Communications Authority of Kenya Set for Fresh Review of Mobile Call Rates in 2026

Communications Authority of Kenya Set for Fresh Review of Mobile Call Rates in 2026

Kenya’s mobile telecommunications sector is bracing for a renewed regulatory battle after the Communications Authority of Kenya (CA) confirmed that the current mobile termination rate (MTR) framework will expire in early 2026, forcing a fresh review of interconnection charges.

The move is expected to reopen long-running disputes between the regulator and major mobile operators over voice call pricing and competition, particularly between market leader Safaricom and its smaller rivals, Airtel and Telkom.

Mobile termination rates play a critical role in determining the cost of voice calls across different networks. When a customer on one mobile network places a call to a user on another network, the originating operator is required to pay a termination fee to the receiving network. These costs are ultimately reflected in retail call prices.

Industry analysts argue that higher MTRs disproportionately affect smaller operators by increasing their operating costs, limiting their ability to compete on pricing and reinforcing the dominance of larger players with extensive on-network traffic.

Current rates set to expire in 2026

According to a report by Business Daily, the CA introduced the current MTR framework on March 1, 2024, with the regulations scheduled to lapse on February 28, 2026.

Under the existing rules, the regulator capped both mobile and fixed termination rates at KSh 0.41 per minute, down from the previous rate of KSh 0.58 per minute. The reduction was implemented as part of a broader effort to encourage competition and lower the cost of voice services for consumers.

Once the framework expires, the CA will be required to conduct a fresh review, with the possibility of further reductions that could place downward pressure on retail call charges across the market.

Safaricom opposed deeper cuts

The most recent MTR review triggered a prolonged standoff between the regulator and Safaricom, Kenya’s largest mobile operator by a significant margin. While Airtel and Telkom backed deeper cuts to the termination rate, Safaricom strongly opposed the proposal.

The regulator had initially planned to slash the termination fee to as low as KSh 0.12 per minute beginning in January 2022, arguing that a sharp reduction would stimulate competition and make voice services more affordable.

Safaricom, however, warned that such a drastic cut would lead to substantial revenue losses and potentially undermine network investment. Following sustained objections, the CA opted for a more gradual reduction, settling on the current KSh 0.41 per minute rate.

Market dominance remains pronounced

Latest data from the Communications Authority underscores the imbalance that continues to shape Kenya’s voice market.

For the three months ending September, the sector recorded a total of 29.9 billion voice minutes. Safaricom accounted for 18.13 billion of those minutes, representing 61.19 per cent of all voice traffic.

Despite its dominance, only 1.43 billion minutes — around 7.8 per cent of Safaricom’s total traffic — were off-network calls, highlighting the company’s extensive on-net customer base.

Airtel handled approximately 11.5 billion voice minutes during the period, with 3.3 billion minutes, or 29.3 per cent, terminating on rival networks. Telkom, which has a much smaller footprint, recorded just 84.8 million minutes, although nearly half of its calls were made to users on other networks.

Another showdown looming

With the current MTR regime set to end in 2026, industry insiders expect another intense policy debate as the regulator weighs the competing priorities of affordability, competition and operator sustainability.

Any decision by the CA to push for further reductions is likely to be welcomed by smaller operators but resisted by Safaricom, setting the stage for yet another high-stakes confrontation over the future of Kenya’s voice market.

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Communications Authority of Kenya Set for Fresh Review of Mobile Call Rates in 2026

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