NAIROBI, Kenya- Kituo Cha Sheria, a non-governmental organization, filed a case in support of Elon Musk’s Starlink satellite internet services entering the Kenyan market.
The case centers around Safaricom’s lobbying efforts to block foreign satellite internet providers, including Starlink, from operating freely in the country.
Kituo Cha Sheria, represented by advocate Marc Chirchir, raised concerns about a letter Safaricom sent to the Communications Authority of Kenya (CA) on July 5.
In the letter, Safaricom urged the government to reconsider granting licenses to satellite providers, arguing that such services could harm Kenya’s existing internet service market.
Safaricom proposed that satellite providers like Starlink should only operate in Kenya through partnerships with local licensees, essentially restricting their independent entry into the market.
According to Kituo, these moves seem aimed at protecting Safaricom’s dominance rather than benefiting consumers. The advocacy group is now seeking a court order to prevent CA from acting on Safaricom’s recommendations.
The crux of the dispute lies in Starlink’s disruptive pricing model. Starlink, a satellite internet provider powered by SpaceX, entered the Kenyan market in July 2023, offering competitive pricing and high-speed internet, particularly in remote areas underserved by traditional ISPs.
Advocate Chirchir highlighted the stark contrast in costs between Starlink and Safaricom.
“Starlink offers 50 GB of data for KSh 1,300, while Safaricom charges KSh 6,000 for the same amount, a difference of 78pc,” he noted.
This price gap has caused what Kituo describes as “market shocks,” with established ISPs struggling to compete with Starlink’s consumer-friendly pricing.
For many Kenyans, particularly those in rural areas, Starlink has become a game-changer.
Its network of low-Earth orbit satellites provides high-speed internet with low latency, making it ideal for regions that traditional terrestrial networks have long ignored.
Recent promotions, including Starlink kit rentals for as low as KSh 1,950 per month, have further fueled competition .
This case brings into focus the tension between innovation and market protectionism. While Safaricom argues for stricter regulations to protect local players, Kituo Cha Sheria contends that consumers should benefit from open competition and lower prices.
The High Court’s decision could have far-reaching implications, not just for Safaricom and Starlink, but for Kenya’s broader internet economy.
Will the country embrace global players who can drive down prices, or will it protect local incumbents at the expense of consumer choice?
