A recent study by the mobile industry lobby group GSMA and the Partnership for Digital Access in Africa (PDAA) has revealed that the cost of internet-enabled phones and data is limiting Kenyans' participation in the digital economy. The study found that 68% of Kenya's adult urban population uses mobile internet, while 27% are aware of it but do not use it, and 6% remain unaware. In rural areas, 49% use mobile internet, 38% know about it but do not use it, and 13% remain unaware.
The cost of an internet-enabled handset is the biggest reported barrier for people who are aware of mobile internet but remain offline in both urban and rural areas. Among those already using mobile internet, the cost of data is the biggest obstacle to using it more. This highlights a growing gap between being connected to a network and being able to participate meaningfully in the digital economy. The research identifies affordability, digital skills, and online safety as the main barriers to mobile internet adoption and use globally.
The global smartphone market is facing pressure from a shortage of memory chips, with manufacturers prioritizing supply for high-margin artificial intelligence (AI) data centers. Global smartphone shipments fell 11% year-on-year in the second quarter of 2026 to their lowest second-quarter level since 2013, according to Counterpoint Research. Rising memory costs have particularly affected entry-level and mid-range devices, which account for much of the market.
For Kenyans looking for a basic smartphone, the pressure on the market that needs to remain affordable to bring more people online is significant. The World Bank has previously linked Kenya's relatively high mobile data prices to the country's concentrated telecom market, arguing that greater competition could help lower costs and increase usage. Its 2025 analysis found that Kenya's mobile market is highly concentrated and linked this structure to higher data prices and lower usage than some regional peers.
The Communications Authority of Kenya (CA) data shows that demand for mobile internet continues to rise. By June 2026, mobile data subscriptions had reached 64.3 million, up 9.7% from 58.6 million a year earlier. Mobile broadband accounted for 85.5% of total subscriptions, with 4G accounting for 48.3 million. 5G subscriptions more than doubled over the year to 2.1 million, while the number of feature phones connected to mobile networks continued to fall.
The GSMA research shows that while 68% of Kenya's urban adults use mobile internet, the share falls to 49% in rural areas. Rural Kenyans are also more likely to be aware of mobile internet without using it, with 38% in that category compared with 27% in urban areas. The GSMA argues that countries need to look beyond the number of towers or the percentage of the population covered by a network when measuring digital inclusion.
To address these challenges, the GSMA priorities include accelerating migration from 2G and 3G to smartphone-based 4G and 5G use and integrating energy and connectivity investment. Mobile operators rely on diesel to power some network sites in areas without reliable grid electricity. The GSMA has previously warned that rising fuel costs can increase network operating expenses and put pressure on the affordability and reliability of mobile services.
Key points
- The high cost of internet-enabled phones and data is limiting Kenyans' participation in the digital economy.
- The concentrated telecom market in Kenya has been linked to higher data prices and lower usage.
- The GSMA is prioritizing accelerating migration to 4G and 5G and integrating energy and connectivity investment to address digital inclusion challenges.
