Safaricom, Airtel Face Proposed Upfront Spectrum Fees

In Short

Safaricom, Airtel, and Telkom Kenya could be required to pay large spectrum licence fees upfront.

The ICT Ministry has proposed changes to the Kenya Information and Communication Act. The changes would scrap a payment option introduced in 2019.

What Happened

Safaricom and other telecom operators in Kenya may have to pay billions of shillings upfront for radio frequency rights, also called spectrum.

Spectrum is the licensed “airwaves” mobile networks use to carry calls and data. Operators pay spectrum licence fees to get the rights.

The ICT Ministry is proposing amendments to the Kenya Information and Communication Act. If approved, the changes would remove provisions enacted in 2019 that allowed spectrum licence fees above Sh1 billion to be paid in instalments over up to 10 years.

The proposal still needs Parliament’s approval. It is not yet an enacted change.

Why It Matters

If the instalment option is removed, telecom operators would need more cash upfront when paying for spectrum.

That could affect how operators plan for big network investments that rely on spectrum rights, because spectrum payments would shift from spread-out instalments to upfront fees.