Elon Musk shares thoughts on Starlink’s entry into the Kenyan market

American billionaire Elon Musk has stirred discussions about the impact of Starlink’s introduction to the Kenyan market, hinting that its arrival has pushed local tech companies to elevate their standards. Musk, known for his outspoken social media posts, shared his views after Kenyan President William Ruto defended the decision to allow Starlink’s entry despite objections from local firms.

President Ruto, speaking on the sidelines of the United Nations General Assembly (UNGA), addressed concerns from local internet service providers (ISPs) about Starlink, which they viewed as a foreign entity threatening to dominate the market. However, Ruto emphasized that his administration supports open competition, believing it will lead to improved services and products for Kenyans.

Musk echoed Ruto’s perspective in a post on X (formerly Twitter), humorously noting that Starlink’s entry has led to better service offerings in Kenya. “As the President of Kenya says, Starlink pushes local competitors to offer improved services,” Musk stated, suggesting that the satellite-based internet provider has prompted existing players to innovate and enhance their services.

Local Resistance

During a business forum, President Ruto acknowledged the initial resistance from local ISPs, who feared that Starlink’s advanced technology and competitive pricing would diminish their market share. Despite this opposition, Ruto emphasized that competition is essential for transforming Kenya’s digital landscape, ensuring better value for consumers.

Businesses in Kenya have embraced Starlink as an alternative internet solution, particularly due to its reliance on satellites rather than traditional fibre optic cables. This satellite technology requires less ground infrastructure and offers more resilience, especially in rural and remote regions.

Currently, Kenya’s internet infrastructure is heavily dependent on submarine cables. Since the country’s first underwater cable connection in 2009 during President Mwai Kibaki’s tenure, six submarine cables have been in operation. However, these cables are susceptible to disruptions, which can result in service outages.

To meet the growing demand for faster, more reliable internet, the Kenyan government is constructing two more undersea cables. This expansion is expected to increase the country’s internet capacity, lower costs, and enhance competition, as Kenya moves into a new digital era marked by the diversification and improvement of internet services, with Starlink playing a key role in this transition.

Safaricom Denies Allegations of Halting M-Pesa Payments for Starlink Internet Over Competitive Concerns

Safaricom has dismissed rumors that it has removed M-Pesa as a payment option for Starlink internet services, assuring customers that the method is still available.

The confusion arose after a user on X (formerly Twitter), Gathogo B Mwangi, claimed that Safaricom had discontinued the option. Safaricom responded by clarifying, “Bwana Gathogo, this isn’t true. The option is still there. Please reach out if you encounter any problems.”

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Starlink, SpaceX’s satellite internet service, launched in Kenya in July 2023, targeting remote areas where traditional internet providers, such as Safaricom, have limited reach. Recently, Starlink introduced an option to rent its equipment for KSh 1,950 per month or purchase it for KSh 45,500, intensifying competition in the market.

To attract Kenyan customers, Starlink offers two main packages: a 50 GB data plan with speeds up to 200 Mbps for KSh 1,300 (with extra data costing KSh 20 per GB), and an unlimited data plan with speeds up to 100 Mbps for KSh 6,500 (USD 50) per month. This aggressive pricing strategy aims to capture a significant share of the local market.

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Kenya’s established internet providers like Safaricom, Zuku, Airtel, and Jamii Telecommunications (Faiba) offer various plans at different price points. Safaricom’s packages range from 10 Mbps for KSh 2,999 to 100 Mbps for KSh 12,499. Zuku offers speeds starting at 10 Mbps for KSh 2,799 up to 60 Mbps for KSh 5,999. Airtel provides 5G plans ranging from 10 Mbps at KSh 3,500 to 50 Mbps at KSh 7,500, while Faiba offers up to 140 Mbps for KSh 20,000.

Starlink’s entry has sparked a debate in Kenya, with many social media users favoring its service over traditional providers due to challenges like government-imposed internet disruptions during politically sensitive periods. Unlike cable-based networks, Starlink’s satellite system is unaffected by such outages.

Faced with this increased competition, Safaricom has called on the Communications Authority of Kenya (CA) to regulate satellite internet providers like Starlink and ensure they collaborate with local companies rather than operate independently. The CA has responded by saying it reviews regulatory concerns raised by service providers and takes action as needed.

With its competitive pricing and advanced technology, Starlink has introduced strong competition to Kenya’s internet market. This new dynamic may push all providers to enhance their services to better cater to consumer needs.