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Starlink Surpasses 16,700 Subscribers, Reshaping Kenya’s Internet Market

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NAIROBI, Kenya – SpaceX’s Starlink is redefining Kenya’s internet landscape with its rapid growth, attracting over 16,700 subscribers by September 2024, according to the Communications Authority of Kenya (CA)

From a modest 405 subscribers in mid-2023 to surpassing 16,000, Starlink’s expansion has been nothing short of stellar.

Starlink now commands 1.1pc of Kenya’s fixed data subscription market, outperforming Liquid Telecommunications Kenya and Vijiji Connect. 

While Safaricom remains the dominant player with over 575,000 subscribers (36.6pc market share), followed by Jamii Telecommunications at 24.4pc and Wananchi Group at 16.8pc, Starlink’s rapid ascent is reshaping the competition.

This surge also triggered a massive 152.8pc increase in satellite internet capacity utilization, signaling growing demand for reliable connectivity. 

The CA attributes Starlink’s success to its aggressive customer acquisition campaigns, including slashing hardware prices and introducing rental options for its satellite kits.

For instance, in April 2024, Starlink halved its installation kit price from Sh89,000 to about Sh45,000 for a 30-day promotional window. 

By August, it further eased onboarding by launching a hardware rental plan, putting pressure on competitors to slash prices and boost speeds to stay relevant.

Starlink isn’t stopping at just low-cost hardware. The satellite giant has established a Nairobi-based ground facility, or “point of presence,” which enhances its network’s performance by reducing latency from 120 milliseconds to under 30 milliseconds.

Looking ahead, the company plans to revolutionize the market further by introducing direct-to-device satellite internet. 

This upcoming service will eliminate the need for hardware kits, reducing costs for customers while broadening accessibility.

The innovation has left competitors, including Safaricom, feeling the heat. The telco giant has raised concerns with regulators, citing risks to Kenya’s oversight of independent internet service providers like Starlink.

Despite its rapid success, Starlink and other satellite ISPs face new regulatory challenges. 

Earlier this month, the CA proposed high license fees for complex network equipment, like Starlink’s, renewable every 15 years. 

Additionally, an annual operating fee of 0.4pc of turnover could significantly impact smaller players in the industry, with costs potentially passed on to consumers.

While the guidelines aim to standardize the industry, they also underscore the challenges of balancing innovation with regulatory oversight in Kenya’s digital economy.

George Ndole
George Ndole
George is an experienced IT and multimedia professional with a passion for teaching and problem-solving. George leverages his keen eye for innovation to create practical solutions and share valuable knowledge through writing and collaboration in various projects. Dedicated to excellence and creativity, he continuously makes a positive impact in the tech industry.

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