Kenya’s mobile subscription base has experienced remarkable growth, with active subscriptions rising by 1.6 per cent to 70 million in the first quarter of 2024/25, the latest data from the Communications Authority (CA) shows.

This surge from 68.9 million in the previous quarter has pushed mobile penetration to an unprecedented 135.8 per cent, underscoring the country’s escalating demand for connectivity and digital services. According to the report, the rise in mobile subscriptions reflects the increasing reliance on mobile technology across various aspects of life, from communication and financial transactions to education, healthcare, and entertainment.

The growth has been driven by expanded network coverage, more affordable devices, and enhanced mobile services, including faster internet speeds and innovative applications that cater to both urban and rural populations.

The widespread adoption of mobile technology has had a transformative impact on Kenya’s economy. Mobile money services such as M-Pesa, Airtel Money, and T-Kash continue to play a pivotal role in financial inclusion, enabling millions of Kenyans to access banking services, make payments, and save money.

Small and medium enterprises (SMEs), which form the backbone of the economy, have benefited immensely from these platforms by streamlining transactions and expanding their market reach.

With more Kenyans connected to mobile internet, online shopping platforms have seen increased traffic, creating new opportunities for businesses and entrepreneurs. Services like Jumia, Kilimall, and Copia are leveraging this trend, offering a wide range of products and doorstep delivery, even in remote areas. According to CA, the period under review saw mobile data subscriptions hit a record 53.7 million, driven by the growing adoption of 4G and 5G technologies, which now account for 58.1 per cent of total connections. The demand for high-speed internet is fuelled by activities such as streaming, online learning, and e-commerce.

“The telecommunications sector demonstrated overall growth during the quarter under review. Mobile SIM, machine-to-machine (M2M), mobile money and broadband subscriptions all grew, reflecting the sector’s continued expansion and adaptation to consumer demands,” stated the CA in its first quarter sector statistics for the financial year covering July and September 30, 2024.

Safaricom continued its dominance of the market, with 45.9 million subscribers equivalent to 65.7 per cent, followed by Airtel with 20.7 million (29.6 per cent). Smaller players include Telkom with 1.6 million (2.3 per cent), Equitel at 1.5 million (2.1 per cent), and JTL with 621,000 (0.9 per cent).

Pre-paid subscriptions accounted for the bulk of users at 68.6 million, while post-paid subscriptions stood at just 1.4 million, with Safaricom commanding an overwhelming 85.7 per cent share in this segment.

Machine-to-machine (M2M) subscriptions increased by 1.2 per cent to reach 1.8 million, reflecting the expanding adoption of Internet of Things (IoT) technologies across key sectors in Kenya’s economy.

This growth demonstrates how various sectors including agriculture, healthcare, hospitality, retail and manufacturing are leveraging IoT to increase efficiency, productivity, and innovation across various industries.

Mobile money services also saw growth, with subscriptions increasing by 2 per cent to approximately 40.6 million, while registered agents grew by 5.1 per cent to reach 365,432, further cementing Kenya’s position as a global leader in mobile financial innovation.

Smartphone penetration reached 72.6 per cent, driving greater access to digital services for financial transactions, communication, and daily tasks.  Meanwhile, traditional 3G broadband subscriptions continued to decline as consumers shifted to faster networks. 

However, this growth also comes with challenges. As mobile penetration surpasses 135 per cent, concerns about digital safety, cybercrime, and data privacy have become increasingly urgent.