Telkom Kenya, the country’s third-largest telecommunications company by subscription, has faced a notable decline in its customer base, losing 2.1 million mobile customers over the past five years. This decline represents a 61% decrease in its subscriber count, a stark contrast to the growth experienced by its competitors, Safaricom and Airtel Kenya, during the same period.
According to data from the Communications Authority of Kenya, Telkom’s subscriber count dropped from 3.4 million in December 2019 to 1.3 million by December 2023, highlighting significant challenges for the State-owned operator in maintaining competitiveness and revenue streams. In contrast, Airtel experienced the fastest customer growth rate, adding 5.3 million users to reach 19.4 million, while Safaricom increased its customer base by 8.7 million to reach 44.01 million.
Telkom’s most substantial annual customer loss occurred in the 12 months leading up to December 2023, during which it shed 1.8 million subscribers. This decline can be attributed in part to a government crackdown on irregularly registered SIM cards. Telkom has also had to adapt to new regulations aimed at combating SIM fraud and enhancing data security, further highlighting its challenges.
The Communications Authority’s directives required telecommunications companies to conduct fresh registration of all mobile subscribers, emphasizing compliance and security measures. 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. These regulatory enhancements were prompted by the 2013 Westgate Mall terrorist attack, where unregistered SIM cards were used by attackers for coordination, leading to stricter regulations and fines for non-compliance.
Telkom’s journey in adapting to these regulatory changes and retaining its customer base in a competitive telecommunications landscape underscores the dynamics and challenges faced by industry players in responding to regulatory shifts and market demands.
