Kenya Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Last updated: 27 Nov 2023 Update History

Report Status: Current

Report Pages: 238

Analyst: Henry Lancaster

Contact BuddeComm

Purchase this Report

Summary
Table Of Contents

Kenya’s telecom sector preps for sales and an IPPO

Kenya’s telecom market continues to undergo considerable changes in the wake of increased competition, improved international connectivity, and rapid developments in the mobile market. The country is directly connected to a number of submarine cables. Mombasa is the landing point for LIT’s newly completed East and West Africa terrestrial network, while Nairobi country serves as a key junction for onward connectivity to Ethiopia, the Arabian states, and the Far East. While the additional internet capacity has meant that the cost of internet access has fallen dramatically in recent years, allowing services to be affordable to a far greater proportion of the population, the telecom infrastructure remains woefully inadequate. Many millions of people lack any internet access, and what services are available are comparatively slow and expensive.

This poor situation poses significant challenges for the government’s digital transformation ambitions. There has been insufficient spectrum allocation to enable the MNOs to improve mobile network capacity, and while the launch of Starlink’s satellite broadband service in early 2023 may signify some relief for unserved people in rural areas, the high cost of hardware and access makes it unviable for many.

The government is channelling investment in a 100,000km fibre backbone, which is scheduled to be complete by the end of 2026. While thousands of governments offices, schools and health centres will access broadband as a result, much more work needs to be done if Kenya is to realise its potential as a regional ICT hub.

The incumbent fixed-line telco Telkom Kenya has struggled to make headway in this market, prompting a reorganisation in 2018 which included a sale and leaseback arrangement with its mobile tower portfolio. A further restructuring exercise in late 2020 was aimed at repositioning the company for the digital age, and to improve its ability to compete in the market.

Key developments:

Safaricom opens east Africa’s first smartphone assembly plant, with a capacity of three million units annually.
Regulator rejects calls to impose reduction in national roaming fees, claiming that fees should be set by commercial negotiation.
Treasury recommends sale of Jamhuri Holdings’ 60% stake in Telkom Kenya to Infrastructure Corporation of Africa (ICA).
Liquid Intelligent Technologies opens a new cable route between Nairobi and Ethiopia, providing Ethiopia with access to data centres and cloud services in Nairobi.
Safaricom claiming to have signed up over 500,000 5G customers.
Regulator sets mobile termination rate for two years from March 2024.
Report update includes the regulator’s market data to June 2023, operator data to Q3 2023, updated Telecom Maturity Index charts and analyses, recent market developments.

Companies mentioned in this report:

Telkom Kenya, Jamii Telecom, Access Kenya (Dimension Data), Kenya Power and Lighting Company (KPLC), Kenya Pipeline Corporation (KPC), Wananchi, Safaricom, Bharti Airtel, MTN, Liquid Intelligent Technologies (Liquid Telecom), Essar Telkom Kenya, Mobile Pay (Tangaza Pesa), Zioncell Kenya, Finserve Africa (Equitel), Kenya Data Networks (KDN), Jamii Telecom, SimbaNet, Africa Online, Access Kenya (Dimension Data), Wananchi Online, Swift Global, Internet Solutions Kenya (InterConnect), Gilat Satellite Networks, Afsat Communications, Inmarsat, Indigo Telecom (Thuraya), Nation TV (NTV)

Key statistics
Regional Africa Market Comparison

Market characteristics
Market Leaders
Market Challengers
Market Emergents
TMI vs GDP
Mobile and mobile broadband penetration
Fixed versus mobile broadband penetration

Country overview
Telecommunications market

Market analysis

Regulatory environment

Regulatory authority
Fixed-line developments

Kenya Communications Act 1998
Revised Telecommunications Market Structure 2004
Kenya Communications Amendment Act 2009
Licence fees
Universal Service Fund (USF)
Interconnection
Number Portability (NP)
Spectrum auctions
Foreign ownership
Telecom sector liberalisation
Privatisation of Telkom
Regional telecom licences
Second national operator (SNO) licensing
International gateway licences
Unified licensing regime

Mobile network developments

Roaming
Mobile Termination Rate (MTR)
International gateways
Spectrum
Mobile Number Portability (MNP)
Network sharing
Quality of Service (QoS)
SIM card registration
Taxes
Tariff regulation

