In a six-month period from June 2024 to December 2024, Kenya’s satellite internet subscribers grew by a massive 133.10%. Starlink’s launch of its high-speed internet in Kenya is the cause of this growth. Following the introduction of its services, the Elon Musk-owned company has grown to 1.1% of the market share.
The Communication Authority of Kenya (CA)’s latest sector report reveals that satellite internet adoption among Kenyan residents has grown from 8,324 to 19,403 in the referenced period.
It had a market share of 0.5 per cent as of June 30 of last year, with 96.9% of users on the satellite internet service experiencing high-speed internet between 100 Mbps and 1 Gbps.
Growth in this period was witnessed despite several challenges and countermeasures from competitors. In November of 2024, Starlink temporarily paused new subscriptions in Nairobi and surrounding areas due to network capacity constraints.
Bandwidth issues arose due to network saturation, caused by a significant influx of users and overwhelming demand, especially in the Nairobi metropolitan area.
Starlink’s response to the bandwidth issues was to suspend new residential and roaming plan availability in affected regions, including Thika, Kajiado, and Naivasha.
Safaricom’s Response to Starlink’s Growth
In direct response to Starlink’s entry into the Kenyan market, Safaricom, the country’s leading telecommunications company, aggressively lowered its internet prices to win back customers.
Specifically, they offered a 40 Mbps monthly fibre package for $38.61, a reduction from the standard $50.19, to entice former customers to reactivate their accounts.
Further, Safaricom advocated for regulatory oversight of satellite internet services, urging the CA to enforce a policy requiring satellite providers to establish partnerships with local networks before licensing, emphasizing the potential consequences for the domestic telecommunications market.
Read: Safaricom’s Feud With Starlink: A GoK Proxy War or a Business Gambit?
Starlink is also facing higher licensing costs. The CA is also proposing to merge the Submarine Cable Landing Rights (SCLR) license and the Satellite Landing Rights (SLR) license into a new “Landing Rights License.”
This merger will also see the ICT regulator raise the 15-year license fee, which is currently USD 12,500 (KES 1,618,750 million), to KES 15 million, representing an 826.64% increase.
Previously, the license was granted with a one-time fee; however, the new license will be valid for 15 years and then require renewal.
