CA announces major slash in mobile termination rates through 2030

The Communications Authority of Kenya (CA) has officially released Interconnection Determination No. 5 of 2025.

The new directive outlines a progressive path that will systematically reduce Mobile and Fixed Termination Rates (MTR/FTR) over the next four years. It is aimed at lowering costs for consumers and leveling the playing field for smaller operators.

Starting March 1, 2026, the current termination rate of Ksh. 0.41 per minute, which has been in place since March 2024, will be slashed to Ksh. 0.37 per minute. This marks the first step in a long-term strategy to align Kenya’s telecommunications costs with global benchmarks and the findings of the 2022 Network Cost Study.

The Authority has provided a clear roadmap for the market, detailing year-on-year reductions that will eventually see rates drop to Ksh. 0.30 by 2029.

Interconnection rates are the fees that telecommunications operators charge each other to terminate calls on their respective networks. High rates often act as a barrier to entry, making it expensive for customers of smaller networks like Airtel or Telkom to call users on larger, dominant networks.

By lowering these caps, the CA aims to:

• Encourage Fair Competition: Smaller providers can offer more aggressive off-net calling rates without being penalized by high interconnection costs.
• Lower Retail Tariffs: As the cost of doing business drops for operators, those savings are expected to be passed down to the Kenyan consumer in the form of cheaper calling bundles.
• Promote Market Efficiency: The CA noted that high rates negatively impact consumer welfare and affordability, and this reduction helps move the industry toward more cost-efficient levels.

The Determination, signed by Director General David Mugonyi, clarifies that these rates serve as a price cap. This gives operators the latitude to negotiate even lower rates among themselves, provided they do not exceed the set limits.