Safaricom, a leading telecommunications provider in Kenya, has refuted allegations that it has blocked payments for Starlink services through its mobile money platform, M-PESA. The need for clarification arose after a user on the social media platform X (previously known as Twitter) made a claim that Safaricom had halted M-PESA payments for the satellite internet service owned by Elon Musk. The user’s post stated, “WAR IS WAR. Safaricom has cancelled the payment of STARLINK Internet via M-PESA.”
In response to this assertion, Safaricom issued a statement denying the claim and confirming that M-PESA continues to facilitate payments for Starlink services without interruption. The company reassured its customers that the payment channel remains operational and encouraged them to contact Safaricom directly should they experience any payment-related issues.
Prior to the controversial post on X, there were reports that Safaricom had suggested to the Communications Authority (CA) of Kenya that it should enforce a policy requiring satellite internet providers like Starlink to form partnerships with local licensees for operations within the country. Safaricom’s rationale was that independent operation of satellite providers without a local physical presence could pose regulatory and accountability challenges for the Kenyan government.
Furthermore, Safaricom recommended that the CA should evaluate potential risks and mandate that satellite internet services be offered under the auspices of a locally licensed entity, thereby ensuring regulatory control and accountability.
The Communications Authority has recognized Safaricom’s concerns and stated that it is within the rights of licensees or service providers to bring up any market-related issues with the ICT regulator. The CA assured that it examines such matters independently, within the scope of its regulatory powers, and takes appropriate action. The regulator emphasized that this process is standard as it aims to support the growth and evolution of the ICT sector in Kenya.
In Kenya, Starlink, which made its debut in July 2023, has now introduced an innovative rental option for its hardware kits. This initiative is aimed at making the service more accessible to individuals who may find the cost of outright purchase prohibitive.
In a strategic move to reclaim its market share, Safaricom has reportedly reduced its internet service prices. This price adjustment is seen as an effort to attract customers who may have migrated to Starlink for their internet needs.
For the financial year that concluded on March 31, 2024, Safaricom announced a remarkable profit of $1.07 billion. This figure not only surpassed the expectations of the market analysts but also exceeded the company’s own forecasted range. Additionally, Safaricom has disclosed plans to further expand its technological infrastructure by setting up 1,700 5G sites by July, highlighting its competitive edge over Airtel Kenya, which it has outpaced by 113 sites.
It is noteworthy that back in July 2023, Safaricom had expressed intentions to venture into the satellite internet market, positioning itself as a direct competitor to Starlink within Kenya.
While Starlink has faced regulatory hurdles and compliance issues in some African nations, the situation is evolving. Countries that initially imposed bans on the internet service provider have gradually shifted their stance, eventually granting the necessary licences and approvals for operation. A recent example of this shift is seen in Botswana, where, after an extensive period of regulatory negotiations lasting a year, Starlink was finally able to launch its services.
