BUSINESS

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

Share
A Starlink receiver sits atop a house.
A Starlink receiver sits atop a house. PHOTO/@Art_Affa1r/X
Share

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.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
NEWS

Kenya Benchmarks Italy’s Security Model Ahead of Nairobi Metropolitan Police Unit Rollout

Kenya has intensified efforts to strengthen security management in Nairobi by benchmarking...

Energy and Petroleum Cabinet Secretary Opiyo Wandayi
NEWS

Govt Promises Lower Energy Costs as Manufacturers Push for Relief

The government has pledged to further reduce energy costs and strengthen collaboration...

CS Mutahi Kagwe agriculture with Embu Governor
BUSINESS

Kenya Lures Chinese Investors to Build Tea Processing Sector in the Country

Tea Board of Kenya Chief Executive Officer Willy Mutai has outlined a...

Migori Power Station
NEWS

New Migori Power Substation Ends Years of Supply Instability, Boosts Industrial Growth Prospects

A newly commissioned electricity substation in Migori County is expected to transform...