CONNECTIVITY

Rising smartphone uptake creating new business opportunities in Kenya

By our African Marketing Confederation News Team | 2025

Latest Communications Authority report shows mobile phone penetration at 145%, with most now being smartphones.

Mobile subscriptions, mobile money usage, and digital connectivity continue to rise rapidly in Kenya, according to the latest ‘Sector Statistics Report’ released by the Communications Authority of Kenya. 

Photo: The Advocacy Project via Flickr

With mobile money powering financial inclusion in Kenya, subscriptions grew by 7.2% to 45.4- million, while registered mobile money agents grew by 5.5% to 417,000. Machine-to-machine (M2M) subscriptions, which are vital for the Internet of Things (IoT) and smart devices, also rose by 3.5% to nearly two million. 

 

These figures are important for marketers, retailers, banks and others in Kenya, given the rapid rise of the digital economy and digitally focused strategies. 

 

The report from the Communications Authority of Kenya covers the period January to March 2025. In it, the authority notes that the mobile penetration rate now sits at 145%, reflecting the increasing impact of mobile technology in the daily lives of ordinary Kenyans. 

 

Breaking down the mobile penetration rate, smartphone penetration stands at 80.8% and feature phone penetration at 62.2%. 

 

New business opportunities from e-commerce to e-learning 

 

“This shift towards more advanced devices is enabling Kenyans to access a wider range of digital services, from e-commerce to e-learning,” comments the authority. 

 

Analysing the report, the Kenyan Wall Street financial news website notes: “Mobile money has become the financial backbone of many rural households. From facilitating small-scale trade and remittances to enabling savings, credit, and insurance, mobile money platforms are bridging the gap left by sparse physical banking infrastructure.  

 

“In regions where banks and ATMs are few and far between, mobile money agents – whose numbers rose by 5.5% to 417,000 nationwide – provide critical access points for cash-in and cash-out transactions.” 

 

Kenyan Wall Street continues: “For smallholder farmers, traders and informal workers, mobile money offers a secure, convenient, and low-cost way to handle payments, receive proceeds from produce sales, and even access micro-loans.  

 

“The integration of mobile wallets with digital marketplaces has also enabled rural entrepreneurs to reach customers beyond their localities, supporting economic resilience and growth.” 

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.