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Kenya cracks down on counterfeit mobile phones, routers, modems

Kenya raises the bar for telecom distributors
Esther Waititu, Safaricom's Chief Financial Services Officer
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Shalom,

Victoria from Techpoint here,

Here’s what I’ve got for you today:

  • Kenya cracks down on counterfeit mobile phones, routers, modems
  • Third senior Safaricom leader exits in months
  • PesaLink takes on M-Pesa with cheaper transfers

Kenya cracks down on counterfeit mobile phones, routers, modems

Communication Authority of Kenya
CA Kenya

Kenya is tightening the rules for companies that import and distribute telecom equipment. The Communications Authority of Kenya (CA) has introduced a mandatory Communications Equipment Distributor (CED) Licence, meaning any business that wants to import or wholesale products such as mobile phones, routers, modems, and other communications equipment must first obtain the new licence. The requirement took effect yesterday, July 21, 2026, and applies to both new entrants and existing businesses already operating in the market.

Kenyan regulators say the new licensing framework is designed to curb the influx of counterfeit and substandard telecom devices while strengthening the country’s communications infrastructure. Under the new rules, importers must ensure every product has a valid type approval certificate, submit IMEI numbers for mobile devices to the Kenya Revenue Authority, provide detailed invoices listing model numbers and quantities, and ensure Internet-connected devices meet IPv6 standards before they can be cleared through customs. Companies that fail to comply could face fines of up to KSh 1 million, imprisonment of up to three years, or both.

The new licence also comes with a cost. Businesses will pay a KSh 5,000 application fee, a KSh 250,000 licence fee that’s valid for 15 years, and an annual operating fee of 0.4% of gross turnover, subject to a minimum of KSh 120,000. Existing holders of Telecommunications Equipment Contractor (TEC) and vendor licences aren’t exempt either. If they intend to continue importing or distributing communications equipment, they’ll also need to obtain the new CED licence.

The announcement builds on reforms that have been in the works for some time. In 2025, the Communications Authority proposed a new licensing framework for telecom equipment distributors as part of a wider review of Kenya’s telecommunications market. Those proposals were eventually incorporated into the Revised Telecommunications Market Structure, published through Gazette Notice No. 3335 on March 6, 2026, before coming into force this week. The broader reforms have also introduced new licensing categories for satellite operators, infrastructure providers, and communications service companies as Kenya modernises its telecom regulatory framework.

For Kenya’s ICT industry, the changes signal a shift towards stricter oversight as demand for connected devices continues to grow. While the additional compliance requirements may increase costs for distributors in the short term, regulators believe the tougher rules will improve product quality, reduce counterfeit devices and create a more accountable supply chain. As Kenya accelerates its digital transformation, the government is making it clear that securing the communications ecosystem starts long before a device reaches a consumer’s hands.

Third senior Safaricom leader exits in months

Esther Waititu, Safaricom's Chief Financial Services Officer
Image source: Safaricom

Another top executive is leaving Safaricom, adding to a growing list of leadership changes at East Africa’s biggest telecom operator. Esther Masese Waititu, Safaricom’s Chief Financial Services Officer, will step down on July 31, 2026, after nearly three years with the company. Her departure comes just weeks after Vodacom completed its acquisition of a controlling 55% stake in Safaricom, making it the latest high-profile exit at a company that has seen several senior leaders move on in recent months.

Victoria Fakiya – Senior Writer

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Waititu leaves behind one of Safaricom’s most important businesses: M-PESA. Since joining the company in February 2023, she led the modernisation of the mobile money platform through the Fintech 2.0 migration, a cloud-native overhaul designed to make M-PESA more reliable and easier for developers to build on. During her tenure, Safaricom also expanded beyond payments into savings, insurance, investments, and wealth management, launching products such as Ziidi, which has attracted more than five million users, and Ziidi Trader, introduced in February 2026, allowing customers to buy and sell shares on the Nairobi Securities Exchange directly from M-PESA. Boniface Mungania will serve as interim Chief Financial Services Officer while the company searches for a permanent replacement.

