One year since its debut in Kenya, Starlink has ascended to become the nation’s tenth-largest internet service provider. According to the latest figures from the Communications Authority of Kenya (CA), the company has successfully acquired over 8,000 subscribers. The CA reported that as of June 30, 2024, Starlink Internet Services Kenya, which had been granted a license earlier in the fiscal year to offer satellite internet services, had captured a market share of 0.5 percent.
The rate at which Starlink has expanded its presence in Kenya is remarkable, marking one of the quickest growth spurts for an ISP in the country. This rapid ascent is largely attributed to the heightened interest from the public, particularly in areas that were previously underserved by other internet providers. In a market where it typically takes new ISPs several years to establish a foothold, Starlink’s swift rise is indicative of a significant demand for internet connectivity from consumers who had been largely ignored by the more established ISPs.
While the number of subscribers Starlink has may appear small when compared to industry giants like Safaricom and Jamii Telecommunications, which boast 545,000 and 360,000 subscribers respectively, Starlink shows considerable potential for expanding its customer base.
One of the key differentiators for Starlink is its reliance on satellite technology rather than terrestrial infrastructure. Unlike its competitors who use fiber and have to account for substantial infrastructure investments in their pricing strategies, Starlink operates through a constellation of over 6,000 satellites produced by its parent company, SpaceX. This satellite network enables Starlink to offer competitive pricing without the burden of heavy infrastructure costs.
Starlink’s most affordable internet plan is priced at KES 1,300 (approximately $10), offering speeds of up to 200 Mbps. Additionally, there is a residential package available for KES 4,000 (around $31), which provides speeds of up to 100 Mbps. These rates are competitively lower than similar plans offered by other ISPs in the market. However, Starlink’s competitive edge has also presented challenges within the Kenyan market. Competitors like Safaricom have lobbied the regulatory body to enforce more stringent entry requirements for independent satellite service operators.
In response to Starlink’s entry, Safaricom has also improved its fiber speeds to keep its customers from switching providers, and other ISPs have introduced discounts to stay competitive. Despite the competitive landscape, Safaricom has expressed a willingness to explore partnerships with companies such as Starlink. While specific details of such partnerships remain sparse, a potential collaboration could enable Starlink to leverage Safaricom’s well-established logistical network for better distribution capabilities.
