NAIROBI, Kenya – The entry of Elon Musk’s satellite internet service, Starlink, into Kenya has ignited a wave of disruption in the local internet market.
With Starlink offering competitive prices and significantly faster speeds, Kenyan consumers are embracing this new player, but local internet service providers (ISPs) are less than thrilled, calling for government intervention to protect their market share.
Starlink’s 50 GB data package, priced at Sh1,300, has sparked heated discussions.
Consumers have hailed it as a much-needed alternative to local options, which offer slower speeds and higher prices.
For instance, Starlink delivers speeds up to 220 Mbps at a rate of Sh26 per GB, a fraction of Kenya’s current average of Sh76.20 per GB.
In comparison, the country’s broadband speeds average just 9.78 Mbps, lagging significantly behind global and regional peers.
The impact has rattled local ISPs, with Safaricom, the largest telecom in Kenya, lobbying the Communications Authority (CA) to mandate that foreign satellite providers operate through local partnerships.
In a memo dated July 15, Safaricom urged the regulator to enforce a model that compels international ISPs to collaborate with local licensees, potentially shielding domestic companies from the full force of foreign competition.
However, consumers have voiced strong opposition to such protectionist measures, taking to social media to accuse Safaricom of stifling competition.
Experts like telecommunications analyst James Buluma argue that liberalization of the sector is long overdue.
“Affordable and reliable internet is key to economic growth, and any competition that drives down costs should be encouraged—provided new players adhere to the regulatory framework,” Buluma said.
He added that while Kenya boasts some of the most affordable internet rates in the world, its growth rate is sluggish compared to nations like Malawi and Rwanda, which are rapidly catching up.
Kenya’s average internet cost stands at $0.59 (Sh76.20) per GB, placing the country 57th globally in terms of affordability.
While this is an improvement from Sh112 in 2020, Kenya still trails countries like Malawi, where internet costs $0.38 (Sh49) per GB.
Fixed broadband, often seen as a more stable option, also remains expensive in Kenya, averaging $1.76 (Sh280.8) per Mbps of speed—over double the cost in South Africa and Egypt.
Although Kenya’s internet penetration rate has increased to 40.8% in 2024, the slow growth in accessibility and affordability remains a concern.
A recent report by the Nuvoni Centre for Innovation Research revealed that lower-middle-income households in Kenya spend around 15% of their monthly income on internet access, making it a significant financial burden.
The report also noted that while Kenyans spend an average of 3 hours and 35 minutes online daily, much of this time is dedicated to non-productive activities like social media, unlike South Africa, where internet usage is more economically driven.
The advent of Starlink, with its promise of lower costs and higher speeds, is seen by many as a step in the right direction, though concerns about affordability still persist.
While Starlink recently slashed its hardware costs from Sh89,000 to Sh39,500, Stanley Mageto of InternetBox argues that this is still out of reach for many Kenyans.
With Starlink offering competitive prices and significantly faster speeds, Kenyan consumers are embracing this new player, but local internet service providers (ISPs) are less than thrilled, calling for government intervention to protect their market share.
Starlink’s 50 GB data package, priced at Sh1,300, has sparked heated discussions.
Consumers have hailed it as a much-needed alternative to local options, which offer slower speeds and higher prices.
For instance, Starlink delivers speeds up to 220 Mbps at a rate of Sh26 per GB, a fraction of Kenya’s current average of Sh76.20 per GB.
In comparison, the country’s broadband speeds average just 9.78 Mbps, lagging significantly behind global and regional peers.
The impact has rattled local ISPs, with Safaricom, the largest telecom in Kenya, lobbying the Communications Authority (CA) to mandate that foreign satellite providers operate through local partnerships.
In a memo dated July 15, Safaricom urged the regulator to enforce a model that compels international ISPs to collaborate with local licensees, potentially shielding domestic companies from the full force of foreign competition.
However, consumers have voiced strong opposition to such protectionist measures, taking to social media to accuse Safaricom of stifling competition.
Experts like telecommunications analyst James Buluma argue that liberalization of the sector is long overdue.
“Affordable and reliable internet is key to economic growth, and any competition that drives down costs should be encouraged—provided new players adhere to the regulatory framework,” Buluma said.
He added that while Kenya boasts some of the most affordable internet rates in the world, its growth rate is sluggish compared to nations like Malawi and Rwanda, which are rapidly catching up.
Kenya’s average internet cost stands at $0.59 (Sh76.20) per GB, placing the country 57th globally in terms of affordability.
While this is an improvement from Sh112 in 2020, Kenya still trails countries like Malawi, where internet costs $0.38 (Sh49) per GB.
Fixed broadband, often seen as a more stable option, also remains expensive in Kenya, averaging $1.76 (Sh280.8) per Mbps of speed—over double the cost in South Africa and Egypt.
Although Kenya’s internet penetration rate has increased to 40.8% in 2024, the slow growth in accessibility and affordability remains a concern.
A recent report by the Nuvoni Centre for Innovation Research revealed that lower-middle-income households in Kenya spend around 15% of their monthly income on internet access, making it a significant financial burden.
The report also noted that while Kenyans spend an average of 3 hours and 35 minutes online daily, much of this time is dedicated to non-productive activities like social media, unlike South Africa, where internet usage is more economically driven.
The advent of Starlink, with its promise of lower costs and higher speeds, is seen by many as a step in the right direction, though concerns about affordability still persist.
While Starlink recently slashed its hardware costs from Sh89,000 to Sh39,500, Stanley Mageto of InternetBox argues that this is still out of reach for many Kenyans.
