Safaricom plans to give Starlink a run for its money in Kenya

The Kenyan internet market has been heating up since Starlink’s arrival. Safaricom, the country’s dominant telecom provider, has responded to Starlink’s competition by upgrading its internet speeds and introducing new packages.

The entry of Starlink into the Kenyan market has intensified competition with Safaricom, leading to price wars and regulatory challenges between the two companies. Safaricom has increased speeds for its existing packages and introduced new ones, while Starlink has offered attractive pricing and coverage options.

The Kenyan internet service provider even introduced a new ultra-fast 1000 Mbps package for KES 20,000 monthly. According to Birr Metrics, this makes it the fastest in the country.

Starlink has seen a significant increase in users in Kenya since it started, with the number of users growing from 1,354 to 4,808 by March 2024. However, this is still much smaller than Safaricom's 65% control of the Kenyan market, as reported by African Financials.

Reportedly, when Starlink wanted to begin operation in Kenya, it approached Safaricom for a partnership. Safaricom, however, declined the partnership, citing concerns about regulatory complexities associated with Starlink's international operations.

The proposal from Starlink came not long after Safaricom sent a statement to the Communications Authority (CA) regarding "satellite-based internet" service providers. In it, the company expressed concerns about the potential impact of Starlink on the Kenyan market, urging the Communications Authority of Kenya (CA) to exercise caution when granting independent licenses to satellite internet providers.

The CA has acknowledged Safaricom’s concerns and stated that it will independently examine any such issues within its mandate.

Although they've faced challenges, both companies have helped more people in Kenya get online. Starlink has made Safaricom work harder to provide better service, which is good for customers. As the market keeps changing, we'll see how this competition affects the future of the internet in Kenya and other African countries.