Kenya Telecom Market Size (2024 - 2029)

Kenya Telecom Market Analysis

The Kenya Telecom Market size is estimated at USD 3.79 billion in 2024, and is expected to reach USD 4.23 billion by 2029, growing at a CAGR of 2.24% during the forecast period (2024-2029).

• Kenya's telecommunications sector is propelled by the increasing demand for mobile voice, data, and internet services. This increase is primarily fueled by a growing urban population and the widespread adoption of mobile phones that support 3G, 4G, and even 5G services in Kenya. Moreover, the country is a pioneer in money with services such as M-Pesa, which allows the market players to invest in innovation and growth, such as expanding financial inclusion and integrating mobile money with other services.
• Increased investments in 4G infrastructure have bolstered service quality and expanded its coverage. The rollout of 5G is planned to revolutionize connectivity, enabling a host of new applications, notably in the realm of IoT. In July 2023, Safaricom, a prominent Kenyan telecommunications company, partnered with AST SpaceMobile. Their collaboration aims to introduce a satellite internet service. Leveraging AST SpaceMobile's technology, this service will enhance broadband offerings, including Wi-Fi, cellular networks, and fiber optic cables, particularly targeting remote and rural areas.
• The high cost of deploying and maintaining telecom infrastructure, especially in remote and rural areas, is a barrier to market growth. The cost involved in laying fiber optic cables, setting up mobile towers, and acquiring spectrum licenses limits small players from expanding their networks and services.
• Post-COVID-19, companies experienced business transformation. Companies and individuals made investments in digital tools and services, including cloud computing, cybersecurity solutions, and e-commerce platforms. The government and regulatory bodies introduced supportive services for better connectivity, driving market growth.
• M-Pesa, the mobile money service, has grown significantly, catering to over 51 million customers in seven African nations. Notably, in partnership with Vodafone's Kenyan affiliate, Safaricom, M-Pesa expanded its mobile money services to Ethiopia, the continent's second most populous nation. Additionally, merchant payments and e-commerce activities are emerging as key drivers of this growth. As Vodaphone's clients increasingly embrace digital platforms, the companies are committed to offering them a seamless ecosystem for digital transactions, accessible through USSD or the M-Pesa Super App.

Kenya Telecom Industry Segmentation

Telecom or telecommunication is the long-range transmission of information by electromagnetic means. The telecom market includes in-depth trend analysis of connectivity, such as fixed networks, mobile networks, and telecom towers. 

The Kenyan telecom market is segmented by services (voice services (wired and wireless), data and messaging services, OTT, and PayTV services). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.