This cost is often factored into the final charges that customers pay.
Under the new plan, the CA will reduce the current termination rate from 41 cents per minute to 30 cents per minute.
The reduction will not happen at once but will be implemented in phases over a four-year period.
This gradual approach is meant to give mobile service providers enough time to adjust their pricing models and operations.
The regulator says the decision followed a detailed market review. According to the CA, the main goal is to promote fair competition in the telecommunications sector while also encouraging continued investment in network infrastructure.
By lowering the charges that operators pay each other, the authority believes companies will have more room to offer affordable calling rates to their customers.
Industry players have in the past argued that high termination rates make cross-network calls more expensive.
In many cases, customers have preferred to call people on the same network to avoid higher costs.
The new rates are expected to reduce that gap and make it less costly to communicate across different networks.
The CA also noted that maintaining a balance is important. While consumers want lower prices, mobile operators need enough revenue to expand and maintain their networks.
Kenya’s telecommunications industry has grown rapidly over the years, with increased demand for voice, data, and digital services.
The regulator says the phased reduction will protect investments while still putting consumers first.
For ordinary Kenyans, the change could mean more affordable calls, especially for those who frequently contact family, friends, or business partners on different networks.
Small businesses, in particular, may benefit from lower communication expenses.