This article will evaluate the state of mobile penetration and uptake in Kenya, drawing from several data sources that examine mobile penetration, mobile internet usage, and mobile money. 

The Mobile Penetration Rate in Kenya

Gathering concrete data on Kenya’s mobile penetration rate is difficult, as independent studies define mobile penetration differently. However, using a combination of sources, we can approximate how prevalent mobile phones are in the market and how much mobile penetration is expected to grow over the coming years.

The World Bank’s pointer is mobile cellular subscriptions, which as per the latest data in 2019, places the figure at 104%. The Kenya Government’s Communications Authority defines mobile users by SIM penetration, and as of June 2020, reported a 119.9% mobile penetration, a 10% growth from the previous period. We must note that the extra penetration rate is driven, to no small extent, by the ownership of multiple SIM cards, as price-sensitive consumers take advantage of the different offers of the various mobile network providers.

GSMA defines mobile penetration by unique mobile subscribers to counter the drawback of counting total subscriptions, which stood at 59% in 2017. A study conducted by Pew Research in 2017 found that 80% of adults in Kenya reported owning a mobile phone, with 30% owning a smartphone and 50% owning a basic phone.

No matter how you look at it, Kenya’s mobile penetration is higher than the average of the rest of Sub-Saharan Africa and continues to snowball as more and more previously unconnected people, and regions in the country get access to mobile services. 5G technology is now being trialed in Kenya, and GSMA estimates that Kenya will have 7 million new mobile subscribers by 2025.  

Mobile Internet Usage in Kenya

In addition to the penetration of basic mobile services such as voice calls and SMS, it is essential to look at internet and smartphone penetration. Digital connectivity plays a vital role in transforming and improving lives, as it opens the door to employment, financial opportunities, and inclusion for people across the world. There has been a rapid growth in internet penetration in emerging regions over the last decade, with the Boston Consulting Group (BCG) forecasting that more than 90% of all new internet users will come from emerging markets.

For a country that relies so heavily on the mobile phone, it is not surprising that internet access skews towards mobile internet in Kenya. The Kenya Digital Report found that 97% of all internet users in Kenya access the internet on mobile phones, with Kenyans spending over four and a half hours every day using the internet on their phones. As a segment of the overall population, GSMA places the mobile internet penetration rate in Kenya at 27% of the people, representing one of the highest five-year growth rates in Africa.

The growth in mobile internet use in Kenya correlates with a rise in smartphone usage, driven by the emergence of cheaper smartphones and a relatively young population actively looking for information and connection online. This prevalence of smartphones has gradually made Kenya a favorite launchpad for several mobile-based services, including mobile money, targeting the region. 

M-Pesa and Mobile Money Usage in Kenya

It is difficult to talk about mobile in Kenya without discussing mobile money. Kenya leads the world in the adoption of mobile money services, which enable sending and receiving of money through mobile-based accounts, with 96% of households owning a mobile money account.

Mobile money in Kenya is almost synonymous with M-Pesa (which means mobile money in Swahili), which refers to the global market leader in mobile money, Safaricom’s M-Pesa. M-Pesa holds a nearly universal market share of 98.9% of the Kenya mobile money market. Since its launch in 2007, M-Pesa, and by extension other mobile money providers, have contributed positively to Kenyans’ financial inclusion. Transactions performed on mobile money providers include paying for commodities and services, taking out loans, opening savings accounts, making payments for government services, and betting, among others. In an otherwise severely unbanked population, 73% of adults were financially included in 2017; and of these financial account holders, 98% held mobile money accounts.

Mobile money is so crucial to Kenya’s economy, with at least 50% of Kenya’s GDP flowing through mobile money, that most mobile money transactions were zero-rated to shield citizens from the effects of COVID-19. In GeoPoll’s 2020 Year-End survey, we found that customers were using mobile money more frequently in 2020 than in the previous year, likely driven by COVID-19 and a desire to use contactless payment methods.

