Kenya’s telecom market is undergoing a significant transformation, driven by increasing competition, improved international connectivity, and rapid developments in the mobile sector.
With the country now directly connected to multiple submarine cables, internet access has become more affordable for a larger proportion of the population.
However, challenges remain, particularly in infrastructure development and spectrum allocation, which continue to hinder the country’s digital expansion.
Connectivity Growth and Challenges
Kenya’s strategic location has made it a key player in regional telecom development. The city of Mombasa serves as the landing point for the newly completed East and West Africa terrestrial network by Liquid Intelligent Technologies (LIT).
Meanwhile, Nairobi acts as a crucial connectivity hub for Ethiopia, the Arabian states, and the Far East.
While these advancements have significantly lowered the cost of internet access, millions of Kenyans still lack reliable internet services.
The infrastructure remains inadequate, with many rural areas suffering from slow and expensive internet access. This digital divide poses a serious challenge to the government’s digital transformation goals.
Government Initiatives to Expand Telecom Infrastructure
To bridge this gap, the Kenyan government has committed to investing in a 100,000km fiber backbone, expected to be completed by 2026. This initiative aims to provide broadband access to government offices, schools, and healthcare facilities. However, more needs to be done to position Kenya as a regional ICT hub.
The entry of Starlink into the Kenyan market in early 2023 brought hopes of improved satellite broadband services for remote areas. However, the high cost of hardware and subscription fees has made it less viable for many citizens.
The Struggle of Telkom Kenya in a Competitive Market
Telkom Kenya, the country’s incumbent fixed-line operator, has faced difficulties in gaining traction in the evolving telecom landscape. In 2018, the company undertook a reorganization, including a sale and leaseback agreement of its mobile tower portfolio. A further restructuring in 2020 aimed to position Telkom Kenya for the digital era and improve its market competitiveness.
Despite these efforts, Telkom Kenya has struggled to compete against industry giants such as Safaricom and Airtel. The Kenyan government is currently considering selling Jamhuri Holdings’ 60% stake in Telkom Kenya to Infrastructure Corporation of Africa (ICA), a move that could reshape the company’s future.
Key Developments in the Kenyan Telecom Industry
The telecom industry in Kenya continues to experience rapid changes. Some of the most notable developments include:
- Safaricom opens East Africa’s first smartphone assembly plant with an annual production capacity of three million units.
- Regulator rejects proposals to lower national roaming fees, stating that pricing should be determined through commercial negotiations.
- Treasury recommends the sale of Telkom Kenya’s 60% stake in Jamhuri Holdings to Infrastructure Corporation of Africa (ICA).
- Liquid Intelligent Technologies launches a new cable route between Nairobi and Ethiopia, improving Ethiopia’s access to data centers and cloud services.
- Safaricom surpasses 500,000 5G subscribers, marking a significant milestone in the adoption of next-generation networks.
- Regulator sets a new mobile termination rate, effective from March 2024, aimed at regulating call charges among mobile operators.
The Future of Kenya’s Telecom Industry
Kenya is poised for further telecom expansion, with increased investments in fiber optic networks, 5G adoption, and smartphone manufacturing. The government’s push for digital transformation, coupled with the entrance of global players like Starlink, signals a promising future for the industry. However, challenges such as high service costs, spectrum limitations, and infrastructure deficits must be addressed to ensure inclusive digital growth.
Major Players in Kenya’s Telecom Sector
Several companies are shaping Kenya’s telecom landscape, including:
- Telkom Kenya
- Safaricom
- Bharti Airtel
- MTN
- Liquid Intelligent Technologies
- Jamii Telecom
- Wananchi Group
- Access Kenya (Dimension Data)
- Mobile Pay (Tangaza Pesa)
- Zioncell Kenya
- Finserve Africa (Equitel)
- Kenya Data Networks (KDN)
- SimbaNet
- Internet Solutions Kenya
- Gilat Satellite Networks
- Afsat Communications
- Inmarsat
- Indigo Telecom (Thuraya)
- Nation TV (NTV)
Kenya’s telecom sector continues to evolve with groundbreaking innovations and expanding connectivity.
While affordability and accessibility remain key challenges, ongoing investments in infrastructure and technology promise a more digitally inclusive future for the country.
