Kenyans are set to enjoy lower call rates after the Communications Authority of Kenya (CA) announced a phased reduction of mobile and fixed termination rates.
In a determination shared on February 26, the Communications Authority of Kenya stated that the phased reduction of termination rates will take effect over the next four years, starting March 1, 2026.
Starting March 1, 2026, mobile rates will drop from Ksh0.41 per minute to Ksh0.37, then continue falling each year, reaching Ksh0.35 in 2027, Ksh0.33 in 2028, and Ksh0.30 by 2029.
“That all mobile and fised telecommunications operators in Keryn shall implement the Mobile and Fised Termination Rates (MTB/FTH) for a period of four (4) yours with effect from March 1, 2026,” read part of the determination by the CA.
Under the new determination:
- All mobile and fixed operators must implement the prescribed mobile and fixed termination rates for local voice traffic originating and terminating within Kenya.
- The rates are set as price caps, allowing operators to negotiate lower interconnection rates if they choose.
- Operators are required to update their interconnection agreements in line with the new determination and file Deeds of Variation with the Authority by February 15, 2026.
CA Announces Phased Reduction of Termination Charges to Lower Call Costs
The move follows a 2022 Telecommunications Network Cost Study, which found that existing termination rates were higher than the efficient cost of providing mobile and fixed call services.
According to the authority, the study found that the prevailing mobile and fixed termination rates (MTR/FTR) exceeded the underlying network costs.
It recommended a phased glide path to gradually align the rates with cost-based levels in line with international best practice.
Hence, CA set a moderated rate of Ksh0.41 for two years, effective from March 1, 2024, to February 28, 2026.
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Following the expiry of these rates, the authority stated that it has introduced a four-year glide path, effective from March 1, 2026, to February 28, 2030, to gradually align Kenya’s termination rates with cost-efficient levels in line with global trends.
The communications regulator noted that the review also considered the need to balance investment promotion, consumer protection, and prevailing economic and market conditions, as well as regional and global best practices.
Also Read: Communications Authority Issues Notice to Importers of ICT Products
What is the Meaning of Interconnection Charges
Interconnection charges are the fees that one telecommunications operator pays to another to allow its customers to communicate with the other operator’s customers.
In simple terms, when two service providers’ networks are connected, the operator making the call or sending the message pays an interconnection charge to the other operator for carrying the communication.
For example, if a Safaricom customer dials an Airtel number, Airtel charges Safaricom to terminate the call on its network.
High fees between networks push up the cost of calls and data for users.
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