Starlink, Elon Musk’s satellite internet venture, has made significant inroads into Kenya’s fixed internet market.
Within just three months to September last year, Starlink’s market share grew from 0.5% to 1.1%, according to the latest sector statistics report by the Communications Authority of Kenya (CA).
This growth represents a doubling of its presence in a highly competitive market.
This surge propelled Starlink ahead of Liquid Telecommunications, which had maintained a 1% market share during the same period.
Starlink, which entered Kenya in July 2023, has challenged the dominance of traditional providers such as Safaricom, Wananchi Group, and Jamii Telecommunications. While these companies remain the leaders, Starlink’s entry is clearly unsettling the local players.
Innovative Pricing Drives Growth
Initially, Starlink’s high equipment cost created a barrier to entry. However, the introduction of a rent-a-kit option has been pivotal in attracting more subscribers.
For a one-off activation fee of KES 2,700 and a monthly rental charge of KES 1,950, users can access Starlink services.
Customers choose between a limited 50GB package at KES 1,300 or an unlimited package at KES 6,300—rates significantly lower than most competitors.
The Communications Authority notes that this pricing model and aggressive customer acquisition strategies were critical to Starlink’s growth.
Satellite internet subscriptions rose by 104.7% during the quarter, and utilized satellite capacity grew by 152.8%.
Traditional ISPs Feel the Pressure
The rise of Starlink has left local providers scrambling to adapt. By the end of September, Safaricom retained the largest fixed internet market share at 36.6%, up from 36.4% in June.
Other players saw declines—Wananchi dropped to 16.8% from 17.5%, while Poa Internet retained a 12.6% share.
In response, some providers reportedly lobbied the government to impose stricter regulations on satellite-based services.
The proposed regulations include increased license fees, from KES 1.6 million to KES 15 million, alongside a new annual charge of KES 4 million or 0.4% of gross turnover, whichever is higher.
Point of Presence in Nairobi Boosts Service Quality
To enhance its network, Starlink commissioned its first Point of Presence (PoP) in Nairobi in December 2024. This critical infrastructure has significantly reduced latency, dropping from 120 milliseconds to 26 milliseconds.
This move improves the user experience, especially for applications requiring low latency, such as video streaming and gaming.
High Demand in Certain Areas Leads to Service Suspension
The rapid growth has presented challenges. In late 2024, Starlink temporarily suspended new sign-ups in highly populated areas, including Nairobi, Kiambu, Machakos, Narok, Murang’a, and Nakuru.
The company cited network capacity limitations due to unprecedented demand.
This issue underscores a broader challenge of deploying enough satellites to meet user needs, a problem the firm acknowledges as it works to double its fleet within the next year.
Global and Local Outlook
Globally, Starlink continues to grow its network, aiming to launch 40,000 satellites in the coming years to ensure seamless global coverage.
Locally, Starlink is changing the internet landscape by providing high-speed connectivity, particularly in remote and underserved areas.
Its potential to democratize access to reliable internet has been widely noted, but it faces hurdles, including market resistance and capacity constraints.
Starlink’s Kenyan market entry demonstrates the demand for affordable and reliable satellite internet.
Despite regulatory challenges and growing pains, Starlink is poised to remain a major disruptor in Kenya’s internet sector.
