Speaking at the Kenya Business and Investment Roundtable in New York, the President acknowledged that Safaricom CEO Peter Ndegwa may have concerns about the new entrant, but stressed that competition drives innovation.
“I have my CEO for Safaricom here, and sometimes he’s not happy with me for bringing in some other characters like Elon Musk,” Ruto said. “But competition keeps you ahead, and Peter has upped his game.”
Starlink, which launched in Kenya in July 2023, provides high-speed internet services to remote and underserved areas using a network of satellites in low Earth orbit.
This expansion challenges Safaricom’s long-standing dominance in Kenya’s telecom market, particularly in providing internet services.
In response to the heightened competition, Safaricom has made significant upgrades to its internet services.
The telco recently introduced an ultra-fast 1000 Mbps (gigabit per second) Platinum plan for home and business customers, making it the first in Kenya to offer gigabit speeds.
This move is seen as a direct counter to Starlink’s offering of internet speeds up to 200 Mbps for small businesses.
The rivalry between Safaricom and Starlink is expected to intensify as both companies expand their reach to meet the growing demand for high-speed connectivity.
Safaricom, besides enhancing its fibre and mobile data services with 4G and 5G, has also introduced a Family Share plan that integrates mobile voice, data, SMS, and home internet into one package.
Starlink’s satellite-based internet promises broader coverage, especially in rural regions where traditional telecom infrastructure struggles.
Meanwhile, Safaricom is leveraging its fiber network to cater to ultra-fast internet users, such as gamers, content creators, and those relying on virtual reality applications.