Mobile market

Mobile statistics
Mobile infrastructure

5G
4G (LTE)
3G
GSM

Mobile data

Mobile broadband

Other infrastructure developments

Major mobile operators

Mobile market share by operator
Safaricom
Airtel Kenya
Essar Telecom Kenya
Telkom Kenya
Mobile Virtual Network Operators (MVNOs)

Mobile content and applications

Mobile money transfer, m-banking
M-medicine

Fixed-line broadband market

Introduction and statistical overview

Internet backbone infrastructure
Broadband statistics
Public internet access locations

Digital Subscriber Line (DSL) networks

Internet Exchange Points (IXP)
Kenya Network Information Centre (KENIC)
National broadband strategy
ISP market

Fibre-to-the-Premises (FttP) networks
Other fixed broadband services

Wireless broadband

Digital economy

E-learning

National research and education network (NREN)

E-commerce
E-government
E-agriculture

Fixed network operators

Telkom Kenya

Wireless Local Loop (WLL)

Liquid Telecom Kenya (KDN)
Jamii Telecom
Access Kenya

Telecommunications infrastructure

Overview of the national telecom network
National Optic Fibre Backbone Infrastructure (NOFBI)

Liquid Intelligent Technologies
Kenya Power and Lighting Company (KPLC)
Kenya Pipeline Corporation (KPC)
Safaricom
MTN
Fibre infrastructure sharing
Data centres
Smart infrastructure

