The long debated mobile termination rate has been set at Shs. 1.60 by the Communications Commission of Kenya. The regulator had announced earlier that it planned to lower mobile termination rates (MTR) in July from the current Sh2.21  to  Sh1.44 a minute.  MTR is the amount of money an operator pays other operators when its subscribers call the other network.

The rate was arrived at as a compromise fee because Safaricom was calling for a high fee while the CCK and the other three operators were keen on Sh1.44. Information Permanent Secretary Bitange Ndemo said a meeting with all the operators resolved that the mobile termination rates would be lowered to Sh1.60 beginning July and that CCK conducts a fresh study that will determine the rates to be applied in the next review period.

CCK had pointed towards a rate lower than one shilling in later reviews which could witness cheaper calls for subscribers. However, all mobile operators have shown reluctance to lower tariffs based on lower termination rates with Orange mobile saying it would use the saved amount to cushion its operating cost.

CCK said during its open day that Safaricom earned Sh868.9 million from the rate in the three months to December with Airtel paying out Sh544.2 million. Essar Sh192.5 million and Telkom Kenya paying Sh21.3 million. The largest mobile operator, Safaricom claims it would not be able to recover total costs of ending calls as it ends 6 out of every 8 calls made in the country from all operators because of its large subscriber base.