World Bank Pushes for Lower Mobile Call Charges in Kenya as MTR Debate Heats Up

The World Bank keeps has put more pressure on Kenya to bring down the mobile termination rates (MTRs). And the main reason is that Kenyans are still being denied cheaper call rates because the regulator keeps delaying the adoption of cost-based pricing.

MTRs are the fees mobile operators charge each other when customers make calls that land on rival networks. And when those rates stay high, the operators pass the cost on to consumers - making calls more expensive than they need to be.

Why Lower MTRs Matter Now

The current MTR set by the Communications Authority of Kenya (CA) expires on February 28th 2026 which is when a new review cycle will kick in. Kenya's made some reductions to the MTR in recent years but the World Bank is saying that the rates are still too high especially when compared to some of its neighbours.

In March 2024 the CA cut the MTR from Sh0.58 to Sh0.41 per minute after a heated standoff between Safaricom and its rival telcos Airtel and Telkom. However the regulator had originally planned an even bigger cut - down to Sh0.12 per minute in 2022 but Safaricom had strongly opposed that.

Kenya's Falling Behind Regional Peers

According to the World Bank's latest Kenya Economic Update, in spite of the reductions Kenya's MTRs remain high. The lender points out that:

• Tanzania is charging the equivalent of Sh0.088 per minute and it's already scheduled to make another cut.

• Uganda reduced its MTR to 26 UGX (Sh0.95) in 2023 from 45 UGX (Sh1.64).

• Other African markets like Ghana already operate at lower, cost-reflective levels.

A study carried out by the CA in 2022 found that the actual cost of terminating a call in Kenya was just Sh0.06 - and that's a long way below the current rate of Sh0.41.

High MTRs Favour Big Telcos Like Safaricom

The World Bank warns that the current situation creates a "club effect" that works in favour of the bigger operators. Because smaller networks have fewer customers they end up paying MTRs on a much larger share of off-net calls.

Which means:

• Safaricom benefits most because it has a massive market share.

• Smaller operators like Airtel and Telkom are paying a lot in interconnect fees.

• And ultimately it's the customers who end up paying more for their calls.

As of June 2025 Safaricom controlled 63.4% of the Kenyan voice market - and that's with 18.49 billion minutes of calls out of a total 29.16 billion minutes. Only 7.9% of Safaricom's calls went to rival networks. Meanwhile Telkom had almost equal on-net and off-net minutes - 17.3 million and 17.4 million - which means it pays a lot to terminate calls on Safaricom's network. Airtel also incurs big fees - with almost 30% of its calls going off-net.

Consumers are Paying More Than They Need to

Even with those high standard tariffs - Safaricom charges up to 4.87 shillings a minute and Airtel up to 4.30 - actual call costs can be as low as 1 shilling in certain bundles. Industry analysts argue this shows the real cost of providing voice services is actually pretty low - which is a pretty strong argument for reducing MTRs.

The World Bank also points out that cutting MTRs is especially important for low-income Kenyans. Half of the lowest 40% of households rely on basic phones and they're making a lot more phone calls than they are using the internet. So lower MTRs translate directly into cheaper communication for millions of households.

Another MTR Review is On the Horizon

With the current rates set to expire in February 2026, the industry is all waiting to see how hard the Communication Authority is going to push for new cuts.

In the meantime, Tanzania's already scheduled in two more drops:

• 1.6 Tanzanian shillings (0.085 Kenyan shillings) from January 1, 2026

• 1.52 Tanzanian shillings (0.081 Kenyan shillings) from January 1, 2027

East African countries are all trying to make voice communications more affordable - and if Kenya doesn't get its act together it's going to get left behind with those higher charges.

Telcos Are Starting to Feel the Burn of Declining MTRs

And it's already starting to hit major operators' bottom lines - Safaricom has seen its interconnect revenue take a hit of over 2 billion shillings a year as rates have dropped from 2.21 shillings a minute back in 2010 to where they are now.

While Safaricom dominates the Kenyan market, its actually the underdog in Ethiopia - and lower MTRs could be a key factor in helping it grow its new operation there.

The Bottom Line

Kenya's MTR debate is far from over. The World Bank believes slashing the charges further will:

• Promote fairer competition

• Lower call costs for millions of Kenyans

• Give smaller telcos a break by making it easier to enter the market

• Bring Kenya in line with its regional neighbours

It's going to be interesting to see what the Communication Authority decides as the deadline of 2026 approaches - will they finally start to adopt proper cost-based pricing - or will the industry just stick with higher charges that keep voice calls more expensive than they need to be?