Starlink, Elon Musk’s satellite internet company, has become Kenya’s eighth-largest internet service provider (ISP), overtaking established players like Liquid Telecommunications. According to the latest data from Kenya’s Communications Authority (CA), Starlink has grown its subscriber base to 16,746 users, capturing a 1.1% market share.
The company’s meteoric rise from being the tenth-largest ISP in mid-2024 highlights its dominance in Kenya’s satellite internet market. Competing providers like Viasat, Indigo Telecom, and NTvsat are struggling, with each serving fewer than 300 subscribers—a gap that could force them out of the market.
Rapid Growth Driven by Demand and Strategy
Starlink’s appeal lies in its ability to provide high-speed internet to underserved areas, including rural homes and businesses where fixed broadband is limited. In December 2024, the company enhanced its network performance by launching a “point of presence” facility in Nairobi, significantly reducing latency from 120 milliseconds (ms) to just 26 ms for Kenyan users.
To attract more subscribers, Starlink has adopted aggressive pricing strategies. Between April and May 2024, it halved the cost of its installation kit from $688 (KES 89,000) to $348 (KES 45,000). It also introduced a 50GB data plan for $10 (KES 1,300), undercutting rivals Airtel and Safaricom, whose comparable bundles cost $23 (KES 3,000) and $39 (KES 5,000), respectively.
In August 2024, Starlink rolled out a hardware rental option to reduce upfront costs. Looking ahead, the company plans to launch satellites in 2025 capable of delivering internet directly to mobile devices, eliminating the need for hardware kits altogether.
Regulatory Challenges Looming
Despite its success, Starlink faces growing scrutiny from Kenya’s telecom regulator, which has proposed a steep increase in fees for satellite internet providers. The new rules would raise the cost of a 15-year license from $12,302 to $115,331 and impose an annual 0.4% levy on gross turnover.
This regulatory shift, driven by concerns from established ISPs like Safaricom, Airtel Kenya, and Jamii Telecoms, could tilt the playing field in favor of local providers. Smaller satellite ISPs, already struggling with low subscriber numbers, may find it impossible to stay afloat under the proposed fee structure.
The Future of Kenya’s Internet Market
Starlink’s entry into Kenya has brought competition and innovation, offering faster and more affordable internet to consumers. However, the proposed regulatory changes could reshape the market dynamics, potentially stifling competition and limiting options for consumers.
As Starlink continues to expand, its ability to navigate Kenya’s regulatory landscape will be critical. Meanwhile, the debate over balancing innovation with fair competition is set to shape the future of the country’s telecommunications sector.
