New termination rates suspended pending Safaricom appeal

7 Jan 2022

Kenyan mobile operator Safaricom has petitioned the Communications and Multimedia Appeals Tribunal to block the introduction of new mobile termination rates (MTRs), reports Business Daily. Last month the Communications Authority of Kenya (CA) announced that the fixed and mobile rates would be cut from KES0.99 (USD0.008) to KES0.12 per minute, effective 1 January 2022. The regulator said the reduction in rates should have a positive impact on both consumers and operators, and reduce the need for consumers to own multiple SIM cards as charges across networks fall. However, while Airtel and Telkom Kenya have backed the MTR decrease, market leader Safaricom said the move will negatively impact on its revenue and profitability, arguing that the CA should have adopted a cost modelling approach to determine termination rates, rather than an international benchmarking methodology. Following Safaricom’s application, the tribunal suspended the CA’s decision on the cuts until the appeal is heard on 2 February.