Starlink, the Elon Musk-owned satellite internet service, has introduced a more affordable internet kit and a residential plan in Kenya, further intensifying competition in the nation’s internet services market. Just days after Safaricom, Kenya’s largest internet service provider (ISP), upgraded its fibre speeds in response to Starlink’s growing presence, the satellite company has launched the Starlink Mini, a new kit priced at $208.38 (KES 27,000), down from the KES 45,000 ($347.25) charged for its original kit introduced in July 2023. This new kit offers internet speeds of up to 100 Mbps, which could attract more cost-sensitive customers in Kenya’s competitive broadband market.
In addition to the new hardware, Starlink has also unveiled a residential Lite plan priced at $30.87 (KES 4,000) per month, a move aimed at making satellite internet more accessible across the country. This plan complements Starlink’s earlier introduction of a $15 monthly kit rental option in August 2023, further driving affordability for customers.
Safaricom’s Response: Faster Speeds and Enhanced Packages
As Starlink expands its market reach, Safaricom, which dominates the Kenyan broadband market with a 36.7% market share, has taken strategic steps to protect its position. On Monday, Safaricom boosted its fibre internet speeds for all its packages. For example, its 10 Mbps package was increased to 15 Mbps for KES 3,000 ($23), while customers on the 20 Mbps plan were upgraded to 30 Mbps at no extra cost. Safaricom also doubled speeds for customers on the 40 Mbps package and increased speeds fivefold for its 100 Mbps plan. Notably, Safaricom introduced a 1 Gbps package at KES 20,000 ($155), catering to heavy internet users.
These improvements reflect the telco’s attempt to match Starlink’s service offerings in terms of both speed and pricing. Safaricom’s fibre infrastructure spans 14,000 km across Kenya, serving around 400,000 customers, giving it a strong foothold in the market despite the rising competition.
Regulatory Pressure and Future Satellite Plans
In addition to improving its services, Safaricom has been lobbying the Communications Authority of Kenya (CA) to restrict satellite internet providers like Starlink, highlighting the potential disruption they pose to traditional ISPs. Safaricom, which has announced its intention to launch its own satellite internet services, is wary of Starlink’s rapid popularity and the threat it poses to its dominance in the market.
Starlink’s ability to offer internet access in remote areas where fibre cannot reach gives it a significant edge. This is especially appealing to rural users, who have been underserved by traditional ISPs due to the high cost of extending fibre networks to remote locations. In contrast, Starlink’s satellite system can provide internet access directly via low-orbit satellites, bypassing the need for extensive physical infrastructure.
The Future of Internet Competition in Kenya
As Kenya’s internet market continues to grow, the battle between satellite and fibre-based ISPs is set to intensify. Starlink’s affordable kits and lower subscription rates will likely attract a significant portion of the population, especially those in rural areas or those looking for more affordable alternatives to Safaricom’s services. However, Safaricom’s deep-rooted infrastructure, coupled with its plans to enter the satellite space, suggests that the ISP is not ready to concede its position anytime soon.
Both Starlink and Safaricom are playing an important role in expanding Kenya’s internet coverage and driving down prices. With Starlink introducing satellite-based alternatives and Safaricom enhancing its fibre-optic network, consumers are set to benefit from improved services and competitive pricing.
Kenya’s growing internet market will be shaped by the outcomes of this competition, with each provider striving to offer the best combination of price, speed, and coverage. The coming months will determine how the introduction of Starlink’s new kit and affordable plans will impact the long-term landscape of internet service provision in the country.
In the face of these developments, Kenya’s internet users are poised to experience faster and more affordable internet, marking a significant leap forward in the nation’s digital infrastructure.