Kenya’s telecommunications sector is entering a new phase, with industry growth increasingly driven by usage of digital services rather than expansion in subscriber base.

This is according to Communications Authority of Kenya’s (CAK) latest quarter two report for the 2025/2026 financial year.

According to the report, total mobile (SIM) subscriptions reached 78.4 million, reflecting a marginal increase of 0.1 per cent from 78.3 million recorded in the first quarter.

The report indicates that while growth in subscriber numbers has slowed, activity across key segments of the sector remains strong, particularly in mobile money and data services, which continue to shape the country’s evolving digital economy.

Notably, mobile money subscriptions grew by 5.6 per cent during the quarter to reach 51.36 million, demonstrating the continued expansion of digital financial services across the country. The authority, in a press statement to newsrooms, noted that mobile money remains highly concentrated, with Safaricom retaining a dominant market share of about 89 per cent.

However, other operators are gradually strengthening their presence in the segment.

Similarly, the report shows that Airtel Kenya continued to gain traction, with the market share of its Airtel Money service rising from 10.3 per cent in the first quarter to 11.0 per cent in the second quarter.

“Mobile money subscriptions grew by 5.6 per cent to 51.36 million, signalling sustained growth in digital financial services,” the authority stated in the report.

Further, voice services also remain a significant component of the telecommunications sector despite the rapid growth of internet-based communication.

Likewise, the report depicts that Airtel Kenya recorded 11.83 billion minutes of voice traffic in the second quarter, an increase from 11.55 billion minutes recorded in the previous quarter, representing a 2.4 percent rise.

Similarly, off-network traffic grew by 8.4 per cent, an indication that cross-network communication is increasing and that operators are expanding their relevance beyond their immediate subscriber bases.

Usage trends further reveal that pricing and perceived value continue to influence consumer behaviour in the voice segment. Consequently, data from the report shows that average call duration among Airtel users stood at approximately 2.7 minutes per call, compared to about 1.6 minutes on Safaricom’s network, highlighting the role affordability plays in shaping access and usage patterns.

Meanwhile, demand for mobile data continued to expand steadily during the period under review.

Mobile data subscriptions increased by 2.9 percent, while broadband connections rose by 9.3 percent. Overall data consumption grew by 12 percent during the quarter.

Importantly, the growth in data usage has been linked to a 9.1 percent increase in smartphone adoption, alongside a gradual decline in feature phone usage, reinforcing the country’s transition toward data-driven digital ecosystems.

At the same time, short messaging services (SMS) continued to decline as more consumers shifted to internet-based messaging platforms.

Significantly, the report shows that Airtel Kenya recorded a 7.1 per cent drop in SMS volumes during the quarter, compared to an overall market decline of 2.6 per cent across operators including Safaricom.

Other players in the market such as Telkom Kenya and Jamii Telecommunications remain niche operators within the mobile segment, while emerging technologies and new entrants such as Starlink are beginning to reshape conversations around connectivity, particularly in underserved areas.

According to the authority, the latest industry trends indicate that Kenya’s telecom sector is gradually shifting from a subscriber growth model to one driven by service usage, digital financial solutions and data consumption.

The report concluded that as the market continues to mature, operators will increasingly compete on their ability to deliver value, expand access and build integrated digital ecosystems that support evolving consumer lifestyles.

• A Tell Media / KNA report / By Nicholas Ochieng and Nyawira Githinji