In a bold move to counter the increasing competition from Starlink, Safaricom, Kenya’s largest mobile operator, has doubled the speeds of its home fibre internet packages. This strategic adjustment comes amid Starlink’s rapid expansion in Kenya’s broadband landscape, having already attracted over 4,000 customers since its launch in June 2023.
Safaricom’s upgraded internet plans now offer significantly faster speeds at competitive prices. The 10 megabits per second (Mbps) plan has been boosted to 15 Mbps for KES 3,000 ($23), while the 20 Mbps package now provides 30 Mbps. Even more dramatically, the 40 Mbps plan has jumped to 80 Mbps, and the premium 100 Mbps plan has skyrocketed to 500 Mbps, all for KES 12,500 ($97). In addition to these upgrades, Safaricom is also the first internet service provider (ISP) in Kenya to introduce gigabit speeds (1 Gbps) for KES 20,000 ($155), offering some of the fastest internet connections in the country.
New Family Bundles to Attract Households
Beyond faster speeds, Safaricom is rolling out a family share plan that integrates mobile voice, data, SMS, and home internet into a single package. This bundled service can be shared by up to five family members and offers a discount of up to 20% compared to purchasing individual plans separately. This new offering is aimed at retaining and attracting customers by providing more value at a lower cost, a crucial step in an increasingly competitive market.
Peter Ndegwa, CEO of Safaricom, highlighted the motivation behind these changes, stating, “We have enhanced our Home Internet speeds to meet the increasing demand and usage, providing reliable connectivity and enhanced value for our customers.” The company also plans to boost internet infrastructure by conducting estate clinics, expanding capacity in congested areas, and offering 4G and 5G internet options for homes not covered by its fibre network.
Business-Focused Internet Solutions
The telecommunications giant isn’t only targeting residential customers; it is also catering to businesses of all sizes. Safaricom has introduced dedicated internet plans for commercial use, ranging from a 15 Mbps shared package for micro-enterprises to a 100 Mbps shared plan for growing companies. These solutions are tailored to the needs of businesses that require reliable, high-speed internet to maintain operations and scale.
The Starlink Factor: A Growing Rival in Kenya’s Broadband Market
Safaricom’s recent adjustments are a direct response to Starlink’s entry into the Kenyan market in mid-2023. With speeds reaching up to 200 Mbps, Starlink’s satellite internet service costs KES 6,500 ($50) per month, offering a viable alternative to Safaricom’s offerings, especially in areas not covered by traditional fibre infrastructure. Starlink has also introduced a 50 GB package for KES 1,300 and a rental option for customers who cannot afford the KES 45,000 upfront cost for the satellite kit.
The arrival of Starlink has posed a significant challenge to Safaricom’s dominance in the broadband sector, particularly in underserved rural areas. Starlink’s satellite-based approach enables it to reach regions where laying fibre is either impractical or prohibitively expensive.
Safaricom Pushes Back Against Starlink and Other Satellite Providers
In a bid to protect its market share, Safaricom has asked the Communications Authority (CA) to block satellite internet providers like Starlink from operating independently in Kenya. On July 15, the CA supported Safaricom’s position, agreeing that concerns about satellite providers operating outside of Kenyan regulations were valid. This regulatory battle is part of a broader effort by Safaricom to safeguard its hold on the market, even as global players like Starlink enter the scene.