Kenya’s telecommunications sector has grown rapidly in the last decade, with mobile SIM subscriptions at the core of its digital transformation, as more people use mobile phones to communicate and make financial transactions.

Recent data from Communication Authority of Kenya (CA) second quarter report indicates that by December 2024, active mobile subscriptions had surged to 71.4 million, reflecting a 2 per cent increase in just three months.

This pushed mobile penetration to an impressive 138.5 per cent, indicating the country’s dependence on mobile connectivity for communication, financial transactions, and digital services.

“This growth is mainly attributed to the busy festive season that occurs within this timeframe,” CA said, citing heightened communication needs and increased mobile activity that fueled the demand for new SIM cards.

Market leader Safaricom maintained its dominance, holding a commanding 65.7 per cent share, while Airtel Networks Kenya followed at 29.6 per cent.

Smaller players, including Telkom Kenya and Equity Group’s Finserve (Equitel), comprised less than 5 percent of the market. The overwhelming preference for prepaid plans, which account for more than 98 per cent of subscriptions, underscores the flexibility and affordability that make mobile services accessible to a broad segment of the population.

Mobile connectivity is more than just voice calls and messaging. The country’s mobile money ecosystem, a model for financial inclusion across Africa, expanded alongside SIM subscriptions. Mobile money users grew by 4.1 per cent during the quarter, reaching 42.3 million, resulting in an 82.1 per cent penetration rate.

Enhanced use of mobile finance

Safaricom’s M-Pesa continued to dominate, holding an impressive 92.3 percent of the market, while Airtel Money followed with 7.6 percent. The widespread adoption of mobile financial services has transformed how Kenyans access banking, send money, and make payments, further embedding mobile technology into everyday life.

The surge in SIM registrations has also driven a significant increase in mobile broadband usage. With digital services expanding, demand for high-speed internet has surged. Mobile data subscriptions grew by 3.2 per cent to reach 56.1 million, with mobile broadband accounting for 78.4 per cent of these connections.

Adoption of 4G and 5G networks played a crucial role in meeting consumer demand for faster speeds, enabling online activities such as streaming movies, online learning, and remote work, thereby accelerating the appetite for high-speed internet and leading to increased uptake of advanced mobile technologies.

Consequently, average broadband data consumption per user rose from 12.6 GB to 13.1 GB, while total broadband usage skyrocketed by 12.8 percent to 568,315.8 terabytes. By the end of 2024, smartphone penetration achieved an all-time high of 80.5 per cent, while the use of basic feature phones dropped to 59.3 percent.

However, the sector’s rapid growth saw cybersecurity threats escalate by 27.2 per cent during the quarter, with over 840 million incidents detected. In response, Kenya’s National e-CIRT/CC issued over 11 million advisories to strengthen the country’s digital infrastructure against increasing cyber risks.