In a dramatic change of tune, Kenya’s telecommunications provider, Safaricom, now says it is open to a strategic partnership with Starlink, a recent entrant to Kenya’s growing internet market.
During an interview with Bloomberg in New York, Safaricom CEO Peter Ndegwa confirmed that discussions with the satellite internet firm owned by tech billionaire Elon Musk are ongoing.
“From a satellite perspective, we have to partner with Starlink or other satellite providers in the future to make sure that that technology plays right through,” he stated.
The new development comes weeks after Safaricom expressed reservations about Starlink’s entry into Kenya, expressing concerns about regulatory oversight. Safaricom currently dominates the internet market in Kenya, with a market share of 36%, ahead of Jamii Telecom and Zuku (Wananchi Group).
The partnership discussions between Safaricom and Starlink come at a time when Kenya’s internet market is growing rapidly. Safaricom has increased its fiber internet network to reach 14,000 kilometers, up from 10,880 in 2022.
Safaricom also introduced an ultra-fast 1000 Mbps platinum plan for its fiber customers, priced at Ksh.20,000 per month. The new package targets high-end residential customers and businesses.
Since its entry in Kenya last year, Starlink has quickly disrupted the internet market in Kenya, with data from the telecommunications regulator showing that the number of satellite internet users rose to 4,808 as of March 2024, down from 1,354 in September 2024.
Starlink has also discounted its prices in the past year, with Starlink’s standard kit going for Ksh.45,000, down from Ksh.74,000 when it entered the Kenyan market. Last week, Starlink unveiled the cheaper Starlink Mini kit, which will cost Ksh.27,000, with internet subscriptions starting from Ksh.1,300 per month.
Speaking during the US-Kenya Business and Investment Roundtable in New York, President Ruto defended his decision to allow Starlink in Kenya, saying that the increased competition is necessary to improve service quality.
“I have my CEO for Safaricom here; sometimes he is not happy with me for bringing in some other characters like Elon Musk,” he said.
Musk, who attended the UN General Assembly 2024, echoed Ruto’s sentiments, noting that Starlink Internet had spurred local internet service providers to enhance their services. “As the President of Kenya says, Starlink causes local competitors to provide better services,” Musk said.
The expected partnership between Safaricom and Starlink is expected to be a game-changer for Kenya’s telecommunications sector. Combining Safaricom’s extensive infrastructure across the country and Starlink’s satellite dominance is expected to provide unmatched internet services across the country.