Mobile taxation in Kenya: Accelerating digital development

The GSMA released a new report that examines the mobile taxation framework in Kenya, identifies potential areas for reform which would, in turn, improve the overall business environment, and support the delivery of Kenya’s connectivity objectives which include universal broadband coverage. It adopts a holistic approach that reviews the economic and social impact of the mobile sector on Kenya’s economy as well as its financial contribution to the government. The report found that the mobile sector makes a significant economic and social contribution. Yet, the tax contribution of the mobile sector is high compared to other countries in Sub-Saharan Africa (SSA), which could limit the growth potential of the mobile sector in Kenya. Therefore, improvement in the affordability of mobile services is required to promote faster development of the market and increase mobile connectivity in Kenya alongside further investment to ensure full 4G coverage.