Telecom jobs fall even as subscribers and revenues rise

Telecom jobs fall even as subscribers and revenues rise

The employment decline occurs despite a surge in mobile subscriptions and usage. Mobile SIM connections rose to 76.7 million by June 2025, from 68.9 million in June 2024, giving a penetration rate of 146.3 per cent.

Kenya’s telecommunications industry is witnessing a rare trend of job losses amid strong growth in subscribers and revenue, highlighting a shift in how the sector operates.

According to the Communications Authority of Kenya (CA), employment in mobile network operators (MNOs) and mobile virtual network operators (MVNOs) dropped by 2.4 per cent to 11,710 in the year ending June 2025, down from 11,997 the previous year.

This is the first decline since 2014, breaking 11 consecutive years of job growth, as companies balance rising costs with investments in advanced technologies such as 5G and digital financial services.

The drop in telco employment also mirrors the broader national trend of slow formal job creation, where only 78,600 positions were added last year compared to 700,000 in the informal sector.

“The number of persons employed by MNOs and MVNOs declined by 2.4 per cent to 11,710 as of June 30, 2025. The male-to-female ratio was 56:44 compared to 57:43 in June 2024,” said the CA in its latest report.

The employment decline occurs despite a surge in mobile subscriptions and usage. Mobile SIM connections rose to 76.7 million by June 2025, from 68.9 million in June 2024, giving a penetration rate of 146.3 per cent.

Mobile money subscriptions also jumped to 47.7 million, from 39.8 million a year earlier, reaching 91 per cent penetration. Many users hold multiple SIMs, pushing overall service uptake beyond the national population.

The last time telco jobs fell was in 2014, when operators consolidated after years of heavy investment in network infrastructure.

That period was followed by over a decade of growth, powered by mobile money and internet data services.

Current data suggest the industry is reaching a staffing peak, with technological efficiencies, automation, and digital channels allowing operators to serve more customers while employing fewer people, even as revenues continue to climb.

Figures from the CA show that employment in the mobile sub-sector first surpassed 10,000 in June 2023, plateaued over the following year, and eventually declined by last June.

The trend underscores a sector where workforce numbers no longer directly track revenue and subscriber growth, reflecting the impact of innovation and digital transformation on employment patterns.

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