Kenyan President William Ruto has backed US billionaire Elon Musk’s Starlink venture into Kenya amid a plea from Safaricom to reconsider licensing satellite internet providers.
Dr Ruto said at a US-Kenya Business and Investment Roundtable that Starlink’s entry is in line with the government’s policy of deepening internet penetration and encouraging competition in the market.
The US company, headed by one of the world’s richest men with a net worth of $237 billion (Sh30.6 trillion), is betting on cutting internet costs in a sector dominated by Safaricom, Jamie Telecommunications Ltd (JTL) and Zoku.
But Safaricom wants satellite operators to partner with existing ISPs rather than set up shop as independent operations, arguing that their direct entry into the market poses a risk to the quality of the mobile network.
“We are trying to expand the digital footprint across the country,” Dr Ruto said at the meeting held on the sidelines of the ongoing UN General Assembly in New York on Monday.
“And that has its own competitive issues,” he added during the meeting, which was attended by Kenya’s top CEOs, including Safaricom’s Peter Ndegwa. “I know I have a Safaricom CEO here, and sometimes he’s not happy with me because I’ve brought other people like Elon Musk and others into the space.”
“But I keep encouraging Peter (Safaricom CEO) that competition keeps you ahead, and he has done very well, I must admit, he has really raised his game.”
This is Dr Ruto’s first public support for Musk’s company since Safaricom asked the Kenya Communications Authority in July to re-evaluate its decision to grant separate licenses to satellite providers, warning that such an arrangement could allow illegal communications and harmful interference with mobile networks.
Mr Musk supported President Ruto in his attack on Safaricom.
“As Kenya’s president says, Starlink is pushing local competitors to offer better services,” the billionaire said in a post on X, formerly known as Twitter.
Safaricom wants satellite service providers to act as infrastructure providers while granting the operating license to existing mobile network operators (MNOs).
The government owns a 35% stake in Safaricom and has received N17 billion in dividends from the telecoms company – a position that some analysts believe will persuade the state to offer protection to the Nairobi Securities Exchange-listed company.
At the same prices, Safaricom’s home fibre customers will now be able to access 15Mbps (megabits per second) up from 10Mbps at Sh2,999; 30Mbps up from Sh20; 80Mbps up from Sh40; and 500Mbps up from 100Mbps.
The telco also introduced a higher speed package of 1,000Mbps from the previous maximum of 100Mbps in response to Starlink, which has shaken the market since its entry into Kenya in July last year.
Kenya is among the few countries in Africa that have approved the Starlink project. Other countries include Nigeria, Rwanda, Mozambique, Malawi, Zambia, Benin and Eswatini.
But Starlink’s entry into Africa has faced regulatory hurdles in some countries. Several African markets have classified Starlink as “illegal” in their territories. These include Cameroon, Côte d’Ivoire, South Africa, Senegal, and the Democratic Republic of the Congo.
Earlier this year, Cameroon ordered the seizure of Starlink equipment at ports because the provider had not obtained a license.
Part of the concern for governments in Africa is the need to control the content that is shared on Starlink.
In the case of South Africa, Mr Musk’s country of birth, Starlink was denied a license after failing to comply with requirements to cede a 30 percent stake to local residents.
Latest data from the Communications Authority of Kenya reveals that following Starlink’s entry into the Kenyan market, satellite internet usage has more than tripled to 4,808 subscriptions in March, compared to just 1,354 in September last year.
Safaricom currently controls a huge share of the fixed internet market, with about 37.4% of total subscribers, followed by Jamie Telecoms (Vaiba) and Wanaanshi Group (Zoko), which have about 23% and 19% market share respectively.
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