The Communications Authority of Kenya (CA) has implemented a significant reduction in mobile termination rates (MTRs), the fees operators charge each other for connecting calls across networks. The new rate, effective from April 1, 2026, is set at KSh 0.12 per minute, a 40% cut from the previous rate of KSh 0.20. This regulatory move is designed to lower the cost of communication for consumers but directly pressures the voice revenue of major telecom companies like Safaricom, Airtel Kenya, and Telkom Kenya.
Industry analysts confirm that voice calls, once the primary revenue driver, now contribute a diminishing share as data and mobile money services grow. The CA's decision accelerates this shift, compelling operators to aggressively diversify. Safaricom, for instance, is increasingly reliant on its M-Pesa financial service and data bundles, while Airtel emphasizes its expanding mobile money and broadband offerings.
The regulator stated the cut aligns with its mandate to promote affordability and competition. However, telecom executives warn that the sharp reduction could impact network investment and sustainability, especially for smaller players. The move comes amid a broader industry trend where traditional voice revenue is being eclipsed by digital services across Africa.
