On March 16 Pyramid research reported that mobile penetration in Kenya's telecom market will grow by 95 percent over the next five years.

The 22-page report provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies such as WiMax, IPTV, and VoIP.

This study provides a holistic view of the Kenyan communications market by analyzing key trends, evaluating near-term opportunities, and assessing upcoming risks factors.

With 29.28 million subscribers and a 67 percent mobile penetration rate expected by end of 2013, Kenya shows impressive growth rates with significant opportunity, notes Dearbhla McHenry, analyst at Pyramid Research and author of the report.

By the end of 2008, Kenya had more than 15.0 million mobile subscribers, with a mobile penetration rate of 39 percent. The subscriber base is expected to rise to 29.28 million, or 66.7 percent penetration, by year-end 2013, she added.

Increased competition is helping to fuel demand for mobile services in Kenya, McHenry says. Until 2008, the Kenyan mobile market was a duopoly consisting of Safaricom and Zain, she explains.

The entry to the market of Econet and Orange has greatly changed this situation and since then there has been a fierce price war with operators dropping tariffs and introducing new promotions in a big to gain a larger market share by making their services available at a more cost effective price.

Total revenue of Kenya's telecom market is forecast to grow by 42 percent from $1.39 billion in 2008 to $1.98 billion by 2013, with 78 percent of the total revenue to be generated by the mobile sector.