Starlink’s impressive growth in Kenya has been highlighted in the latest quarterly report from the Communications Authority of Kenya (CA). In less than two years since its debut, Starlink has amassed over 16,700 subscribers, a remarkable increase from just 405 in June 2023 and 4,808 in March 2024. This rapid rise places the satellite internet service firmly in competition with established ISPs, such as Liquid Telecommunications Kenya and Vijiji Connect.
In the period from July to September 2024, Starlink’s market share in the fixed data subscriptions market has reached 1.1%, surpassing notable local players. Despite this growth, Safaricom maintains the largest share of the market with over 575,000 subscribers, followed by Jamii Telecommunications and Wananchi Group, who hold 24.4% and 16.8% of the market, respectively.
Starlink’s surge is also evident in the increased demand for satellite internet services. The Communications Authority of Kenya reports a 104.7% rise in satellite internet subscriptions, largely attributed to Starlink’s customer acquisition campaigns. The company introduced an affordable rental plan for satellite equipment, making its services more accessible to consumers across Kenya.
Additionally, Starlink’s move to establish a ground facility in Nairobi is expected to enhance its network performance, reducing latency from around 120 milliseconds to under 30 milliseconds. The company also plans to introduce direct-to-device internet, which will eliminate the need for hardware kits, thereby reducing onboarding costs for new users.
In response to Starlink’s growth, the Communications Authority of Kenya has proposed new regulations, including a license fee of KSh 250,000 every 15 years for complex network equipment. This is expected to impact smaller players in the satellite internet market, as the costs may be passed on to consumers. The new regulatory guidelines also include an annual operating fee for satellite firms, charged at 0.4% of turnover, which could further affect the pricing dynamics in the industry.
Starlink’s rapid expansion is reshaping the satellite internet landscape in Kenya, challenging traditional ISPs and prompting regulatory changes. As the market evolves, it will be interesting to see how local players adapt to maintain their competitiveness while responding to the changing regulatory environment.
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