Ongoing battles of pricing between Kenya's telecommunications companies have reduced Kenya's rates to the lowest in Africa. According to statistics published by the country's ministry of communications, the average cost of a call in Kenya is Sh3.5 per minute, compared to Sh11 across East Africa. The governmet is attempting to intervene to end the price wars and has called on the companies to agree on a reduced rate for Kenyan customers. It has left analysts wondering how low the rates will end up. “We have been watching this for some time and it appears that it is starting to bottom out, but if the rates go any lower, it could hurt the industry because companies will be finding it difficult to maintain profits,” said John Mmemba, an ministry official in Nairobi. Airtel and Essar Telecom, charge even lower than the average, and with rates at Sh3 for calls across all networks, customers are happy. “It is great because I don't have to worry about spending a lot of money on calls, and it means I am making more calls to family and friends,” said Khalil, a 31-year-old independent web designer. That is the positive, companies' say. It is driving more people to make more calls, which one Essar official, who was not authorized to speak to the media, said was key to undercutting other companies. “We can handle the price drops because it is being overcome by the increase in overall usage,” the official said. Still, as the price wars continue, Telkom Kenya's Orange has gone even further on network to network pricing, giving customers on the network to call for only Sh2 per minute. BM
