The Communications Authority will spend Ksh1.2 billion to improve network coverage in underserved parts of Kenya.
The authority has said the project will cover Northeastern and Rift Valley parts of the country.
CA chair Ngene Gituku says the areas suffer from poor infrastructure, insecurity and poor network as most mobile operators consider these areas as economically unviable.
Despite significant growth in mobile phone penetration, huge large parts of Kenya remains outside mobile and internet reach, since they are sparsely populated making them commercially unviable.
Data from CA indicates that about 99.7 percent of the population is covered by 2G signals while 66.1 percent has access to 3G.
The study further shows that only 2,500 sub-locations have 100 per cent coverage of 3G and broadband while 1,244 sub-locations have no access to this service at all.
Gituku says these areas suffer from poor infrastructure, insecurity and poor network as most mobile operators consider these areas as economically unviable.
CA plans to use the funds from the Universal Service Fund to connect the affected areas.
Maji Moto ward in Narok South has become the first area to benefit from the USF funded project.
According to CA figures, the fund stood at Sh7.1 billion last year.
Out of this, the regulator says, Sh4.6 billion will be allocated for voice and broadband projects.