Conclusion

The mobile phone has become essential for day-to-day life around the globe. As more and more people worldwide get connected to phone services, regions experience growth as it becomes easier for information to flow and citizens to access banking and other essential services. Casting a glance at mobile penetration levels in different areas globally, it becomes clear that countries with better mobile access rates are typically economically stronger than countries with less connectivity. This may probably be one of the keys to inclusive growth globally, as is apparent in Kenya. The growth of mobile penetration in Kenya has led to increased employment and income generation, which manifests as more people get access to phones.

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GeoPoll, whose largest office is based in Nairobi, leverages the growing power of mobile to conduct surveys throughout Kenya and sub-Saharan Africa. We reach people on their own mobile devices through SMS surveys, voice calls, and web-based methodologies and conduct in-person surveys recorded on mobile devices to reach those who do not have access to their own mobile phones. For more information on our mobile methodology, please contact us today.

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Drones, Satellites, and Lasers: The latest idea to bring internet access to everyone is based not on old-school cables and towers, but will instead “beam” internet signals down to unconnected and remote areas using a combination of satellites, lasers, and low flying unmanned aircrafts.

• Key Players:  Internet.org, a partnership between big mobile and technology players including Facebook, Ericsson, Nokia, Qualcomm, Samsung, and others.  
• How it Works: This recently released video explains the idea well, but it will involve several layers of airborne connections, including low orbit and geo-synchronous satellites, and an on-the-ground connection which will have to seamlessly move between signals to provide continuous access.

Balloons: Another sky-based idea, this involves high-altitude balloons traveling above the earth and providing WiFi capability to those below. It’s an idea which has been criticized by some for being so out-there, but is already being tested and you can even track the balloon progress online. 

• Key Players: Google, also part of the Alliance for Affordable Internet, whose other partners include USAID, the Omidyar Network, and local organizations in the developing world.  
• How it Works: Balloons travel about 20 kilometers above the earth using solar power for energy. They move with the wind, in coordination with software algorithms that determine where each balloon needs to be in relation to other balloons and the Earth. Each balloon can provide internet access at 3G speeds to an area of about 40 km in diameter.

Fiber-Optic cables: The old approach, fiber-optic cables are how much of the world already gets online. There are over half a million miles of undersea cables which transmit data between continents, but in developing countries challenges have arisen when trying to build the “last mile” of connectivity- the one that actually gets the Internet into homes and businesses. 

• Key players: Telecom companies, governments, and others across the globe. 
• How it Works: Cables transmit data undersea and on land, and in Africa almost all coastal countries are already connected by this method.  However, when international cables “dock” in countries such as South Africa they still need to travel inland via more cables, which is why it takes so long for remote areas to get reliable internet access.

Public libraries: Less of a technological innovation, this idea will use the existing infrastructure of public libraries across the globe to give communities access to internet connections, and additionally provide citizens with training on computers and the internet. 

• Key Players: The Gates Foundation
• How it Works: This system takes advantage of the staff and technology already being offered in many public libraries, and uses libraries as a hub to provide internet access where there isn’t any. The Gates Foundation has done this before: free Internet in US libraries was one of their very first grants in 1997. 

And many more: There are many other smaller players coming up with ideas on how to best spread connectivity to the global unwebbed. Companies actually based and already working in the developing world have a unique perspective on the issues that arise when trying to get online in many parts of the world. 

• Key Players: Newer organizations such as BRCK, Otgplaya, and Librii.
• How it Works: These companies are using various technologies to connect the world. BRCK is a device which can act as a back-up Internet connection when power goes out (a common issue across Africa), or a primary connection in rural areas. It utilizes mobile network data when other connections are unavailable.
  

All of these ideas make it clear that it isn’t a question of if  the Internet will reach people in remote, developing areas, but when. However, drones and balloons flying up in space are still a long way off, and will undoubtedly involve months and years of testing before they are a widespread reality. In the meantime, mobile connections continue to go up in the developing world, and become a more reliable way of reaching the previously unreachable every day. Whatever comes next is anyone’s guess, but it will certainly be an interesting race to watch. 

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