Mobile call rates to drop by up to Kes 0.30 per minute from March 1, 2029 – CA

The Communications Authority of Kenya (CA) has announced a four-year, phased reduction of Mobile Termination Rates (MTRs), which will see the cost of cross-network calls drop to Kes 0.30 per minute by March 1, 2029, or three years.

CA said Friday that the move aims to reduce the financial burden on consumers by lowering the fees operators charge each other to connect calls across different networks, facilitating cheaper, more competitive, and more affordable voice services.

It follows a 2022 study, the Telecommunications Network Cost Study by the regulator, to determine the efficient cost of delivering mobile and fixed call termination services, which found that the prevailing mobile termination rates and fixed termination rates were significantly higher than the underlying network costs and recommended a phased glide path to progressively align the rates with cost-based levels consistent with international best practice.

As a result, CA issued a moderated rate of Kes 0.41 for a period of two years, effective from March 1, 2024, to February 2026. Following the expiry of the termination rates on February 28, 2026, the Communications Authority said it established a glide path for a period of four years, effective from March 1, 2026, to February 28, 2030, which progressively transitions Kenya’s termination rates toward the cost-efficient levels in line with global trends.

“In undertaking the review, the authority has considered the need to strike a balance between promotion of investment, protection of consumers, and the prevailing economic and market environment as well as best practices in the region and globally,” Director General David Mugonyi said on Friday.

Adding that once the market attains the target of Kes 0.30 per minute, a further review will be undertaken based on market trends and prevailing market conditions.

Mobile termination rates (MTRs) are crucial because they directly influence the retail prices of phone calls, determining the cost of calling between different networks.

High MTRs often act as a barrier to market entry, restricting competition, keeping off-net call prices high, and favoring large, dominant operators, while low, cost-based rates increase consumer welfare and enhance market competitiveness.