Availability of Mobile Virtual Network Operator Differentiated Services, Market Segments, and their Level of Utilisation in the Kenyan Market

Abstract

The global market size of Mobile Virtual Network Operators (MVNOs) in 2025 is a multibillion-dollar industry that provides flexible and cost-effective mobile services to millions of customers across the globe. The MVNO sector in Kenya has registered some success in the wireless mobile market, but it is not clear the extent to which they have embraced differentiated services, and distinct market segments that are core to their success. The aim of the study was to find the available MVNO differentiated services, market segments, and their level of utilisation in the Kenyan market through a qualitative method approach of literature review, interviews, observations, and content analysis from the Mobile Network Operator (MNO), MVNO sector, and the Communications Authority (CA) of Kenya. The study found that the MVNO market share in Kenya is low against global competitive values of (10%-50%). MNOs, MVNOs, and financial institutions partly targeted the same services and operated in the same market segments. The level of service differentiation and market segmentation is low, and so is the level of utilisation of differentiated services and market segments. Mobile money transfer services, and electronic airtime/data vending services in the financial and retail market segments, respectively, performed well and were gainfully utilised. Utilisation of differentiated services in the other market segments is insignificant. Key limitation was the lack of MVNO regulatory framework on which to critique the sector from a local perspective, and the lack of previous research to establish a baseline for new findings. The MVNO landscape, however, is virgin and promising.