Communications authority of Kenya (CAK) has capped Mobile Termination Rates (MTRs) and Fixed Termination Rates (FTRs) at KES. 0.41 per minute with effect from March 1st, 2024. However, the termination rate of 0.05 per SMS will remain unchanged.
“The new rate is informed by the prevailing economic environment, ICT market dynamics and the need to strike a balance between the promotion of investment and the protection of consumers. Lower MTRs and FTRs mean lower calling rates for consumers,” said CAK in a press release.
MTR’s and FTR’s are the costs that operators charge each other in order to allow their customers to communicate using each other’s network. The rates are regulated by the CAK in order to ensure fair access and competition between mobile operators and to prevent price gouging.
The current MTR and FTR, set at KES. 0.58 per minute, have been a standard across all telecommunications service providers in the country. The new rates, will apply to local voice traffic within Kenya and are expected to bring about lower calling rates for consumers.
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The revised rates are set to be in effect for a two-year period, starting from March 1st, 2024. Prior to the implementation of the new rates, all operators are mandated to adjust their Interconnection Agreements in accordance with the regulator’s Determination and submit their Deeds of Variation to the Authority by February 1st, 2024.
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