Kenya's ICT Ministry has published draft legislation that would change how mobile operators pay for radio spectrum, removing a payment option that has been in place since 2019.
The proposal
The Kenya Information and Communications (Amendment) Bill 2026 would delete subsections of section 25A of the Kenya Information and Communications Act that allow spectrum licence fees of more than KSh1 billion to be paid in equal instalments over up to ten years. According to the Business Daily, the bill states that the effect is that "every applicant shall pay the prescribed licence fees in full before the grant of a licence."
Who uses the current option
The instalment route was introduced by the Statute Law (Miscellaneous Amendments) Act 2018 and took effect in 2019. It is available only to Kenyan citizens or entities at least 51% Kenyan-owned, and requires the licensee to build at least 500 base stations within three years. Outstanding fees become due in full if the licensee loses its local ownership status or transfers the licence to a foreign-owned entity.
The Business Daily names Telkom Kenya and Jamii Telecoms among majority Kenyan-owned operators. Market leader Safaricom is controlled by Vodacom, and Airtel Kenya is owned by Airtel Africa. The Communications Authority declined to say which companies have used instalments.
Wider impact
The newspaper reports that the change could raise the initial capital needed to obtain spectrum and make it harder for smaller operators and new entrants to compete. Spectrum fees are separate from initial licence fees and annual operating charges.
Next steps
The ministry has invited public comments on the bill until 17 November 2026. It would then need to be passed by Parliament.
Why it matters financially
- Threshold: the instalment option currently applies to spectrum fees above KSh1 billion, payable over up to 10 years.
- Scale of licence costs: Safaricom's accounts for the year to March 2026 show it spent KSh16.3 billion on licences in Kenya, up from KSh14.6 billion a year earlier, as reported by the Business Daily.
- Competition: requiring full upfront payment would raise the cost of entry for locally owned challengers, which are the only firms that qualify for instalments today.