Her resignation isn’t happening in isolation. In the past few months, Safaricom has announced several senior leadership departures. Sitoyo Lopokoiyit, who led M-PESA Africa for five years, left on March 31, 2026, to join Absa Group. More recently, Chief Strategy Officer Michael Mutiga announced he would leave to become CEO of Stanbic Bank Kenya and South Sudan from August 1, 2026. With Waititu now exiting as well, Safaricom has seen at least three senior executives depart within roughly four months, a noticeable period of transition for the telecom giant.

Naturally, the timing has sparked questions because it coincides with Vodacom completing its majority acquisition of Safaricom on June 30, 2026. However, there is currently no public evidence that the departures are connected to the ownership change. Waititu said she was leaving to pursue a new opportunity after building the financial services ecosystem she was hired to create, while Mutiga and Lopokoiyit are both moving into chief executive roles elsewhere. Leadership reshuffles are also common after major acquisitions, but neither Safaricom nor Vodacom has suggested that these exits were driven by the deal. For now, the overlap in timing is just that. Yeah, timing, not proof of a broader management shake-up.

Still, investors will be watching closely. Safaricom is entering a new phase under Vodacom’s majority ownership while continuing to scale M-PESA, grow its Ethiopian business and expand beyond traditional telecom services. The departure of experienced executives during such a pivotal period inevitably raises questions about succession planning and strategic continuity. Whether these exits represent routine career progression or the beginning of a wider leadership transition should become clearer over the coming months as the company fills key roles and outlines its long-term direction under its new ownership structure.

PesaLink takes on M-Pesa with cheaper transfers

Pesalink
Pesalink

Kenyan banks are turning up the heat on Safaricom’s M-Pesa by making it much cheaper to send money between bank accounts. More banks have signed up to PesaLink’s new pricing model, bringing the total to 19 banks and microfinance institutions. Under the revised charges, customers can now transfer up to KSh 1,000 for free, while transfers between KSh 1,001 and KES 999,999 attract a flat fee of just KSh 20. It’s a sharp departure from the old tiered pricing system, where fees could climb as high as KSh 250 depending on the amount being sent.

The price cuts matter because they strike at one of M-Pesa’s biggest advantages: affordable everyday transfers. For years, M-Pesa has dominated Kenya’s digital payments space thanks to its simplicity and predictable pricing. But with banks now offering free transfers for smaller amounts and capping larger transfers at KSh 20, PesaLink is positioning itself as a serious alternative for people moving money directly between bank accounts. The latest banks to join the initiative include Absa Bank Kenya and Stanbic Bank Kenya, following KCB, Diamond Trust Bank and Prime Bank, which adopted the lower fees in May 2026.

The move is about more than just lower fees. Kenyan banks are also trying to make bank transfers as easy as mobile money. Today, sending money through PesaLink often requires account numbers, but the platform plans to let users transfer money using simpler identifiers such as phone numbers or national ID numbers. That would remove one of the biggest pain points associated with bank transfers and make the experience feel much closer to using a mobile wallet. The campaign, branded “Tuma Direct na Mbao,” is being coordinated by PesaLink, the interbank payment switch owned by banks through the Kenya Bankers Association.

The latest announcement builds on a strategy that has been gathering momentum this year. In April and May 2026, banks such as Diamond Trust Bank and KCB became early adopters of the flat-fee model, signalling a coordinated effort to attract more users to PesaLink. The platform has also expanded beyond domestic payments. In February 2026, PesaLink integrated with the Pan-African Payment and Settlement System (PAPSS), allowing participating banks and mobile money providers to send cross-border payments in local currencies without routing transactions through the US dollar.

For Kenya’s payments ecosystem, this is shaping up to be one of the biggest competitive battles in years. M-Pesa still dominates digital payments, but banks are betting that lower prices, simpler transfers and stronger interoperability will convince more customers to move money through their accounts instead. Whether cheaper fees alone will change long-established habits remains to be seen, but one thing is clear: Kenya’s race to own the future of digital payments is becoming more competitive.

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Have a wonderful Wednesday!

Victoria Fakiya for Techpoint Africa

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