Starlink’s Aggressive Move in Kenya: A Game-Changer or a Threat to Local ISPs?.
In our previous exploration of Starlink’s entry into Kenya, we observed how Elon Musk’s satellite internet company shook up the local market. Barely 18 months since its launch in July 2023, Starlink has managed to disrupt the landscape traditionally dominated by fiber-optic providers like Safaricom, Telkom, Faiba, and Zuku. Offering competitive prices and unmatched speeds, Starlink has captured the attention of eager customers, creating a buzz that traditional internet service providers (ISPs) can no longer ignore.
Since then, Starlink’s influence has only grown. With an aggressive pricing strategy and rapid market penetration, the company has made internet access more enticing for many Kenyans. Initially, the high cost of the Starlink kit—set at Ksh.74,000—posed a barrier to entry. However, as retail partnerships with stores like Carrefour and online platforms like Jumia have expanded, the price has steadily decreased. Today, a Starlink kit can be bought for as little as Ksh.29,000. More recently, the introduction of a rental option, requiring a small activation fee and monthly rental payments, has lowered the barrier even further, allowing more users to experience high-speed satellite internet at a fraction of the upfront cost.
However, Starlink’s success has not gone unnoticed by local ISPs, particularly Safaricom. As the leading provider in Kenya’s fixed broadband sector, Safaricom has raised serious concerns about the impact of Starlink and other satellite providers on the existing network landscape. The company recently penned a letter to the Communications Authority of Kenya (CA), calling for a reconsideration of the decision to grant licenses to these new players. Safaricom argues that independent satellite providers could lead to illegal connections and harmful interference with existing mobile networks, which might degrade service quality and reduce socio-economic benefits for users.
Safaricom has even proposed that satellite service providers should only operate under agreements with established local licensees, effectively curbing the freedom of new entrants like Starlink. The tension is palpable, as Safaricom’s stance is not just about protecting its market share but also about ensuring what it calls “co-existence” without interference.
Despite this pushback, data from the Communications Authority of Kenya paints a clear picture: the demand for satellite internet is growing rapidly. The number of satellite internet users more than doubled in just a few months, from 1,354 in September 2023 to 2,933 by December 2023. Starlink’s presence has undoubtedly played a significant role in this surge, appealing to users frustrated with limited coverage and inconsistent speeds from traditional providers.
Yet, the road ahead for Starlink in Kenya is not without potential hurdles. As we’ve seen in other countries, regulatory challenges can pose significant threats to its operations. In Cameroon, for instance, Starlink faced severe pushback, with authorities ordering the seizure of equipment due to licensing issues. Could Kenya follow suit, or will the demand for better internet options push regulators to adapt to the new reality?
The Kenyan market is at a crossroads. With consumers hungry for better connectivity and ISPs feeling the pressure, the next few months will be critical. Will Starlink’s continued price cuts and innovative offers keep winning over customers? Or will the pushback from traditional ISPs and potential regulatory hurdles slow down its momentum?
Stay tuned as we continue to unpack the evolving story of Starlink in Kenya. In our next installment, we’ll dive deeper into the regulatory landscape and explore how other African countries are navigating Starlink’s entry into their markets. The conversation is far from over.
Article By Suzy Nyongesa.
