Starlink becomes Kenya’s 8th largest ISP amid growing regulatory concerns

Starlink has become Kenya’s eighth-largest internet provider, surpassing established players like Liquid Telecommunications. The Elon Musk-owned company has grown its subscriber base to 16,746 subscribers and gained a 1.1% market, according to the latest data from Kenya’s Communications Authority (CA).

Starlink’s growth, from the tenth largest ISP in June 2024, suggests that the company has dominated Kenya’s satellite internet market. Other satellite ISPs including Viasat, Indigo Telecom, and NTvsat have less than 300 subscribers and may be forced to exit the market.

Starlink’s rapid growth drives demand for high-speed internet in Kenya, especially for homes and businesses that are not served by fixed broadband. However, Starlink’s growth has raised some policy concerns.

Kenya’s telecom regulator has proposed a tenfold increase in charges for satellite internet providers. The move comes amid growing concerns from rival ISPs led by Safaricom, Airtel Kenya and Jamii Telecoms, about Starlink’s fast rise.

The proposed regulations would increase the cost of a 15-year license from $12,302 to $115,331 and introduce an annual 0.4% levy on gross turnover. The tough rules could favour established ISPs but hurt smaller players. Satellite ISPs like Viasat and NTvsat may struggle with the higher costs and slow expansion in remote areas. They may also be forced out of the market as they currently have less than 300 subscribers. 

In December 2024, Starlink began routing African users through a dedicated ground facility in Nairobi, Kenya, known as a “point of presence,” where its space-based network connects to terrestrial internet infrastructure. Starlink users say this upgrade has improved performance, with average latency for users in Kenya dropping from 120 milliseconds (ms) to just 26 ms. 

Since April 2024, Starlink has been offering its customers several perks, including a 30-day promotion between April and May 2024 that cut the installation kit price from $688 (KES 89,000) to about $348 (KES 45,000). The firm has overhauled its pricing model to attract more subscribers. For instance, Starlink launched a 50GB data plan for $10 (KES 1,300), undercutting Airtel’s $23 (KES 3,000) and Safaricom’s $39 (KES 5,000) bundles. 

In August 2024, the company introduced a hardware rental plan to reduce entry costs. Starlink plans to launch satellites in 2025 that will deliver the internet directly to mobile devices and eliminate the need for hardware kits.