International infrastructure

Satellite
Terrestrial fibre
Submarine fibre

Appendix – Historic data
Glossary of abbreviations
Related reports

List of Tables

Table 1 – Top Level Country Statistics and Telco Authorities – Kenya – 2023 (e)
Table 2 – Telecom revenue and investment by service providers ($ million) – 2021 – 2022
Table 3 – Mobile services revenue and investments (KES billion) – 2012 – 2022
Table 4 – Annual mobile number portings – 2013 – 2021
Table 5 – Change in the number of feature and smart mobile devices – 2012 – 2023
Table 6 – Change in the share of mobile voice traffic share by operator – 2014 – 2023
Table 7 – Growth in the number of mobile subscribers and penetration rate in Kenya – 2012 – 2027
Table 8 – Change in the number of prepaid and contract mobile subscribers (million) – 2012 – 2023
Table 9 – Change in SMS traffic by quarter – 2012 – 2023
Table 10 – Change in the volume of SMS domestic annual traffic – 2012 – 2023
Table 11 – Change in the number of mobile data subscribers – 2012 – 2023
Table 12 – Change in the number of mobile data/internet subscribers by provider (million) – 2013 – 2023
Table 13 – Change in the share of mobile data subscribers by provider – 2014 – 2023
Table 14 – Growth in the number of active mobile broadband subscribers – 2012 – 2027
Table 15 – Change in the number of mobile data subscribers by platform – 2020 – 2023
Table 17 – Increase in Safaricom’s revenue (KES billion) – 2012 – 2024
Table 18 – Change in Safaricom’s revenue by sector (KES billion) – 2012 – 2024
Table 19 – Change in the proportion of Safaricom’s mobile service revenue by sector – 2012 – 2024
Table 20 – Growth in the number of Safaricom’s mobile subscribers (regulator data) – 2012 – 2023
Table 21 – Growth in the number of Safaricom’s mobile subscribers (company data) – 2013 – 2023
Table 22 – Safaricom’s economic contribution (KES million) – 2016 – 2021
Table 23 – Change in Safaricom’s annualised mobile ARPU by platform (KES / month) – 2012 – 2024
Table 26 – Change in the number of Telkom Kenya’s mobile subscribers – 2012 – 2023
Table 27 – Growth in the number of Finserve’s/Equitel’s mobile subscribers – 2015 – 2023
Table 28 – Mobile Pay mobile subscribers – 2017 – 2019
Table 29 – Growth in the m-money penetration rate – 2012 – 2023
Table 30 – Change in the number of m-money subscribers and agents – 2012 – 2023
Table 31 – Mobile money subscribers by operator (million) – 2014 – 2023
Table 32 – Growth in the number of m-money transactions and value – 2012 – 2023
Table 33 – Growth in Safaricom’s M-PESA revenue – 2012 – 2024
Table 34 – Growth in the number of Safaricom’s active M-PESA customers – 2012 – 2023
Table 35 – Change in Safaricom’s M-PESA transactions value by type (KES billion) – 2012 – 2024
Table 36 – Growth in the number of total internet subscriptions – 2012 – 2023
Table 37 – Growth in the number of wireless internet subscriptions by access technology – 2012 – 2023
Table 38 – Change in the number of fixed-line broadband subscriptions by access technology – 2012 – 2023
Table 39 – Change in the number of fixed-line broadband subscriptions and penetration – 2012 – 2027
Table 40 – Growth in the number of total broadband subscriptions – 2014 – 2021
Table 41 – Decline in the number of DSL subscribers – 2012 – 2023
Table 42 – Market share of fixed broadband subscribers by operator – 2018 – 2023
Table 43 – Increase in the number of Safaricom’s fibre broadband subscribers – 2015 – 2023
Table 44 – Growth in the number of Safaricom’s fibre broadband premises covered – 2016 – 2023
Table 45 – Growth in the number of fibre broadband subscribers – 2012 – 2023
Table 46 – Change in the number of cable broadband subscribers – 2016 – 2023
Table 47 – Fixed-wireless subscriptions in Kenya – 2012 – 2023
Table 48 – Decline in the number of fixed wired lines – 2018 – 2023
Table 49 – Change in the number of fixed lines in service and teledensity – 2012 – 2027
Table 50 – Satellite bandwidth capacity– 2013 – 2023
Table 51 – Growth in international internet bandwidth – 2012 – 2023
Table 52 – International bandwidth capacity by platform (Mb/s) – 2013 – 2023
Table 53 – Used international bandwidth (Mb/s) – 2013 – 2023
Table 54 – Historic - Mobile subscribers and penetration rate in Kenya – 1999 – 2011
Table 55 – Historic - Fixed lines in service and teledensity in Kenya – 1999 – 2011
Table 56 – Historic - Internet users and penetration rate – 1999 – 2011
Table 57 – Historic - International internet bandwidth – 2000 – 2011
Table 58 – Historic - Essar Telecom subscribers – 2010 – 2014
Table 59 – Historic - Telkom Kenya revenue – 2010 – 2014
Table 60 – Historic - Internet services revenue and investments (KES billion) – 2009 – 2015
Table 61 – Historic - Telkom fixed-line subscribers – 2008 – 2016
Table 62 – Historic - MMS traffic – 2012 – 2015
Table 63 – Historic - ICT sector revenue in Kenya – 2012 – 2016
Table 64 – Historic - Mobile services revenue and investments (KES billion) – 2008 – 2011
Table 65 – Historic - 2G Mobile base stations by operator – 2012 – 2017
Table 66 – Historic - 3G Mobile base stations by operator – 2012 – 2017
Table 67 – Historic - Change in the volume of SMS domestic annual traffic – 2008 – 2011
Table 68 – Historic – Telecom sector revenue in Kenya – 2007 – 2011

