Safaricom License Costs Rise Sh1.7 Billion as Telco Secures 25-Year Operating Extension
Safaricom Plc splashed out an extra Sh1.7 billion on licenses in Kenya for the financial year that just wrapped up in March 2026 - and that's largely because it managed to get it's 25 year operating licence renewed by the Communications Authority of Kenya.
License Fee Costs Skyrocket
Figures from the telecoms giant show that the direct cost of it's licence fees rocketed up to Sh16.38 billion in the past year, up from Sh14.66 billion the year before - that's a pretty big increase.
The CA issued the 25 year extension under it's Unified Licensing Framework which is designed to get all the different bits like spectrum usage and other permits sorted out in one go.
Peace of Mind For Years to Come
The good news for Safaricoms investors is that this long term approval should wipe out a lot of uncertainty over the future of the company - especially now they don't have to worry about getting their temporary 2 year licence renewed.
“We can now plan with confidence for the next 25 years and just keep on doing what we do best: delivering on our purpose,” said Adil Khawaja, Chairman of Safaricom.
“We’re just celebrating our first 25 years and we get another 25-year licence from the CA under a brand-new framework that’s way more streamlined and efficient,” he added.
The Old Temporary Licence Arrangement
Safaricom and Airtel Kenya had previously been given temporary 2 year operating licences back in 2024, while they were hammering out the details of a new licence with the CA.
When asked about the exact price they paid for the new licence, Safaricom kept it under wraps. The CA does normally issue 10 year licences, so this new 25 year deal is a bit of a one off in Kenyas history of telecommunications licensing.
It's not clear yet whether Airtel Kenya got the same deal under the same terms and conditions
The Licence Regime Shift
These temporary licences were brought in as part of a big shake up in how the regulator does things, aiming to move away from just doling out spectrum to operators and towards a system where its all auctioned off to the highest bidder.
Past Licence Fee Payments
Back in the day, Safaricom paid Sh1.63 billion for a 2 year operating permit and Sh6 million in admin fees. Airtel Kenya paid Sh494 million plus Sh6 million for their own licence renewal in 2027, although their fees were a bit lower because they don't have as much spectrum as Safaricom
Before the regulatory change, both of them had paid a combined Sh2.3 billion for 10 year licences - a whole different ball game.
Long Term Impact On Safaricoms Strategy
This 25 year licence gives Safaricom a huge amount of peace of mind and certainty, allowing them to make long term investments in their infrastructure without worrying about renewing their licence.
This is especially important because Safaricom is on the move into new areas like mobile money, fibre internet and enterprise solutions across Kenya and the wider East African region - and thats a major opportunity for growth.
The jump in licence costs is also a sign that Safaricom are now paying for the extended duration of the licence, and potentially a few tweaks to the fee structure under the new regulatory regime.
