Netflix has announced changes in its pricing in Kenya by an average of 37%.
This is in line with a new trend adopted by the streaming provider that has seen it cut prices in other markets like Malaysia as well as the rest of Sub-Saharan Africa.
The new monthly rates in Kenya are as follows:
- Netflix Mobile – Kshs 200
- Netflix Basic – Kshs 300
- Netflix Standard – Kshs 700
- Netflix Premium – Kshs 1,100
The new rates are a breath of fresh air and reflect the competitiveness of the video streaming market.
Netflix last revised its prices in the country back in May 2021. Then, it reviewed its pricing upwards, citing the addition of Value Added Tax (VAT).
“Starting May 30, a value-added tax (VAT) will be included in your Netflix price,” Netflix wrote to subscribers then.
At the start of that year, the government had introduced a 1.5% Digital Service Tax on the gross transaction value. The International Monetary Fund (IMF), one of the country’s key lenders, has been lobbying to have the Digital Service Tax imposed on the services of various ̶U̶S̶-̶b̶a̶s̶e̶d̶ multinationals to be removed, a move that would impact Google, Apple Facebook, Netflix, Spotify and other foreign tech companies with an operational presence in Kenya.
In Kenya, Netflix competitors Showmax and Amazon Prime Video have historically offered lower rates with the former charging as little as Kshs 300 for its mobile-only tier while the latter charges a flat monthly fee of Kshs 560 (even for 4K content).
While there are, obviously, differences in the content offerings between the three video-on-demand platforms, the price disparities have never been lost on the end user.
While Netflix had managed to match Showmax with charges for its mobile tier at Kshs 300, it trailed the Multichoice-owned video streaming platform when it came to the standard tier.
Showmax has been charging Kshs 760 for that while those subscribing to Netflix’s standard tier in the country have had to part with Kshs 1,100 every month and be limited to just 1080p content, a sum that almost gives them 2 months on Amazon Prime. On top of a rich content catalogue that has often featured “can’t find anywhere” popular TV shows from HBO and others, Showmax offers access to select live local news channels at no added cost. Additionally, Showmax has a costlier “Pro” tier that offers live sports, making it competitive.
Subscribers of Netflix’s premium tier, which offers 4K HDR and multi-device streaming, have been paying a steep Kshs 1,450 for the privilege.
The revised charges are effective immediately. They will be visible to and apply for new subscriptions and should reflect to existing subscribers as their accounts fall due.
