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Internet Service Provider Licence Fees / Charges

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  • Author Nairobi Online
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Internet Service Provider Licence Fees / Charges
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

  1. Determine whether your service model is ASP-only or also requires an NFP tier
  2. Submit the relevant application form(s) to CA
  3. Pay the application fee(s) — KES 5,000 per licence category
  4. CA reviews technical and financial capacity
  5. Pay the applicable initial operating fee upon approval
  6. 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).

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