Mobile operator yU has welcomed the cut in mobile termination rates but said it has no plans to drop its calling rates in the near future.

The Communications Commission of Kenya on Monday reduced MTR which is the amount mobile phones companies pay to each other for calls across network to Sh1.44 from Sh2.21 per minute and backdated it to July.

"The slashing will boost the company as the company intends to invest the benefits in upgrading its network and network expansion in the country", said the country manager Madhur Taneja.

He was speaking at a partnership with the Association for the Physically Disabled of Kenya which will see yU fund, train and pay for the license of 267 kiosk shops countrywide which are strategically placed to market yU products.