Elon Musk’s Starlink shakes up Kenya’s internet market, but can it win the long game?

Local internet firms—including industry giants Safaricom and Airtel—have pushed regulators to level the playing field, prompting the CA to propose dramatic fee hikes for satellite operators

In December 2024, the company launched a Nairobi ground station, cutting latency from 120 to 26 milliseconds. Photo/ Courtesy

In just six months, Elon Musk’s satellite internet provider, Starlink, has leapfrogged some of Kenya’s long-established internet firms, carving out a foothold in a market long dominated by fiber and mobile broadband giants.

The satellite company, a subsidiary of Musk’s SpaceX, now ranks as Kenya’s seventh-largest internet service provider, according to new data from the Communications Authority of Kenya (CA). With 19,146 active subscribers—up from 16,786 three months earlier—Starlink has overtaken local rivals like Liquid Telecommunications Kenya and Dimension Data, marking a striking shift in the country’s broadband landscape.

Yet, its rise is as contentious as it is rapid.

Starlink’s expansion has sparked backlash from Kenya’s legacy internet providers, which argue that the satellite company is playing by a different set of rules. Unlike its competitors, which invest heavily in terrestrial infrastructure, Starlink’s global satellite network allows it to bypass much of the physical and regulatory red tape.

Local internet firms—including industry giants Safaricom and Airtel—have pushed regulators to level the playing field, prompting the CA to propose dramatic fee hikes for satellite operators.

The regulator is now considering raising Starlink’s license fee from $12,302 to $115,331—a nearly tenfold increase—while imposing a 0.4% levy on annual revenues. The proposed changes could test Starlink’s aggressive expansion strategy and determine whether its breakneck growth is sustainable in a country where cost remains a critical factor in internet adoption.

Starlink’s appeal lies in its ability to provide high-speed internet in remote and underserved areas, where Kenya’s fiber networks and fixed wireless services remain patchy. Its presence has already eclipsed that of rival satellite providers, which, combined, serve just 257 customers.

To accelerate adoption, Starlink has deployed an aggressive pricing strategy. In December, the company launched a Nairobi ground station, slashing latency from 120 milliseconds to just 26 milliseconds—enhancing internet speed and reliability. It also introduced hardware rentals and a budget-friendly $10, 50GB data plan, positioning itself as a viable alternative to traditional telcos.

The company’s next move is even more disruptive. By 2025, Starlink plans to roll out satellites that will connect directly to mobile devices, eliminating the need for costly installation kits and intensifying competition with Kenya’s mobile operators. If successful, it could radically reshape the country’s telecom industry, where fiber and mobile broadband still dominate.

Yet, despite its impressive entry, Starlink remains a small player. It holds just 1.1% of the market, dwarfed by Safaricom’s 36.1% and Jamii Telecommunications’ 23.6%. To truly challenge Kenya’s internet giants, Starlink must do more than just grow—it must prove it can withstand regulatory pressure and sustain its momentum in a market that is both price-sensitive and fiercely competitive.

For now, the battle for Kenya’s internet market is only beginning.

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