Starlink, the satellite-based internet provider from SpaceX, has solidified its position in Kenya’s internet market by becoming the country’s tenth-largest internet service provider (ISP) just a year after its launch.
New data from the Communications Authority of Kenya (CA) shows that as of June 2024, Starlink had accumulated a subscriber base of 8,063 users, representing 0.5% of the national internet market.
This achievement places Starlink on par with other established ISPs like Vijiji Connect, which entered the market in 2020.
A Changing Landscape in Kenya’s Internet Market
The Kenyan ISP market has seen a shift with Starlink’s entry. Traditional leaders such as Safaricom, which maintains a commanding 36.4% market share, and Jamii Telecommunications Limited (JTL) at 24%, continue to dominate.
Fixed Data Subscriptions by Operator
However, other players like Wananchi Group (Zuku) have experienced a decline in market share, dropping from 21.6% to 17.5%. Starlink’s 0.5% may seem modest, but its rapid rise hints at the growing influence of satellite internet in Kenya’s tech landscape.
Starlink’s Role in Expanding Satellite Internet Capacity
The most significant impact of Starlink’s presence has been the dramatic increase in Kenya’s satellite internet capacity.
Between April and June 2024, the utilised satellite internet capacity skyrocketed to 840.448 gigabits per second (Gbps), up from 48.438 Gbps in the previous quarter—a staggering 16-fold jump.
This surge is largely attributed to Starlink’s services, which have provided reliable internet to remote and underserved areas across Kenya.
Also Read: You can now rent the Starlink kit for KES 1,950 a month
According to CA, nearly 97% of satellite internet customers in Kenya now subscribe to speeds between 100 Mbps and 1 Gbps, further reflecting the high-quality service that Starlink offers.
The number of satellite internet subscriptions has grown exponentially, from 405 users in June 2023 to 8,324 by the same time in 2024, a growth spurred by Starlink’s affordable and high-speed connectivity options.
Market Disruption and Industry Response
Starlink’s entrance into Kenya has not gone unnoticed by the country’s leading ISPs. The surge in satellite internet subscriptions is seen as a potential disruptor to the status quo, with established players feeling the heat.
In August 2024, Safaricom raised concerns with the CA, urging a review of the policy on licensing independent ISPs.
The telco warned that indiscriminate licensing could lead to illegal connections and harmful interference with existing mobile networks.
However, the Kenyan government, led by President William Ruto, has shown support for Starlink. During a recent visit to the US, President Ruto praised Starlink’s role in expanding internet access in Kenya, aligning with the State’s objective of increasing internet penetration and fostering competition.
Price Wars and Competitive Strategies
In a move to retain its customer base and avoid a potential price war, Safaricom recently increased its home fibre internet speeds by up to five times in recent months.
However, Starlink’s key advantage lies in its ability to deliver high-speed, low-latency internet to remote areas where other ISPs struggle to provide reliable services.
One of the early challenges for Starlink in Kenya was its high installation cost. Initially, the hardware kit for Starlink services cost KES 89,000, making it inaccessible for many potential customers.
In response to market feedback, the company reduced the cost of the kit to KES 45,500 and introduced flexible payment options.
Users can now opt for a rental plan, paying KES 1,950 per month for the hardware in addition to a data plan of KES 1,300 for 50GB or KES 6,500 for unlimited internet access.
Future Prospects
Starlink’s future in Kenya looks promising, especially with plans to launch new satellites that will enable direct connections to mobile devices without the need for hardware kits.
This next phase of development could further disrupt Kenya’s ISP market, offering even more convenience and accessibility to users across the country.
As Starlink continues to expand its reach and service offerings, it is well-positioned to capture a larger share of Kenya’s growing demand for reliable, high-speed internet, particularly in rural areas where traditional ISPs face significant challenges.
