How pay-as-you-use internet billing could change what Kenyans pay for data

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Kenyans could see changes in how they pay for internet services if Parliament approves a proposal requiring telecommunications providers to introduce consumption-based billing.

The proposal would allow internet customers to be charged according to the amount of data they actually consume, rather than relying solely on fixed monthly packages or plans based on internet speeds.

The issue came under discussion when telecommunications industry representatives appeared before the National Assembly Committee on Communication, Information and Innovation on Thursday, August 13, 2026.

Industry players warned that introducing mandatory pay-as-you-use billing could increase the cost of internet services because providers would need to invest in new technology and billing systems capable of accurately tracking customers’ data consumption.

What is pay-as-you-use internet billing?

Under the proposed model, customers would essentially pay according to how much data they use.

For example, instead of purchasing a fixed monthly package that provides internet access at a particular speed, a customer could be charged based on the number of megabytes or gigabytes consumed.

The model is already used in some telecommunications services, particularly for mobile data, but the proposal under consideration could expand consumption-based billing to other internet packages.

The proposal is contained in the Kenya Information and Communications (Amendment) Bill, 2025, which is currently being considered by Parliament.

Why internet providers are concerned

Telecommunications companies told MPs that making consumption-based billing compulsory would require significant investment in technology.

Providers would need systems capable of measuring customers’ data consumption accurately and generating bills based on every unit of data used.

The industry warned that this could involve investments in sophisticated billing infrastructure and Deep Packet Inspection (DPI) technology.

According to a statement issued after the parliamentary meeting, the additional costs could eventually be transferred to consumers through higher internet prices.

“Forcing all operators to adopt consumption-based billing would require significant investment in Deep Packet Inspection infrastructure and sophisticated billing systems capable of measuring every megabyte consumed,” Parliament said.

What could happen to unlimited internet packages?

One of the major concerns is the future of existing unlimited and speed-based internet packages.

Many households and businesses currently pay a fixed amount every month for a particular internet speed, allowing them to use the connection without being charged for every individual unit of data.

A mandatory consumption-based system could change how such packages are structured.

This could have implications for households with several users, people working from home, schools, businesses and other customers who depend on predictable monthly internet bills.

For heavy internet users, particularly those who regularly stream videos, attend online meetings, download large files or operate internet-based businesses, paying according to consumption could potentially result in higher monthly bills.

What internet providers want

Telecommunications companies have urged Parliament not to make consumption-based billing the only option available to consumers.

Instead, they want customers to retain the ability to choose between different pricing models, including fixed-price packages based on internet speeds.

Providers have also supported greater transparency so that customers can clearly see how much data they are consuming.

This would allow consumers to monitor their usage and make informed decisions without necessarily forcing every customer onto a pay-as-you-use system.

What Parliament is considering

The National Assembly’s Communication, Information and Innovation Committee is reviewing the proposed changes and listening to views from industry stakeholders before making recommendations to Parliament.

Dagoretti South MP John Kiarie said feedback from stakeholders would help the committee identify provisions that may need to be amended.

One possible approach would be to require providers to give customers clear information about their data consumption while allowing different billing models to continue operating.

This would give consumers greater visibility over their internet use without necessarily eliminating unlimited or fixed-price packages.

What the proposal could mean for Kenyans

If the proposal becomes law in its current form, the biggest question for consumers will be whether internet prices become more expensive.

For light users, paying strictly for the amount of data consumed could potentially provide an opportunity to spend less than they currently do on fixed packages.

However, heavy users could face higher bills if they are charged for every gigabyte consumed.

The outcome will therefore depend on how telecommunications companies structure their tariffs, what regulations Parliament ultimately approves and whether providers are allowed to maintain existing unlimited and speed-based packages.

For now, the proposal has not introduced a new pay-as-you-use internet charge for Kenyans. Parliament is still considering the legislation and stakeholder recommendations before deciding whether and how the proposed billing framework should be implemented.

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