Kenya's telco industry is showing signs of maturity with the number of new SIM subscriptions slowing sharply even as competition in the industry remains a two-horse race pitting Airtel Kenya against Safaricom.

According to the Communications Commission of Kenya (CA) quarterly report covering the April to June 30 quarter, the industry recorded 4.6 percent increase in mobile SIM subscriptions to close at 88 million.

While this growth remains strong, it represents a sharp dip from the 7.4 percent growth in new SIM subscriptions that was reported in the previous January to March quarter.

Statistics from CA shows that Kenya's mobile penetration now stands at 165 percent, meaning that individuals are increasingly owning multiple SIM cards in a saturating market.

At the moment, Safaricom remains the industry leader commanding nearly seven in every 10 mobile subscriptions in the country. It’s rival Airtel Kenya enjoys 26.8 percent mobile subscription rate while Telkom Kenya, Equitel and Jamii Telecommunications all share less than 4 percent mobile subscription.

However, Airtel Kenya continues to experience growth in its mobile money service, which has grown to 11.1 percent in market share up from roughly 2 percent in 2022. Additionally, Airtel Kenya has seen its mobile subscriber pool expand to over 24 million from 16 million during the same period.

M-PESA dominance

Fintech M-PESA enjoys an overwhelming 88.8 percent share according to the latest data from the industry watchdog. 

M-PESA processed 46.4 billion transactions estimated at KES41.7 trillion during the 2025/2026 fiscal year, with "kadogo" transactions representing 17.1 billion during the year under focus, CA report states.

What's more, the market continues to experience increased growth in mobile data consumption with CA statistics showing the industry recorded 9.7 percent jump in new customers to 64.3 million. At the moment, broadband subscriptions represent 85.5 percent of data consumption in the industry.

CA noted that the average monthly data consumption per 5G subscription increased to 64.4 GB in June 2026, compared with 15.8 GB on 4G and just 8.3 GB on 3G. 

The quarterly trend shows 5G consumption climbing steadily from 35.2 GB a year earlier, underscoring the premium users place on speed.

Smartphone adoption continues to rise in tandem, with 52.3 million smartphones connected to mobile networks, a 4.2 per cent quarterly increase. 

At the same time, the use of feature phones declined by 3.9 per cent to 27.4 million units. Smartphones now account for the majority of connected devices.

Mobile money penetration

Mobile money subscriptions grew by 1.2 per cent during the quarter to 54.0 million, translating to a penetration rate of 101.3 per cent. The number of registered mobile money agents, however, declined by 5.6 percent to 568,463, a notable contraction in a segment that has expanded rapidly in recent years.

The decline in agent numbers, even as subscriptions grow, suggests that the physical distribution network is consolidating. With smartphone penetration rising and interoperability improving, more transactions are moving directly between digital wallets rather than through cash-in, cash-out agents. 

CBK data shows that while active agent numbers crossed 500,000 earlier in the year, transaction values through agents fell by nearly 20 per cent in like-for-like terms, confirming a structural shift in how Kenyans access digital money.

Voice business

Domestic mobile voice traffic grew by 13.6 per cent year-on-year to 126.7 billion minutes. On-net voice traffic accounted for 106.1 billion minutes, while off-net traffic was 20.7 billion minutes.

SMS traffic declined marginally by 0.3 per cent to 57.1 billion messages, continuing a long-term trend of substitution by over-the-top messaging services such as WhatsApp. Safaricom alone accounts for 93.1 per cent of domestic SMS traffic.

Mobile service revenue rose by 3.6 per cent to KSh 440.9 billion in the year to June 2025. Other services, including roaming, bulk SMS, airtime credit and mobile money, accounted for the largest share of revenue at 42.8 per cent.

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