New Proposed Licensing Fees Could Raise Starlink Costs In Kenya
Starlink, a leading satellite internet service provider, could face higher costs in Kenya following a proposal by the Communications Authority of Kenya (CA) to significantly increase licensing fees for satellite internet service providers (ISPs).
Under the proposed regulations, the cost of a 15-year license would increase tenfold, from KSh 1.8 million ($12,302) to KSh 16.8 million ($115,331).
Additionally, the CA plans to introduce an annual levy of 0.4% of gross turnover for ISPs. This proposal comes as Starlink continues its rapid expansion in Kenya, driven by growing demand for high-speed internet, particularly in underserved and remote areas.
While the move aims to tighten regulatory oversight and ensure fair competition, the increased costs could pose challenges to smaller ISPs attempting to enter the market. Local ISPs may welcome the higher entry barriers as they face growing competition from global players like Starlink.
However, critics argue that the fee hike might hinder the broader rollout of affordable internet in rural Kenya.
“This change aims to ensure technology neutrality and allow investors to land signals using any technology,” the CA stated in its proposal.
The proposed regulations also seek to expand the scope of satellite ISPs in Kenya. If implemented, satellite providers like Starlink could operate terrestrial cables, telemetry systems, tracking facilities, and even engage in space research.
These provisions may pave the way for Starlink to establish ground stations in Kenya—a move previously stalled by regulatory hurdles.
“Licensees should be allowed to establish satellite systems, including hub facilities, and provide satellite services, provided they comply with the geographical scope principle (serving at least three counties in Kenya),” the CA added.
Starlink’s Rapid Growth and Competitive Landscape
Since its launch in Kenya in June 2023, Starlink has experienced rapid growth, boasting over 8,500 users as of December 2024—an increase of more than 1,000%. Its entry into the Kenyan market has intensified competition in the ISP sector, particularly with Safaricom, the country’s largest ISP.
Safaricom, which previously dominated the market with over 350,000 fixed internet users on its extensive fibre network, has responded aggressively to Starlink’s low-cost, high-speed offerings.
In July 2024, Safaricom even lobbied the CA to restrict satellite ISPs operating in multiple countries, citing unfair competition. In response to Starlink’s growing market share, Safaricom has doubled the speeds of its fibre internet packages, fueling a fierce battle for customers.
The proposed fee hike underscores the challenges of balancing regulatory oversight with the need to expand internet access in Kenya. While global players like Starlink bring innovation and affordable high-speed internet, local providers and underserved communities could bear the brunt of the increased costs.
As the CA moves forward with these proposals, the future of Kenya’s satellite internet landscape remains uncertain, with stakeholders keenly watching how the changes will impact accessibility, competition, and technological innovation.