List of Charts

Chart 1 – Africa Telecoms Maturity Index – Market Leaders
Chart 2 – Africa – Market Leaders global ranking
Chart 3 – Africa Telecoms Maturity Index – Market Challengers
Chart 4 – Africa – Market Challengers global ranking
Chart 5 – Africa Telecoms Maturity Index – Market Emergents
Chart 6 – Africa – Market Emergents global ranking
Chart 7 – Africa – Telecoms Maturity Index vs GDP per capita
Chart 8 – Africa – Mobile subscriber penetration vs mobile broadband penetration
Chart 9 – Africa – Fixed and mobile broadband penetration
Chart 10 – Mobile services revenue and investments (KES billion) – 2012 – 2022
Chart 11 – Change in the share of mobile voice traffic share by operator (Q4) – 2016 – 2023
Chart 12 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Chart 13 – Change in the number of prepaid and contract mobile subscribers – 2012– 2023
Chart 14 – Change in SMS traffic by quarter – 2012 – 2023
Chart 15 – Change in the volume of SMS domestic annual traffic – 2012 – 2023
Chart 16 – Change in the number of mobile data subscribers – 2012 – 2023
Chart 17 – Change in the number of mobile data/internet subscribers by provider – 2013 – 2023
Chart 18 – Change in the share of mobile data subscribers by provider – 2014 – 2023
Chart 19 – Growth in the number of active mobile broadband subscribers – 2012 – 2027
Chart 22 – Change in Safaricom’s revenue by sector – 2012 – 2024
Chart 23 – Change in the proportion of Safaricom’s service revenue by sector – 2012 – 2024
Chart 24 – Growth in the number of Safaricom’s mobile subscribers – 2012 – 2023
Chart 25 – Change in Safaricom’s mobile ARPU by platform – 2012 – 2024
Chart 26 – Growth in the number of Safaricom’s base stations by technology – 2011 – 2023
Chart 27 – Growth in the number of Airtel Kenya’s mobile subscribers – 2012 – 2023
Chart 28 – Change in the number of Telkom Kenya’s mobile subscribers – 2012 – 2023
Chart 29 – Growth in the number of Finserve’s/ Equitel’s mobile subscribers – 2015 – 2023
Chart 30 – Change in the number of m-money subscribers and agents – 2012 – 2023
Chart 32 – Growth in the number of m-money transactions and value – 2012 – 2023
Chart 33 – Growth in Safaricom’s M-PESA revenue – 2012 – 2024
Chart 34 – Growth in the number of Safaricom’s active M-PESA customers – 2012 – 2023
Chart 35 – Change in Safaricom’s M-PESA transactions value by type – 2012 – 2024
Chart 36 – Growth in the number of total internet subscriptions – 2012 – 2023
Chart 37 – Change in the number of fixed-line broadband subscriptions by access technology – 2012 – 2023
Chart 38 – Change in the number of fixed-line broadband subscriptions and penetration – 2012 – 2027
Chart 39 – Growth in the number of broadband subscriptions – 2014 – 2021
Chart 40 – Decline in the number of DSL subscribers – 2012 – 2023
Chart 41 – Growth in the number of Safaricom’s fibre broadband premises covered – 2016 – 2023
Chart 42 – Growth in the number of fibre broadband subscribers – 2012 – 2023
Chart 43 – Change in the number of cable broadband subscribers – 2016 – 2023
Chart 44 – Change in the number of fixed lines in service and teledensity – 2012 – 2027

List of Exhibits

Exhibit 1 – Map of Telecom Maturity Index global ranking among countries in Africa
Exhibit 2 – Generalised Market Characteristics by Market Segment
Exhibit 3 – Africa – Market Leaders and market developments
Exhibit 4 – Africa – Market Challengers and market developments
Exhibit 5 – Africa – Market Emergents and market developments
Exhibit 6 – 2Africa landing stations

Related Reports

Purchase this Report

Contact BuddeComm

Share this Report

TMT Intelligence

A platform to scale your intelligence tasks

Monitor critical insights with our AI-powered Market Intelligence Platform gathering and analyzing intelligence in real time. With AI trained to spot emerging trends and detect new strategic opportunities, our clients use TMT Intelligence to accelerate their growth.

If you want to know more about it, please see:

TMT Intelligence Platform

Research Methodology

BuddeComm's strategic business reports contain a combination of both primary and secondary research statistics, analyses written by our senior analysts supported by a network of experts, industry contacts and researchers from around the world as well as our own scenario forecasts.

For more details, please see:

Research Methodology

More than 4,000 customers from 140 countries utilise BuddeComm Research

Are you interested in BuddeComm's Custom Research Service?

Hot Topics

News & Views

Have the latest telecommunications industry news delivered to your inbox by subscribing to BuddeComm's weekly newsletter.

Unsubscribe

Kenya Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Purchase this Report

Kenya’s telecom sector preps for sales and an IPPO

Key developments:

Companies mentioned in this report:

Key statistics

Regional Africa Market Comparison

Country overview

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Digital economy

Fixed network operators

Telecommunications infrastructure

Appendix – Historic data

Glossary of abbreviations

Related reports

Purchase this Report

Share this Report

TMT Intelligence

A platform to scale your intelligence tasks

Research Methodology

Hot Topics

News & Views