Kenyan Regulator Caps Mobile Termination Rates to Boost Affordability and Operator Flexibility

As of March 1, 2024, the Kenyan Communications Authority has set the Mobile Termination Rates (MTRs) and Fixed Termination Rates (FTRs) at KES 0.41 per minute, signaling a reduction from the current rate of KES 0.58 per minute. Notably, the SMS termination rate of KES 0.05 per SMS remains unchanged.

MTRs and FTRs represent the fees operators charge each other for facilitating communication across networks. The adjustment, applicable solely to local voice traffic within Kenya, aims to align with economic conditions, ICT market dynamics, and a balance between fostering investment and safeguarding consumer interests.

This decision, valid for a two-year period starting March 2024, is anticipated to yield positive outcomes. Consumers can expect more affordable calling rates and increased access to diverse services across networks. Simultaneously, operators gain greater flexibility in pricing, facilitating the development of more cost-effective products.

In preparation for the implementation of the new rates, all operators are mandated to amend their Interconnection Agreements in accordance with the Authority’s Determination. The deadline for filing Deeds of Variation with the Authority is set for February 1, 2024. This regulatory move signals a proactive approach to ensuring fairness, competition, and improved services within Kenya’s telecommunications landscape.