Elon Musk’s satellite internet firm, Starlink, has seen a significant surge in subscriptions in Kenya during its first year of operation. According to a report released by the Communications Authority of Kenya (CA), Starlink’s subscriptions increased by 1,955.3% in the 2023/24 financial year. The report shows that satellite subscriptions grew from 4,808 in March to 8,324 in June 2024.
This growth has been attributed to Starlink’s launch in Kenya last July, which has provided high-speed, low-latency broadband access, especially in areas where internet connectivity is unstable or absent. Despite the rapid growth, Safaricom still holds the largest market share in the satellite internet services market. However, Starlink has gained a notable share since its entry into the Kenyan market.
The company’s presence has expanded consumer choices and significantly boosted the country’s satellite internet capacity, which grew from 48.438 Gbps to 840.448 Gbps. Safaricom CEO Peter Ndegwa has hinted at a possible partnership with Starlink, stating, “From a satellite perspective, we have to partner with Starlink or other satellite providers to ensure that technology plays right through.” This comes after Safaricom had previously urged regulatory caution when granting independent licenses to satellite internet providers like Starlink. Starlink’s growth in Kenya is expected to continue, especially with the recent launch of the ‘Starlink Mini’, a cheaper and portable version of the standard kit.
The new mini package is priced at KSH 27,000 (USD 211), while the monthly service plans remain at KSH 1,300 (USD 10).
Starlink’s rapid rise in Kenya
This is a significant price drop from the standard kit, which costs KSH 45,000 (USD 350).
The rapid expansion of Starlink in Kenya highlights the increasing reliance on satellite internet services to meet growing connectivity needs, particularly in underserved areas where traditional infrastructure remains insufficient. This expansion could help bridge the digital divide, making high-speed internet accessible to more Kenyans than ever before. In its first full year of operation in Kenya, Starlink has captured a 0.5% share of the country’s internet market.
The firm has amassed a subscriber base of 8,063 users by the end of June 2024, propelling it into the top ten list of dominant internet service providers (ISPs) in the country. Safaricom maintained its firm grip on the market, growing marginally to control a 36.4% market share, followed by Jamii Telecommunications Limited (JTL) at 24% and Wananchi Group Limited (Zuku) at 17.5%. The demand for personalized and quality services is on the rise, with market disruption already evident as traditional players show signs of distress.
Safaricom has protested to the CA, asking it to review the policy of licensing independent ISPs, which was widely seen as an attempt to censor Starlink. However, President William Ruto emphasized that increased competition aligns with the state’s policy of deepening internet penetration and encouraging market competition. Starlink’s ability to deliver high-speed, low-latency internet to remote and previously underserved areas is a major strength against its competitors.
The company has adjusted its operations model to attract a wider subscriber base, introducing a rental plan for the installation hardware kit and announcing plans to launch new satellites capable of delivering internet directly to subscribers’ mobile devices without the need for a hardware kit starting next year.
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