American satellite internet provider Starlink, led by Elon Musk, continues to stir controversy in Kenya’s internet service market. Entering the country in July 2023, Starlink quickly claimed a 0.5% market share, primarily by offering competitive pricing to challenge established players like Safaricom, Jamii Telecommunications, and Zuku. However, its aggressive pricing strategies have sparked legal battles and regulatory scrutiny.
The latest development sees Jamii Telecommunications filing a protest with the Communications Authority of Kenya (CA), accusing Starlink of predatory pricing. The protest, tabled in Kenya’s High Court, highlights Starlink’s June 2024 announcement of a standard 50GB plan for KSh 1,300 per month. Just months later, Musk introduced a new “Starlink Mini” package priced at half the original, which Jamii claims undermines fair competition.
This is not the first time Starlink has faced pushback in Kenya. In September 2024, non-governmental organisations like Kituo Cha Sheria advocated for fair competition and equitable access to satellite internet services. They argued that internet access is a fundamental socio-economic right and warned that monopolistic practices could stifle innovation and consumer benefits. Meanwhile, Safaricom, one of the market leaders, raised concerns over potential disruptions to mobile network quality and pushed for tighter regulations on satellite internet providers.
The controversy also touches on Kenya’s larger internet landscape. Critics argue that Starlink’s pricing strategy could destabilise the market, forcing smaller providers into a corner. On the flip side, consumer advocates emphasise that Starlink’s affordable plans significantly improve internet accessibility in underserved areas.
The High Court is set to address the allegations on November 25, 2024. Stakeholders, including regulatory bodies like the CA and the Competition Authority of Kenya (CAK), are expected to present a detailed inquiry into satellite internet regulations and their implications for the market.
As the debate unfolds, the case underscores the broader challenge of balancing affordability, competition, and innovation in Kenya’s rapidly evolving tech ecosystem. Whether Starlink’s approach will transform the market for better or exacerbate existing inequalities remains to be seen.
