Elon Musk's Starlink has made a remarkable entry into Kenya's internet service provider (ISP) market, becoming the country's seventh-largest ISP in just six months. According to the Communications Authority of Kenya (CA), Starlink now has 19,146 users, up from 16,786 three months earlier, capturing 1.1% of Kenya's internet market.

This rapid growth signals a significant shift in Kenya's competitive broadband market, where traditional fibre and fixed wireless networks have struggled to reach certain areas. Starlink's satellite broadband service has been able to fill this gap, offering a reliable and fast internet connection to users in rural and underserved areas.

The company's expansion has also boosted satellite internet adoption in Kenya, with other satellite providers, including Viasat, Indigo Telecom, and NTvsat, serving a combined total of just 257 customers. Starlink's aggressive pricing and infrastructure development have been key factors in its success, with the company launching a Nairobi ground station in December 2024, which cut latency from 120 to 26 milliseconds.

However, Starlink's rapid growth has not gone unnoticed by local ISPs, including Safaricom and Airtel Kenya, which argue that the company's expansion threatens to distort competition. In response, the CA plans to increase satellite licence fees from $12,302 to $115,331 and impose a 0.4% levy on annual turnover, measures that could slow Starlink's momentum.

Despite the pushback, Starlink is deepening its foothold in Kenya, with plans to deploy satellites that connect directly to mobile devices by 2025, bypassing hardware kits and intensifying competition with traditional telcos. The company has also introduced hardware rentals and a $10 50GB data plan, making its services more accessible to a wider range of users.

While Starlink's growth is impressive, it still trails far behind market leaders Safaricom and Jamii Telecommunications, which hold 36.1% and 23.6% of the market share, respectively. To seriously challenge Kenya's internet giants, Starlink will need to continue to innovate and expand its services.

The company's success in Kenya has significant implications for the broader African tech industry, where satellite technology is increasingly being seen as a key solution for bridging the digital divide. As Starlink continues to grow and expand its services, it will be interesting to see how the company's model is replicated in other African countries.