Starlink, the satellite internet provider owned by Elon Musk, has become Kenya's eighth-largest internet provider, surpassing established players like Liquid Telecommunications. According to the latest data from Kenya's Communications Authority (CA), Starlink has grown its subscriber base to 16,746, gaining a 1.1% market share in the country.

This rapid growth is a significant development, especially considering that Starlink was the tenth-largest ISP in June 2024. The company's dominance in Kenya's satellite internet market is evident, with other satellite ISPs like Viasat, Indigo Telecom, and NTvsat having less than 300 subscribers. This disparity may force smaller players to exit the market.

Starlink's growth has driven demand for high-speed internet in Kenya, particularly for homes and businesses not served by fixed broadband. However, the company's rapid rise has raised concerns among rival ISPs, led by Safaricom, Airtel Kenya, and Jamii Telecoms. These concerns have prompted Kenya's telecom regulator to propose a tenfold increase in charges for satellite internet providers.

The proposed regulations would increase the cost of a 15-year license from $12,302 to $115,331 and introduce an annual 0.4% levy on gross turnover. While these rules might favor established ISPs, they could hurt smaller players like Viasat and NTvsat, which may struggle with the higher costs and slow expansion in remote areas.

In December 2024, Starlink began routing African users through a dedicated ground facility in Nairobi, Kenya, known as a "point of presence," where its space-based network connects to terrestrial internet infrastructure. This upgrade has improved performance, with average latency for users in Kenya dropping from 120 milliseconds (ms) to just 26 ms.

Starlink has also been offering its customers several perks, including a 30-day promotion between April and May 2024 that cut the installation kit price from $688 (KES 89,000) to about $348 (KES 45,000). The firm has overhauled its pricing model to attract more subscribers, launching a 50GB data plan for $10 (KES 1,300), undercutting Airtel's $23 (KES 3,000) and Safaricom's $39 (KES 5,000) bundles.

In August 2024, the company introduced a hardware rental plan to reduce entry costs. Starlink plans to launch satellites in 2025 that will deliver the internet directly to mobile devices, eliminating the need for hardware kits. As the company continues to expand its services and improve performance, it will be interesting to see how the Kenyan market responds to these developments.

The implications of Starlink's growth in Kenya are far-reaching, with potential consequences for the country's telecommunications landscape. As the company continues to disrupt the market, it will be essential to monitor the regulatory environment and its impact on smaller players. One thing is certain – Starlink's presence in Kenya has brought much-needed competition to the market, driving innovation and better services for consumers.