Mobile (SIM), data/Internet subscriptions, and Internet traffic experienced significant growth in the fourth quarter of the financial year 2023/24, according to the latest Sector Statistics Report by the Communications Authority of Kenya.
The surge is primarily due to the proliferation of 4G and 5G telecommunications infrastructure, rising smartphone penetration, and consumer demand for fast internet.
Additionally, mobile money services are still a key component of financial inclusion.
Further, removing transaction codes for M-Pesa and Airtel Money transactions increased uptake, improving convenience when transferring funds between the two mobile wallets.
The period was also marked by a significant increase in satellite Internet subscriptions and bandwidth following the licensing and subsequent rollout of Starlink Internet services in the country. This trend is expected to continue in the coming periods considering that this technology provides high-speed, low-latency broadband connectivity, especially in areas where the internet is unavailable or unreliable.
Kenya’s mobile penetration rate as of June 2024
The mobile (SIM) stood at 68.9 million subscriptions, translating to a penetration rate of 133.7 per cent by the end of June 2024. The Minutes of Use per Month per Subscription dropped to 120.4 minutes from 123.4 minutes recorded in the preceding quarter.
Similarly, short messages sent per month per subscription declined to 65.4 from 65.8 messages. Again, this decline is attributed to the normalization of usage patterns following the conclusion of the busy festive seasons in quarters two and three.
How much did mobile services generate in 2023?
In 2023, mobile services generated Ksh 384.3 billion in revenue, marking a 13.2 per cent increase from 2022. On the same trend, investment in the mobile sub-sector grew by 20.6 per cent, to record Ksh70.9 billion in 2023.
The number of employees was 11,339 in June 2024 up from 10,526, with a male-to-female ratio of 57:43.
As of 30th June 2024, mobile money subscriptions stood at 39.8 million translating to a penetration rate of 77.3 percent. This increase is directly proportional to the increase in mobile (SIM) subscriptions.
During the period, the total number of mobile phone devices connected to mobile networks was 66.1 million with a penetration rate of 128.3 percent.
What is the penetration rate for smartphones in Kenya?
The penetration rates for smartphones and feature phones were 68.3 and 59.9 per cent, respectively. The total fixed data/Internet subscriptions experienced positive growth driven by increasing reliance on digital platforms for work, education, healthcare, and entertainment, along with attractive tariffs and special offers from service providers.
Fixed Internet subscriptions grew by 7.4 per cent to a record 1.5 million. Satellite subscriptions recorded a significant growth of 73.1 per cent in quarter four and 1,955.3 per cent growth in the 2023/24 financial year.
This growth is attributed to the licensing and subsequent launch of Starlink Internet Services Kenya earlier in the financial year.
The total revenues realized by private courier operators through national and international courier services grew by 12.1 per cent in 2023 to Ksh 6.22 billion, while the number of persons employed by courier operators by the end of June 2024 was 6,112 with a male-to-female ratio of 64:36.
On the other hand, the total revenue generated by Application Service Providers in 2023 stood at Ksh 22.33 billion up from Ksh 21.24 billion in the previous year translating to a 5.1 percent increase.
The investment in this sub-sector, however, declined 4.6 per cent to stand at Ksh 6.23 billion.
[…] Kenya’s Mobile and Internet Subscriptions Surge in 3 Months to June 2024 […]