Starlink’s Growth Slows as Competition Heats Up in Kenya’s ISP Market

Starlink’s satellite internet subscriptions in Kenya have taken a slight hit, now holding just 0.9 per cent of the market.

According to the Communications Authority’s report for the first quarter of 2025, satellite internet users dropped by nearly 10 per cent to 17,475, mainly because fewer people signed up for Starlink’s service.

Still, Starlink, owned by Elon Musk, managed to secure the eighth spot among Kenya’s top 10 internet providers, outperforming companies like Liquid Telecommunications Kenya and Vijiji Connect Ltd.

Meanwhile, satellite capacity actually grew from 34.14 Gbps to 45.29 Gbps thanks to demand for Starlink’s service. At the top of the market, Safaricom remains the leader with 678,118 data subscribers, accounting for 36.5% of users.

Jamii Telecommunications Ltd follows with 418,309 subscribers (22.5 per cent), and Wananchi Group Ltd holds 267,812 subscribers (14.4 per cent).

Since launching in Kenya in 2023, Starlink’s satellite internet has been known for offering competitive prices and high speeds that challenge traditional fibre-optic providers like Safaricom. It quickly attracted many users and rose to become the country’s tenth-largest internet service provider.

However, the cost of Starlink’s hardware initially kept many potential customers away. The equipment first sold for Ksh 74,000 but was later reduced to Ksh 39,500, and then further to Ksh 29,000.

Even at these prices, the upfront cost was still a barrier for many Kenyans. To make things easier, Starlink introduced a rental plan, where customers pay a one-time activation fee of Ksh 2,700 and a monthly rental fee of Ksh 1,950. Internet plans start at Ksh 1,300 per month for 50 GB, with speeds up to 200 Mbps.

Safaricom has expressed concerns about Starlink’s rapid growth. The telco asked the government to reconsider issuing licenses to satellite internet providers, warning of potential illegal connections and interference with mobile networks.

“We propose that the CA instead consider mandating the satellite service providers to only operate in Kenya, subject to such providers establishing an agreement with an existing local licensee,” Safaricom said.

While the Communications Authority hasn’t publicly commented on this, President William Ruto praised Starlink’s arrival, saying it has pushed other providers to improve their services.

“I have my CEO for Safaricom, sometimes he’s not very happy with me for bringing other characters like Elon Musk and others into the space. I keep encouraging Peter that competition makes you keep ahead and he’s been doing pretty well. I must admit, he’s really upped his game,” Ruto said in September 2024.