Who Owns Whom

The Telecommunications Industry in Kenya 2022

Carole Veitch | Kenya | 16 March 2022

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R 13 500.00(ZAR) estimated $ 851.84 (USD)*

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Report Coverage

This report focuses on the telecommunications industry in Kenya and includes information on the state and size of the industry, the major players, infrastructure development and technology rollouts, major developments and factors that influence the sector. There are profiles of 23 companies including major players such as Telkom Kenya, Safaricom and Airtel, South African companies in Kenya such as MTN and Vodacom, data communications services companies such as Jamii Telecommunications and underseas cable companies such as The East African Marines Systems.

The Telecommunications Industry in Kenya

The Kenyan telecommunications industry connected people and facilitated online learning, remote work, ecommerce and financial services during the pandemic. In response to the surge in demand for mobile voice, data and internet services, telecommunications companies are rolling out infrastructure countrywide. Kenya launched 5G trials in March 2021, becoming the second country in Africa to do so, after South Africa. Kenya is the world’s largest provider of mobile money services.

Infrastructure Development

The development of telecommunications network infrastructure was limited by operating constraints and supply chain disruptions linked to the pandemic, but new projects have been initiated since 2021 including a rural tower expansion project, the installation of 4G towers and the rollout of fibre infrastructure. The telecoms industry continues to increase coverage, focusing on bridging the digital gap between urban and rural areas.

Trends

Mobile phones are the main platform for voice and data connectivity. Despite the availability of relatively cheap smartphones, a large section of the population is unable to afford 3G- and 4G-enabled devices and still relies on 2G devices. Internet services are becoming more accessible, and there is strong demand for digital services and cashless payments for financial transactions. There is a shift from voice to data, and voice and data prices are coming down. Safaricom remains the dominant player with the lion’s share of the mobile subscription market, mobile broadband market and mobile money market.

Table of Contents

PAGE
1. INTRODUCTION 1
2. COUNTRY PROFILE 1
3. DESCRIPTION OF THE INDUSTRY 6
3.1. Industry Value Chain 9
3.2. Geographic Position 12
3.3. Size of the Industry 15
3.4. Key Success Factors and Pain Points 23
4. LOCAL 25
4.1. Key Trends 27
4.2. Notable Players 28
4.3. Corporate Actions 30
4.4. Regulations 32
4.5. Enterprise Development and Social Economic Development 35
5. AFRICA 36
6. INTERNATIONAL 40
7. INFLUENCING FACTORS 43
7.1. COVID -19 43
7.2. Economic Environment 45
7.3. Frequency Spectrum Management 47
7.4. Government Support 48
7.5. Infrastructure 50
7.6. Corruption 50
7.7. Cyber Security 50
7.8. Technology, Research and Development (R&D) and Innovation 51
7.9. Labour 52
7.10. Environmental Concerns 54
8. COMPETITIVE ENVIRONMENT 54
8.1. Competition 54
8.2. Barriers to Entry 55
9. SWOT ANALYSIS 56
10. OUTLOOK 57
11. INDUSTRY ASSOCIATIONS 58
12. REFERENCES 58
12.1. Publications 58
12.2. Websites 58
APPENDIX 1 60
Summary of Notable Indigenous and Foreign Players 60
COMPANY PROFILES 63
Airtel Networks Kenya Ltd 63
Dimension Data Solutions East Africa Ltd 65
DT One Fixed and Mobile Pte Ltd 67
East African Marines Systems Ltd (The) 69
Eaton Towers Ltd 71
Echotel International Kenya Ltd 73
Ericsson Kenya Ltd 75
FiberLink Ltd 76
Finserve Africa Ltd 77
Huawei Investment & Holding Co Ltd 79
Jamii Telecommunication Ltd 83
Liquid Intelligent Technologies Kenya Ltd 85
Mawingu Networks Ltd 87
MTN Business Kenya Ltd 89
NewTelco South Africa (Pty) Ltd 91
Poa Internet Kenya Ltd 93
Safaricom PLC 95
Sea Submarine Communications Ltd 98
Space Engineering Ltd 99
Telkom Kenya Ltd 101
Vodacom Group Ltd 105
Wananchi Group Kenya Ltd 109
ZTE (Kenya) Ltd 111