronic Warfare Capability

Viper Shield's robust phase of flight-testing production representative hard...

03/02/2026

L3Harris: A Strategic Partner for National Vigilance and Regional Peace

Countries throughout the Indo-Pacific have made the ability to defend their people and sovereign borders a top priority, but no single nation can monitor every ...

03/02/2026

L3Harris Achieves Record-Breaking Fuzing Delivery Milestone

U.S. Marine loads a round in an 81 mm mortar system during an exercise. (Credit: U.S. Marines)...

03/02/2026

Cobalt Targets Need for Multiple Video Feeds with openGear 9905MPx Multi-Channel Processor

9905MPx Card features unprecedented level of density with four independent signa...

03/02/2026

Cobalt Wins Three 2021 NAB Show Product of the Year Awards

Champaign, IL - November 15, 2021 - Cobalt Digital, announced today that three of its products have received 2021 NAB Show Product of the Year Awards. Cobalt, ...

03/02/2026

LOG4J Does Not Affect Cobalt Digital Products

Cobalt is pleased to confirm that Log4j vulnerability does NOT affect ANY Cobalt products including the HPF-9000 frame. Given the recent concerns regarding wi...

03/02/2026

Cobalt Digital's Launch of +UDX-Dante-1616 Introduces First License-based 12G-SDI Bridge to Dante Audio

Software-based embedding and de-embedding solution will be highlighted at NAB 20...

03/02/2026

Cobalt to Show New Line-up of EO/OE 12G Mini-Convertor BBG Boxes at NAB

Series developed to fill an industry need. Champaign, IL April 13, 2022 Cobalt Digital will introduce a new series of BlueBox Group (BBG) EO/OE 12G mini...

03/02/2026

Cobalt Takes Home Four Awards from NAB 2022

Company receives Best in Shows from Next TV and TVB Europe, and two Product of the Year awards from NAB Champaign, IL - May 6, 2022 - Cobalt Digital Inc. head...

03/02/2026

Cobalt to Participate in Several Events in and Around IBC 2022

IBC Stand 10.B44Journalists: Click to visit Cobalt Dr. Ciro Noronha, CTO, tapped as a panelist and speaker by many - and then there's the party! Amsterda...

03/02/2026

Company Announces Changes in Sales and Engineering Team Just in Time for IBC

IBC Stand 10.B44Journalists: Click to visit Cobalt Growth Drives Cobalt Digital to Promote Dr. Ciro Noronha to CTO, and Appoint Anthony Tan as Director of Sale...

03/02/2026

Cobalt Targets Top Trends at NAB NY with Solutions that Support IP, 4K ST 2110, HDR, RIST, Dante and Internet Security.

IBC Stand 10.B44Journalists: Click to visit Cobalt Dr. Ciro Noronha, CTO, tappe...

03/02/2026

Cobalt is Bringing an Award-Winning Portfolio of New Products to CABSAT 2023

Manufacturer plans also include solutions that provide a path to the cloud and redundancy updatesCABSAT Stand S1-I42Journalists: Click to visit Cobalt Dubai - ...

03/02/2026

Cobalt Announces Presence at ANGA COM 2023

Award-Winning Product Portfolio is Being Presented on Smart Video Group Stand, and Company's Berend Blokzijl is Scheduled to Share RIST Insight on Innovatio...

03/02/2026

COBALT Announces an IBC Line-up that Features IP Products and Extends 12-G Support Options

NEW Location IBC Stand 10.F42 Same Hall, NEW StandJournalists: Click to visi...

03/02/2026

TVBEurope: Understanding the RIST series of Specifications

TVBEurope spoke with our very own Dr. Ciro Noronha about RIST and more.Reliable Internet Stream Transport (RIST) is growing in popularity for contribution and d...

03/02/2026

IBC 2023: COBALT has 12G Covered with Multiple openGEAR Cards and New Form Factor Solutions

NEW Location IBC Stand 10.F42 Same Hall, NEW StandJournalists: Click to visi...

03/02/2026

Catch the COBALT WAVE of New Routers and Control Panels at IBC

NEW Location IBC Stand 10.F42 Same Hall, NEW StandJournalists: Click to visit CobaltCatch Cobalt's Blue WAVE of Innovation in a New LocationHighlights t...

03/02/2026

COBALT Scores Best of Show Awards at IBC 2023

Cobalt Digital Scores Best of Show Awards at IBC 2023 from TVB Europe and TV Technology Amsterdam, 2 October 2023 - Cobalt Digital has announced that it has w...

03/02/2026

COBALT DIGITAL at NAB New York 2023 Booth 1126

NAB NY Booth: 1126Cobalt Digital to Present New PACIFIC Ultra-Low Latency 4K HEVC Encoder / Decoder Platform at NAB NY 2023Cobalt's NAB NY Plans Have Live P...

03/02/2026

COBALT Announces Inter BEE Product Line-Up

Cobalt's Inter BEE Line-up Targets 4K 2110 Processing with INDIGO Option and Offers High-Density Routing Solutions with New WAVE SeriesNew Mini Converters a...

03/02/2026

NAB 2024 Preview - Booth SU4027

Cobalt Digital's NAB 2024 Plans Include a Simplified Path to ATSC 3.0 Other Highlights include Enhanced IP Multiviewers, Expanded Router and Control Panel ...