Starlink expands affordable internet in Kenya

Starlink has introduced a more affordable kit and monthly plan in Kenya, aiming to capture a larger share of the market

This launch comes shortly after Safaricom, Kenya’s leading internet service provider, boosted its fiber internet speeds to keep pace with the increasing competition.

The new Starlink Mini kit is now available at KES 27,000 (US$208.38), a notable drop from the original price of KES 45,000 (US$347.25) when it first launched in July 2023. This cost-effective kit provides speeds of up to 100Mbps, making it an appealing option for budget-conscious users looking for fast internet access.

Alongside the new hardware, Starlink has introduced its Residential Lite plan, priced at $30.87 per month. This aggressive pricing is expected to escalate the competition for subscribers throughout Kenya, where demand for affordable, high-speed internet is rising. Previously, Starlink had also rolled out a US$15 monthly rental plan for its kits, adding to its portfolio of affordable services.

In response to Starlink's entry, Safaricom has upgraded its internet offerings. The provider enhanced its 10Mbps package to 15Mbps while maintaining the same price of KES 3,000 ($23). Similarly, the 20Mbps plan has been upgraded to 30Mbps, and higher-tier plans saw significant boosts as well, with the 40Mbps plan doubling in speed and the 100Mbps package increasing fivefold. Additionally, Safaricom launched a new 1Gbps plan for heavy users, priced at KES 20,000 (US$155).

This rivalry between Starlink and Safaricom underscores the dynamic changes in Kenya's internet market. With a 36.7% market share and a 14,000 km fiber optic network serving around 400,000 customers, Safaricom is a dominant player. However, it has expressed concerns about satellite-based services like Starlink, even appealing to the Communication Authority of Kenya (CA) to restrict such entries.

Starlink's presence in Kenya poses a significant challenge to traditional ISPs. Its satellite technology offers broad coverage, making it particularly advantageous in rural or remote areas with limited or no terrestrial infrastructure. This could have a transformative effect in regions where internet connectivity has historically lagged.

The introduction of more affordable options by Starlink could accelerate the pace of internet adoption in Kenya, enabling greater access to online services, education, and digital economic opportunities.

With this growing competition, consumers are likely to see improved services and potentially lower prices. Established providers like Safaricom may feel the pressure to enhance their offerings and adopt more competitive pricing, which could lead to broader improvements in Kenya's internet ecosystem.

These shifts in Kenya's internet market are reflective of broader global trends. As satellite internet becomes more advanced and accessible, it presents both challenges and opportunities for traditional providers. The outcome of this competition in Kenya could influence internet accessibility and digital inclusion throughout Africa and other developing regions.