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Kenya wants to readjust use of Universal Service Fund

Kenya wants to readjust use of Universal Service Fund

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Kenya wants to readjust use of Universal Service Fund

While digital transformation continues to accelerate in sub-Saharan Africa, a large part of the population does not yet use telecom services. According to the GSMA, mobile penetration in the region is 46%. 

In Kenya, the Universal Service Fund (USF) use cases will soon be reviewed. This is suggested by a bill to amend the Kenyan Communications Act of 2009 that the country’s National Assembly wants to pass.

The new bill is named “Kenya Information and Communications (Amendment) Bill, 2022”. It proposes that 60% of the USF be used to ensure the availability of telecom services to the entire population, including those in rural and low-income areas; 20% to ensure access to telecoms and advanced services in schools, libraries and rural health facilities; 10% to improve access to advanced telecom services nationwide and 10% to further other USF goals.

Under the Kenyan Communications Act of 2009, the Universal Service Fund aims to support widespread access to information and communication technology (ICT), promote capacity building and innovation in services ICT in the country. The readjustment of the use of the Fund comes in a context where thousands of Kenyans, especially those living in rural areas, still do not have access to telecom services.

Communications Authority of Kenya (CA) statistics for the first quarter of the financial year 2021/2022 show 64.7 million mobile subscribers. If this represents a mobile penetration of around 130%, the actual figures should be lower, because some people hold several SIM cards registered in their name.

“  A person who fails to use or uses the Universal Fund in a manner which does not further the purposes of the Fund commits an offense and is liable on conviction to a fine not exceeding two million shillings [16,300 USD, Editor’s note] or imprisonment for a term not exceeding two years or both  ,” reads the bill.

Source: Agence Ecofin

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25 November 2022

Myles Freedman

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