Kenya: CAK Initiates Lower Termination Rates, Promising Reduced Calling Costs for Kenyans

The Communications Authority of Kenya (CAK) has taken a significant step by capping Mobile Termination Rates (MTRs) and Fixed Termination Rates (FTRs) at KES. 0.41 per minute, effective from March 1st, 2024. While the termination rate for SMS remains at 0.05 per message, this adjustment is poised to bring about lower calling rates for consumers.

CAK, in a press release, emphasized that the new rate is crafted considering the prevailing economic environment, ICT market dynamics, and the necessity to strike a balance between investment promotion and consumer protection. MTRs and FTRs represent the costs operators charge each other to enable customer communication across networks, and CAK regulates these rates to ensure fair access, competition, and to prevent price gouging.

The current standard MTR and FTR, set at KES. 0.58 per minute, have been consistent across all telecommunications service providers in Kenya. The newly established rates will be applicable to local voice traffic within the country, aiming to reduce calling costs for consumers.

The revised rates are slated to be in effect for a two-year period, commencing March 1st, 2024. In preparation for the implementation of these new rates, all operators are mandated to adjust their Interconnection Agreements in accordance with the regulator’s Determination and submit their Deeds of Variation to the Authority by February 1st, 2024.