The World Bank is intensifying pressure on Kenya’s Communications Authority (CA) to significantly reduce mobile termination rates (MTRs), warning that current charges are stifling competition and denying consumers, especially low-income citizens, access to more affordable voice calls.
As of December 8, 2025, the global lender highlights that Kenya’s MTR of Ksh0.41 per minute, though reduced from Ksh0.58 in March 2024, remains “significantly above cost”. This is despite CA data suggesting the actual cost is merely Ksh0.06.
The World Bank argues that these elevated MTRs create a “club effect” that disproportionately benefits larger operators like Safaricom, which commands a 63.4 percent market share.
Smaller networks, such as Airtel and Telkom, are forced to pay higher interconnect fees because a larger proportion of their customers’ calls terminate on Safaricom’s network.
This dynamic hinders fair competition and innovation within the telecommunications sector.
Comparatively, Kenya’s pace of reform is slow. Tanzania is already on a trajectory towards sub-Ksh0.09 MTRs, while Uganda sharply cut its rates in 2024.
The current Kenyan rate is set to expire on February 28, 2026, presenting a crucial opportunity for further reductions.
For the bottom 40 percent of Kenyans, half of whom rely on basic phones and use voice services four times more than the internet, the stakes are particularly high, as cheaper wholesale rates are expected to translate into more affordable tariffs.
Safaricom has already seen a reduction in interconnect revenue as MTRs have fallen from Ksh2.21 since 2010, but further cuts are anticipated to intensify price competition and benefit smaller operators.
