Internet Service Providers (ISPs) in Kenya are licensed by the Communications Authority of Kenya (CA), typically under the Applications Service Provider (ASP) category if they deliver internet access over leased or third-party infrastructure, or under a Network Facilities Provider (NFP) tier if they also build and operate their own infrastructure (commonly Tier 3 for regional/county-level ISPs).
CA Fee Schedule Relevant to ISPs
| Licensing Route | Application Fee (KES) | Initial Operating Fee (KES) | Annual Operating Fee |
|---|---|---|---|
| ASP (service over leased infrastructure) | 5,000 | 100,000 | 0.4% of turnover or 80,000, whichever higher |
| NFP Tier 3 (own county-level infrastructure) | 5,000 | 200,000 | 0.4% of turnover or 160,000, whichever higher |
| NFP Tier 1/2 (national infrastructure) | 5,000 | 15,000,000 | 0.4% of turnover or 4,000,000 / 800,000, whichever higher |
Most small and mid-sized ISPs operating in Nairobi and other towns are licensed as ASPs, leasing fibre or wireless capacity from Tier 1/2 NFP holders, while larger regional ISPs that lay their own fibre may hold an NFP Tier 3 licence as well.
Requirements
- Registered Kenyan company with valid KRA PIN and tax compliance
- Technical rollout plan and network diagram
- Customer service and quality-of-service commitments
- Compliance with data protection and lawful interception obligations
Application Process
- Determine whether your service model is ASP-only or also requires an NFP tier
- Submit the relevant application form(s) to CA
- Pay the application fee(s) — KES 5,000 per licence category
- CA reviews technical and financial capacity
- Pay the applicable initial operating fee upon approval
- Remit annual operating fees thereafter based on turnover
Because “ISP” is not itself a distinct CA licence category, the actual fees a Kenyan internet provider pays depend entirely on whether it operates purely as a service reseller (ASP, ~KES 105,000 to start) or also builds its own last-mile infrastructure (NFP Tier 3, ~KES 205,000 to start).
