The Communications Authority of Kenya has ordered a reduction in mobile termination rates from 41 cents per minute to 30 cents over the next four years. The measure aims to foster price competition among telecom operators and could lead to more affordable call charges for millions of Kenyans. It follows a 2022 study showing current rates exceed the actual cost of service delivery.
The Communications Authority of Kenya (CA) has announced a phased reduction in mobile termination rates (MTR), the fee one telecom operator pays another to complete a call on its network. Rates will drop from the current 41 cents per minute to 30 cents over four years, aiming to sustain fair competition and investment in network infrastructure.
This follows a 2022 telecommunications network cost study that found prevailing termination rates exceeded the true cost of service provision. Currently, the retail price for a cross-network call stands at about Ksh2.20 per minute, comprising 41 cents for MTR, Ksh1.20 for network service costs, and 60 cents for taxes and operator margins.
However, telecom operators may not pass the full savings to consumers, potentially retaining portions as margins or restructuring charges through bundles or adjustments to on-net and off-net tariffs. The directive comes amid pressure from the World Bank, which urged lower rates to ensure affordable voice calls for users.
The change is expected to benefit Kenyans by promoting cheaper cross-network calls, though the exact impact will depend on how operators implement the reductions.