Markets

Starlink Surpasses Liquid Telecom to Become Kenya’s 8th-Largest Internet Provider

The Elon Musk-led company has grown its subscriber base to 16,746 users, capturing 1.1% of the market share, according to the latest data from the Communications Authority of Kenya (CA).

Starlink has emerged as Kenya’s eighth-largest internet service provider, surpassing long-established players like Liquid Telecommunications.

The Elon Musk-led company has grown its subscriber base to 16,746 users, capturing 1.1% of the market share, according to the latest data from the Communications Authority of Kenya (CA).

Rising from its position as the 10th-largest ISP in June 2024, Starlink’s dominance in the satellite internet market is evident. Competing satellite ISPs such as Viasat, Indigo Telecom, and NTvsat, each with fewer than 300 subscribers, may struggle to remain viable in the competitive landscape.

Starlink’s rapid growth shows the rising demand for high-speed internet in underserved areas, particularly in remote regions where fixed broadband infrastructure is unavailable. However, the company’s success has raised policy concerns among regulators and competitors.

Regulatory Challenges Loom for Starlink and Smaller Satellite ISPs

In response to Starlink’s rapid expansion, Kenya’s telecom regulator has proposed a significant increase in charges for satellite internet providers. The proposed changes include raising the cost of a 15-year license from $12,302 to $115,331 and introducing a 0.4% annual levy on gross turnover.

These tough regulations could benefit larger ISPs like Safaricom, Airtel Kenya, and Jamii Telecoms while placing immense pressure on smaller satellite providers. Companies like Viasat and NTvsat, already struggling with low subscriber numbers, may be forced to exit the market.

In December 2024, Starlink enhanced its service by routing African users through a dedicated ground facility in Nairobi, known as a “point of presence.” This upgrade significantly improved performance, reducing average latency for Kenyan users from 120 milliseconds to just 26 milliseconds.

Since April 2024, Starlink has rolled out aggressive pricing strategies to attract more subscribers. These include:

  • A 30-day promotion that slashed the installation kit cost from $688 (KES 89,000) to $348 (KES 45,000).
  • A 50GB data plan priced at $10 (KES 1,300), significantly undercutting Airtel’s $23 (KES 3,000) and Safaricom’s $39 (KES 5,000) bundles.
  • A hardware rental option introduced in August 2024 to reduce entry costs further.

Future Plans: Satellite-to-Mobile Internet

Looking ahead, Starlink plans to launch new satellites in 2025 that will deliver internet directly to mobile devices, eliminating the need for hardware kits. This innovation is poised to disrupt the market further, making high-speed internet even more accessible across Kenya and beyond.

As Starlink continues to expand, its impact on Kenya’s internet market will remain a closely watched development, particularly as regulators weigh policy adjustments to level the playing field.

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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