A recent report from Kenya’s Communications Authority (CA) reveals that Starlink has emerged as the eighth-largest internet provider in the country, surpassing established players like Liquid Telecommunications. With a subscriber base of 16,746 and a 1.1% market share, the Elon Musk-owned company has significantly impacted the satellite internet market in Kenya.
Starlink’s impressive growth indicates its dominance in the satellite internet sector, climbing from the tenth largest ISP in June 2024. This growth has put pressure on other satellite ISPs like Viasat, Indigo Telecom, and NTvsat, which have fewer than 300 subscribers and may struggle to compete.
Starlink’s expansion is being driven by the increasing demand for high-speed internet in Kenya, especially in areas without fixed broadband coverage. However, this growth has raised concerns among regulators.
The telecom regulator in Kenya is considering a significant increase in charges for satellite internet providers, including Starlink, in response to complaints from rival ISPs like Safaricom, Airtel Kenya, and Jamii Telecoms regarding Starlink’s rapid ascent in the market.
The proposed regulations could lead to a tenfold increase in licensing fees, as well as the introduction of an annual levy on gross turnover. While these rules may benefit established ISPs, they could pose challenges for smaller players like Viasat and NTvsat, potentially forcing them out of the market due to increased costs and limited expansion opportunities.
Starlink has made strategic moves to enhance its services in Kenya, such as routing African users through a dedicated ground facility in Nairobi. This upgrade has significantly improved performance, with average latency dropping from 120 ms to 26 ms for users in Kenya.
Furthermore, Starlink has introduced various incentives for customers, including promotional pricing and new data plans to attract more subscribers. The company also launched a hardware rental plan to reduce entry costs and plans to deploy satellites in 2025 to provide direct internet access to mobile devices.