According to a study conducted by the Kenya National Bureau of Statistics, SMS texting in Kenya has been reduced by a whopping figure of 25.4 billion. The report released by the KNBS shows that SMSs declined from 68.1 Billion texts to 42.7 Billion texts in 2021. The KNBS attributes this sharp decline to the growth of instant messaging applications such as WhatsApp, Facebook Messenger and Instagram. More consumers have turned their backs away from the once-popular SMS and are now adopting the more digital, convenient, encrypted messaging platforms such as WhatsApp.
The decline in SMS has also been linked to a drop in promotional messages. The drop in promotional messages corresponded with the enactment of a data protection law and the appointment of Kenya’s first data commissioner Immaculate Kassait at the end of 2020. Data protection rules were implemented to restrict the state and the companies from handling personal information and prevent its use for market and research.
“The total domestic SMS sent declined by 37.2% to 42.7 Billion in 2021compared to an increase of 4.3% registered in 2020. The decline was partly attributed to the few promotional messages offered by the service providers and the ever-growing usage of instant message applications in the review period,” KNBS reported.
According to data from Truecaller, the caller identification platform, Kenya ranks third among countries that receive a high amount of spam messages, averaging 102 spam messages each month.
Recently, Safaricom announced that they would hide contact details when using Lipa na Mpesa. This measure is explicitly for curbing third parties from exploiting mobile users’ personal details. Payments on some merchants’ tills via Mpesa mobile money transfer led to the abuse of contact details which includes sending inappropriate message notifications from businesses marketing services and products or third parties selling data to advertisers. The data protection laws have made it difficult for companies to flood mobile phones with promotional messages.
Michael Mutiga appointed Safaricom’s business development chief (biznakenya.com)
The move from SMS’ to instant messages platform has both its merits and demerit for the telecommunications firms. As they feel the heat of underperforming text revenue income channels, the platforms are helping to promote their use of mobile and fiber internet services in this digital era. Text revenues have been on a drop for the past three years while mobile and fixed data revenues have taken a sharp increase and are the major source of revenue for Telcos.
The Communications Authority of Kenya data portrays that SMS messages contributed 18% of the total mobile service revenues in 2018 that was KSHs. 264.4 Billion, while the data income streams (Mobile and fixed) were at 20% and voice messages accounted for 39%.
In 2019, SMS’ contributions to the telecommunications revenue basket dropped to 7.1% while the mobile and fixed data rose to 21.9%. Telecommunications firms in 2019 made KSHs. 276.6 Billion from mobile services.