Telkom Kenya, the country’s third-largest telco by subscription, has encountered a significant loss of 2.1 million mobile customers over the past five years, resulting in a 61% decrease in its customer base. This decline contrasts sharply with the gains made by competitors Safaricom and Airtel Kenya during the same period.
Data from the Communications Authority of Kenya reveals that Telkom’s subscriber count dropped from 3.4 million in December 2019 to 1.3 million by December 2023, signalling challenges for the State-owned operator in maintaining competitiveness and revenue streams.
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Meanwhile, Airtel experienced the fastest customer growth rate, adding 5.3 million users to reach 19.4 million, and Safaricom increased its customer base by 8.7 million to reach 44.01 million.
Telkom faced its most substantial annual customer loss in the 12 months leading up to December 2023, shedding 1.8 million subscribers, partly due to a government crackdown on irregularly registered SIM cards. The telco’s struggles were further highlighted by the necessity to adapt to new regulations aimed at combating SIM fraud and enhancing data security.
The directives issued by the Communications Authority required telecommunication companies to carry out fresh registration of all mobile subscribers, emphasizing the importance of compliance and security measures in the industry. Irregularly registered SIM cards were identified as potential avenues for criminal activities such as money laundering, kidnappings, cybercrime, and mobile money fraud, prompting regulatory actions.
The genesis of these regulatory enhancements dates back to the 2013 Westgate Mall terrorist attack, where unregistered SIM cards were used by attackers for coordination, prompting stricter regulations and fines for non-compliance.
Telkom’s journey in adapting to these changes and retaining its customer base within a competitive telecommunications landscape underscores the dynamics and challenges faced by industry players in responding to regulatory shifts and market demands.
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