Safaricom, Kenya’s leading telecommunications operator, has achieved a significant milestone by securing a 25-year operating licence from the Communications Authority of Kenya (CA). This long-term licence, part of the Unified Licensing Framework, replaces a temporary two-year permit, providing the company with increased regulatory stability as it enhances its network investments and expands its services across the region.
Historically, the CA has issued operating licences with a maximum duration of 10 years. The new framework not only consolidates multiple authorisations, including rights for spectrum usage, into a single instrument but also represents a shift towards more streamlined regulatory processes. This development comes amid rising regulatory costs for Safaricom, which reported that its direct licence-related expenses increased from approximately US$113.4 million in the previous year to about US$126.7 million for the fiscal year ending March 2026.
Adil Khawaja, Safaricom’s board chairman, hailed the approval as a significant strategic achievement for the company. He stated, “As we celebrate our first 25 years, we have secured a licence to operate for the next 25 years under a unified framework from the CA.” Khawaja emphasised that this licence provides the necessary long-term certainty, enabling the company to invest confidently in its operations.
The Unified Licensing Framework is part of broader regulatory reforms aimed at transitioning the telecommunications market from administrative spectrum allocation to an auction-based system. This shift is anticipated to significantly alter spectrum pricing and competition dynamics in Kenya’s telecom industry.
For comparison, Airtel Kenya, which held a similar temporary two-year licence since late 2024, paid around US$3.8 million, reflecting its smaller spectrum presence. Its interim licence remains valid until January 2027, but it is yet to be seen whether Airtel will be granted equivalent long-term terms under the new framework.
Previously, both Safaricom and Airtel Kenya collectively spent about US$17.8 million on 10-year licences, with Safaricom’s two-year interim licence costing approximately US$12.6 million. These figures highlight the increasing value of spectrum and operating rights in Kenya’s competitive market.
Additionally, this long-term licence solidifies Safaricom’s lead as the dominant telecom operator in the country, serving over 46 million customers and facilitating the majority of mobile money transactions via M-PESA. The licence is also presented against the backdrop of significant ownership changes involving Vodacom Group. A deal announced in December will raise Vodacom’s stake in Safaricom from 40% to 55%, providing it with majority control. Concurrently, the Kenyan government will reduce its share from 35% to 20%, selling about six billion shares and receiving an upfront payment of approximately US$311 million from Vodacom related to future dividends.
