Kenyans are set to benefit from cheaper cross‑network calls following a new review by the Communications Authority (CA).
The regulator has announced a phased reduction in Mobile and Fixed Termination Rates (MTR/FTR), the fees one operator pays another to complete a call on its network.
New Rates Effective March 2026
Beginning March 1, 2026, the termination rate will drop from KES 0.41 per minute to KES 0.37. Over the next four years, the CA will gradually reduce the rate further, reaching KES 0.30 per minute by 2030.
This marks the first adjustment since March 2024, when rates fell from KES 0.58 to KES 0.41.
Why the Reduction Matters
According to the CA, the move is designed to:
- Encourage continued investment in network infrastructure
- Maintain fair competition in the telecom sector
- Align charges with the true cost of service provision
The decision follows a 2022 telecommunications cost study, which revealed that prevailing rates were significantly higher than the actual cost of delivering calls.
Breaking Down Call Costs
Currently, the retail price of a cross‑network call is about KES 2.20 per minute. This includes:
- KES 0.41 for termination rates
- KES 1.20 for network service costs
- KES 0.60 for taxes and operator margins
By lowering termination rates, the CA aims to ease the burden on consumers. However, operators may choose to retain part of the reduction as margin, or repackage pricing into bundles and adjust off‑net versus on‑net tariffs.
Market Impact
The reduction is expected to benefit smaller players such as Airtel and Telkom, who rely on competitive pricing to grow market share. For consumers, the change promises more affordable calls and improved access to communication services.
Global Pressure for Change
The announcement also comes amid pressure from the World Bank, which has urged Kenya to lower termination rates, warning that high costs deny consumers affordable voice services.
