Kenya: Starlink Becomes Kenya's Eighth-Largest Internet Provider

27 January 2025
Daba Finance (Abidjan)

 

  • Starlink, Elon Musk's satellite internet company, has become Kenya's eighth-largest internet provider
  • Its rapid growth stems from its focus on underserved areas, offering high-speed internet to homes and businesses
  • This growth underscores the increasing demand for affordable, high-speed internet in Kenya

Starlink, Elon Musk's satellite internet company, has become Kenya's eighth-largest internet provider, surpassing established players like Liquid Telecommunications. With 16,746 subscribers and a 1.1% market share, Starlink has emerged as a leader in Kenya's satellite internet market, outpacing competitors such as Viasat, Indigo Telecom, and NTvsat, which have fewer than 300 subscribers each.

Its rapid growth stems from its focus on underserved areas, offering high-speed internet to homes and businesses without access to fixed broadband. Its dedicated "point of presence" facility in Nairobi, launched in December 2024, has enhanced service performance, reducing latency from 120 ms to 26 ms.

This growth underscores the increasing demand for affordable, high-speed internet in Kenya while highlighting the challenges regulators and competitors face in managing market shifts driven by satellite technology.

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Key Takeaways

Starlink's expansion has raised policy concerns and competitive tensions. Kenya's Communications Authority has proposed a tenfold increase in satellite internet licensing fees, from $12,302 to $115,331, alongside an annual 0.4% levy on gross turnover. The changes could benefit established ISPs like Safaricom and Airtel Kenya but may force smaller satellite providers out of the market. Starlink's pricing strategy, including discounts on installation kits, hardware rentals, and affordable data plans like a 50GB bundle for $10, has undercut rivals and driven its subscriber growth. Plans to launch satellites in 2025 that deliver internet directly to mobile devices may further disrupt Kenya's internet market by eliminating the need for costly hardware kits and enhancing accessibility for underserved areas.

Read the original article on Daba Finance.

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