Mobile operators in Kenya have agreed to cut the cost of calls between them from Sh0.99 per minute to Sh0.58 per minute.
The new charges for mobile termination rates(MTR) took effect on August 1, 2022, and will be maintained for the next one year.
The new rates were effected after the conclusion of a case in which Safaricom had challenged the Communications Authority at the Communications and Multimedia Appeals Tribunal, saying it would be adversely affected by a change in tariffs.
Safaricom, Telkom Kenya, Airtel, and Jamii Telecom and Communication Authority of Kenya (CA) said that the reduction was reached after a consultative process.
“We are happy to announce that the Communication Authority of Kenya and Mobile Network Operators (MNOs) have through a consultative process mutually agreed on an interim Mobile Termination Rate (MTR) and Fixed Termination Rate of Sh0.58,” the statement said.
CA had proposed reducing the rates to Ksh.0.12 per minute for off-net calls. Data shows that 95% of Safaricom’s total traffic is on-net and only 5% is off-net, while for Airtel, 80% of its total traffic is on-net and 20% off-net.
Safaricom stands to lose substantial income from the new cuts, estimated at Sh1.5 billion annually. The company has a 67.8 % of market share in the voice market.