Telkom Kenya Saw Sharp Subscriber Decline In 2023, New Report Reveals

The Communications Authority of Kenya (CA) has revealed a significant drop in the number of Telkom Kenya subscribers in 2023, following a crackdown on improperly registered SIM cards.

According to the CA’s latest report for the fourth quarter of the 2023/2024 financial year, other telecom networks were also affected by the decline in mobile subscriptions.

“There was a decline in the uptake of mobile SIM cards in the period ending 31st December 2023, attributed to high churn rates versus new acquisitions, particularly on the Telkom Kenya Limited network,” the report reads.

Telkom Kenya, the country’s third-largest telecom provider, lost 1.62 million subscribers between March 2022 and June 2023 as a result of the crackdown on irregular SIM card registrations.

By June 2023, Telkom had 2.25 million active users, marking a sharp 39% decrease from 4.14 million users in March 2022, according to an analysis of official data.

While Safaricom and Airtel, Kenya’s top two telecom providers, gained a combined 2.83 million active SIM card users between March and June 2023, overall mobile subscriptions increased only slightly.

Active mobile users in Kenya rose to 66.43 million by June 2023, up from 64.96 million in March 2022.

The CA has linked improperly registered SIM cards to criminal activities such as money laundering, kidnappings, threatening calls, cybercrime, and mobile money fraud.

In response to these risks, the government intensified its crackdown on unregistered SIM cards after the 2013 Westgate Mall terror attack, where attackers had used unregistered SIM cards to coordinate the assault. This crackdown has continued in recent years.

Also Read: Report: Mobile Services Generated Sh384.3 Billion In 2023

Under the current laws, street vendors who break SIM card registration regulations face penalties of up to Sh500,000 ($3,360), one year in prison, or both. Mobile network operators can be fined up to Sh5 million ($33,602) for non-compliance.

However, the CA report noted an uptick in mobile subscriptions in 2024.

“Notably, the uptake started picking up in the subsequent quarters, resulting in 68.9 million active mobile (SIM) subscriptions, translating to a penetration rate of 133.7 percent by the end of June 2024,” the report stated.