New Proposal Could Raise Starlink Costs In Kenya

Starlink prices in Kenya could go up following a proposal by the country’s Communications Authority (CA) for a substantial increase in licensing fees for satellite internet services providers (ISPs).

The proposed regulations would raise the cost of a 15-year license tenfold from $12,302 to $115,331 and introduce an annual levy of 0.4 percent of gross turnover. This comes when starlink is rapidly expanding its presence in Kenya, driven by a high demand for high-speed internet services.

With this move, the regulator is looking to tighten its oversight with raising the cost of entry and limit smaller companies looking to enter the market. For local ISPs, this move will be highly welcomed as it raises the bar for satellite competitors. However, the increased costs could hinder the growth of smaller internet firms and slow the expansion of high-speed internet access in underserved and remote areas.

“This change aims to ensure technology neutrality and allow investors to land signals using any technology,” the CA stated.

In addition to the license fee increase, the regulator’s proposal also seeks to expand the scope of satellite ISPs. Under the new guidelines, satellite providers would be allowed to operate terrestrial cables, telemetry systems, tracking facilities, and even engage in space research. This could open the door for Starlink to establish ground stations in Kenya — a move that has been delayed previously due to regulatory challenges.

“Licensees should be allowed to establish satellite systems, including hub facilities, and provide satellite services, provided they comply with the geographical scope principle (at least three counties in Kenya),” CA said.

Since launching in June 2023, Starlink has grown by over 1,000 percent, registering over 8,500 users as of December 31, 2024. Starlink’s Kenyan expansion has faced opposition from other ISPs.

Safaricom, which has been the biggest ISP in the country before Starlink’s entry, has caught itself in a scramble for customers. In July 2024, the telco actually asked the CA to block satellite ISPs with operations in other countries. Safaricom has over 350,000 fixed internet users via its extensive fibre cable network in the country.

Starlink’s low-cost, high-speed internet has sparked a fierce battle for customers. Safaricom, for instance, has doubled the speed of its fibre internet packages in response to Starlink’s growing presence.