Starlink gains 0.5pc of Kenya’s internet market in first year

Billionaire Elon Musk’s Tesla satellite internet company, Starlink, captured a 0.5 percent share of Kenya’s internet market in its first full year of operation in the country, amassing a subscriber base totaling 8,063 users at the end of June this year, according to For new data.

New statistics from the Communications Authority of Kenya (CA) indicate that the growth rate has propelled the multinational into the top ten list of dominant Internet Service Providers (ISP) in the country, where it enjoys an equal market share with Vijiji Connect Limited, which began operations in 2020.

Safaricom maintained a strong grip on the market which grew marginally to command a market share of 36.4%, compared to 36.2% in June last year, followed by Jamii Tecommunication Limited (JTL), whose share rose to 24% from 23.7% last year.

On the other hand, Wananshi Group Co., Ltd. (Zoco) saw its market control shrink during this period to 17.5 percent from 21.6 percent last year.

“Safaricom Plc reported the largest market share at 36.4 per cent, followed by Jamii Tecommunication Ltd and Wananchi Group with 24.0 and 17.5 per cent respectively. Starlink Internet Services Kenya, which It was licensed earlier in the financial year to provide satellite internet services, holding a market share of 0.5 percent as of June 30, 2024.”

Starlink, an outgrowth of Musk’s space technology company SpaceX, switched on services within the domestic market in late July last year, setting the stage for what analysts described as “consequential industry disruption” that would intensify the battle for the rapidly expanding market. . Among the best Internet service providers.

Between April and June this year, CA notes that satellite internet capacity used in Kenya – which reflects the total internet access speed the technology can provide per second – rapidly increased to 840.448 gigabits per second (Gbps) compared to 48.438 Gbps Second in the previous quarter. A more than 16-fold jump, thanks to the uptake of Starlink services in the country.

“Satellite subscriptions maintained an upward trend following the launch of Starlink services during the year, with 96.9 percent of satellite customers subscribing to speeds between 100Mbps and 1Gbps,” the industry regulator notes.

Total satellite internet subscriptions in the country rose significantly during the year from 405 as of June last year to 8,324 at the end of the review period.

“This growth is attributable to the licensing and subsequent launch of Starlink Internet Services Kenya earlier in the financial year,” CA said.

This trend is expected to continue in the coming periods given that this technology provides high-speed, low-latency broadband connectivity, especially in areas where the Internet is currently unavailable or unreliable.

Disclosures made by the regulator point to a growing appetite among users for more personal attention and higher-quality services, with market turmoil already evident as traditional players begin to show signs of distress.

In August this year, market leader Safaricom wrote a letter of protest to the CA asking it to review its independent ISP licensing policy in what was widely seen as an attempt to censor Starlink.

The telecom company said in its petition that indiscriminate approvals of permits for these companies could lead to illegal communications and harmful interference in mobile networks.

In what was considered a veiled response by the government, President William Ruto, during his visit to the United States last month, It supported Starlink’s operations in the countryHe said that the company’s behavior is in line with the state’s policy aimed at deepening the spread of the Internet and encouraging competition in the market.

In a bid to avoid a price war with the multinational, Safaricom last month increased home fiber internet speeds by up to five times as part of efforts to protect revenues and guard its customer base.

One of Starlink’s key strengths against its competitors is its ability to provide high-speed, low-latency internet to remote and previously underserved areas, making it an ideal product for rural areas of Kenya where traditional internet services are limited or unreliable.

Since entering Kenya, Starlink has seen its operations model undergo a range of adjustments as part of its strategy to network a broader subscriber base.

Initially, the service proved to be a drawback due to its high cost, after it emerged that a person needed at least Sh100,000 for installation, the bulk of which was the purchase price of the hardware kit of Sh89,000.

The cost of the kit has since been reduced to Sh45,500.

In June this year, the multinational introduced a 50GB monthly data package at Sh1,300, less than half the price of Airtel, which charges Sh3,000 for a similar package.

On the other hand, Safaricom sells a 47GB data package that includes 2,500 talk minutes and 5,000 text messages for Sh5,000.

Last month, Starlink introduced a rental plan for the installation kit, where users pay a monthly price of Sh1,950 for a one-time purchase of Sh45,500, plus a Sh1,300 fee for a 50GB data plan. Or the monthly service fee of Sh6,500 for the unlimited internet package.

The company has also made plans to launch new satellites with the ability to connect and deliver the Internet directly to subscribers’ mobile devices without the need for a hardware array starting next year.