Introduction
The Communications Authority of Kenya (CA) has published its Revised Telecommunications Market Structure for 2026, updating Kenya’s telecoms licensing regime. The review aimed to remove market barriers identified over time, in line with CA’s mission to enable regulation. The revised structure also seeks to align with the ICT Policy Guidelines of 2020, the Kenya Government Manifesto and the Authority’s 2023-2027 Strategic Plan.
Key Changes
The revised market structures introduce new licence categories, expand the scope of existing ones and simplify licensing for small operators. Below is an outline of the changes.
Network Facilities Provider Licences
The Authority updated the scope of coverage of the Network Facilities Provider – Tier 3 Licence (NFP-Tier 3), from a single county coverage to three counties, making it more commercially viable and attractive to potential investors. The licence permits the holders to build and lease towers, interlink their infrastructure across the licensed counties, and establish satellite hubs (VSAT terminals) within the licensed counties. If an entity holding an NFP-Tier 3 licence wishes to operate and expand beyond three counties, they must upgrade to an NFP-Tier 2 licence, with downgrading the NFP-Tier 3 licence to the new MNSP licence not permitted.
The licence fee remains KES 200,000, with an annual operating fee of 0.4% of Annual Gross Turnover.
The NFP – Tier 2 Licence has been revised to include data centre licensing. Entities already holding the licence may establish commercial data centres without needing a separate licence. The 15-year licence has a licensing fee of KES 15,000,000 and annual operating fees of 0.4% of annual gross turnover.
NFP – Tier 1 licence, which allows the licensee to operate nationwide, has been updated to provide for a 25-year licensing term in addition to the standard 15-year term, allowing for greater investment certainty. The licensing fee for the 25-year term is KES 45,000,000, compared to the KES 15,000,000 for the standard term.
The Authority has also made a significant revision by adding the Micro Network and Services Provider Licence (MNSP), designed for entities and investors who can invest within limited-service areas, from residential estates to the county level. Also seeks to curtail illegal service providers operating in residential and small geographic areas, while promoting competition in service provision, with the net effect of lowering the cost of services to consumers. The service covers voice, data, and internet.
International Licences
A new licence category has been created specifically for Landing Rights Authorisation (LRA), covering the transmission of telecommunications signals into Kenya to facilitate internet connectivity via satellites and/or submarine cable. The licence is technologically neutral, covering satellite, cable and terrestrial technologies.
Previously, landing rights were bundled together with the International Gateway Systems and Services (IGSS) Licence. The separation of the two is aimed at removing barriers for entities seeking to land infrastructure in Kenya without the need for the full IGSS licence.
The IGSS licence, on the other hand, has been updated to be technology neutral and now formally covers the establishment and operation of satellite earth stations, submarine cable landing stations, cross-connect facilities and commercialisation of submarine cable capacity. The switching/routing and Network Control/Operation Centre must be physically located in Kenya.
The separation of the LRA from the IGSS licence is a strategic move by the Authority to position the country as a regional hub, making it easier for international submarine cable entities to land in Kenya and for the country to serve as a gateway for landlocked countries.
Equipment Licensing
The authority has restructured equipment-related licensing into a clearer, independent system, separating importation, contracting and vending. The structure now provides for the Communications Equipment Distributor (CED) Licence, the Communications Equipment Contractor (CEC) Licence, and the Communications Equipment Vendor (CEV) Licence.
Conclusion
The revised market structure overall seeks to remove barriers in the telecommunications sector and encourage expansion of the sector with the aim of translating the expansion into cheaper services for the consumers.