Consumers in Kenya will soon enjoy lower calling rates following a decision by the Communications Authority of Kenya (CA) to reduce Mobile Termination Rates (MTRs) and Fixed Termination Rates (FTRs).

The new MTRs and FTRs, which will take effect from March 1, 2024, will be capped at Sh0.41 per minute, down from the current Sh0.58 per minute. The SMS termination rate will remain unchanged at Sh0.05 per SMS.

MTRs and FTRs are the charges that mobile network operators (MNOs) charge each other to allow their customers to make calls to customers on other networks. Lowering these charges is expected to lead to lower calling rates for consumers.

"This decision is expected to have positive outcomes for both consumers and operators," said the CA in a press release. "Consumers will now enjoy access to a variety of affordable services across networks while operators will have more price flexibility in developing more affordable products."

The revised MTRs and FTRs will apply for a period of two years.

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The CA has also instructed all MNOs to vary their Interconnection Agreements in line with the Determination and file their Deeds of Variation with the Authority by February 1, 2024.