KENYA · TELECOMS · COMPANY NEWS
Key Facts
- What is happening Kenya lets approved operators pay spectrum fees above 1 billion shillings (about US$7.7 million) in instalments over up to 10 years.
- Why it matters Spectrum, the airwaves that carry mobile data and 5G, is a major cost, and payment rules decide who can afford new licences.
- The numbers Safaricom’s licence costs were 16.3 billion shillings (about US$125 million) in the year to March 2026, up from 14.6 billion shillings (about US$112 million).
- Who is who Safaricom is Kenya’s largest mobile operator, with Vodacom of South Africa a major shareholder; the Communications Authority of Kenya is the regulator.
- What to watch The court case on annual spectrum fees, any government move on the instalment rule, and further 5G licences.
- What it means for you Fee rules shape how fast 5G reaches Kenyan users and which operators can afford it, which matters to foreign investors.
Kenya lets approved telecom operators pay large spectrum fees in instalments over up to 10 years. Safaricom’s licence bills reached 16.3 billion shillings (about US$125 million) in the year to March.
Kenya’s telecoms law lets operators pay spectrum fees above 1 billion shillings (about US$7.7 million) in instalments. The option, added in 2018, lets payment run for up to 10 years.
Spectrum is the radio airwaves that carry phone calls, mobile data and 5G. Governments license it to operators for a fee.
How the Instalment Rule Works
The option was added by the Statute Law (Miscellaneous Amendments) Act 2018, according to a Bowmans law firm briefing. It applies to spectrum fees above 1 billion shillings (about US$7.7 million), and the Communications Authority of Kenya must consent.
Payment can run for no more than 10 years, and the applicant must be a Kenyan citizen or at least 51% Kenyan-owned. It must also commit to build at least 500 base stations within three years, the briefing says.
If local ownership falls below the threshold, the full balance becomes payable. Public information does not show which operators have used the option.
Safaricom’s Licence Costs and Court Case
Safaricom spent 16.3 billion shillings (about US$125 million) on licences in the year to March 2026. That was up from 14.6 billion shillings (about US$112 million) a year earlier.
Its group service revenue for that year was 414.1 billion shillings (about US$3.19 billion). In late October, Kenya’s High Court allowed Safaricom to join a smaller operator’s challenge to the regulator’s new annual spectrum fees.
Separately, Airtel Africa said Airtel Kenya bought 100 MHz of 5G spectrum for US$65 million over 25 years. Conversions use the Central Bank of Kenya’s rate of 129.95 shillings per US$ on 4 November 2026.
Related Rio Times reports cover the court ruling on Safaricom and Airtel Kenya’s 5G deal. More is on the Kenya hub.
What It Means for US Readers
Spectrum fees are a large cost for mobile operators, so payment rules affect who can afford 5G licences. Foreign investors in Kenyan telecoms weigh that cost against rollout plans.
Any effect of fee rules on customer prices is possible but unproven.
What Is Not Known
A local business report says the ICT ministry wants to end the instalment option. The ministry’s draft text and the reported 17 November comment date could not be confirmed.
It is unclear whether any change would hit only new licences or also existing plans. Public information does not show which operators use the instalment option, or how far Safaricom does.
What Comes Next
Watch for a published ministry draft or a bill that changes the instalment rule. Lawmakers would have to approve any change.
The 2018 instalment rule stays in force until Parliament acts. Annual spectrum fees are a separate matter, now before the courts.
Frequently Asked Questions
How can Kenyan operators pay for spectrum?
For fees above 1 billion shillings (about US$7.7 million), the regulator can allow payment over up to 10 years. Applicants must be Kenyan or at least 51% Kenyan-owned.
What is spectrum?
Spectrum is the range of radio frequencies that carries mobile calls, data and 5G. Governments license it to operators for a fee.
Is the instalment option being scrapped?
A local report says the ministry wants to end it, but the draft could not be confirmed. The 2018 rule stays in force until Parliament acts.
Why is Safaricom in court over spectrum fees?
In late October the High Court let Safaricom join a smaller operator’s challenge to the regulator’s new annual spectrum fees. The case concerns annual fees, not instalments.
Does this affect Safaricom customers?
No change to customer prices has been announced. Fee costs could affect rollout or prices later, but that is not shown.
Sources: Bowmans, briefing on the 2018 instalment option for spectrum licence fees (20 February 2019); Communications Authority of Kenya; Central Bank of Kenya, daily exchange rate (129.95 shillings per US$, 4 November 2026) (all accessed 4 November 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief