Starlink Introduces Installment Payments In Kenya

Starlink, SpaceX’s satellite internet network, has introduced installment payment options for Kenyan subscribers. Under this new plan, customers pay a smaller upfront amount $52.80 (KES 6,750) plus activation and shipping fees, then spread the remaining cost over six months alongside regular subscription charges This makes the service more accessible for users who couldn’t afford the full hardware cost of $350– $380 (KES 45,000–KES 49,900).

Starlink entered Kenya in July 2023 and initially grew quickly, driven by its low‑earth orbit satellite technology, which promised high‑speed internet even in areas underserved by fibre and mobile networks. Between June 2024 and September 2024, the service had grown by an impressive 101.64per cent,  from 8,063 to 16,786 subscribers become the 8th largest ISP in the country, according to data from the Communications Authority of Kenya.

With speeds and coverage that appealed especially in rural and remote regions where traditional infrastructure was weak, many early adopters saw Starlink as a strong alternative to local broadband, particularly where fibre is expensive or absent.

Despite this growth, Starlink’s hardware cost remained a major challenge for many Kenyan customers. At launch, the Starlink kit was priced at about $350–$380, a steep upfront expense for many households and small businesses. To ease this, the company later introduced hardware rental options in Kenya, allowing users to rent the equipment for a monthly fee of around $15 (KES 1,950), plus a small activation charge, in an attempt to reduce the pressure of paying the full cost at once.

Even with those efforts, the overall price combining hardware and subscription was still significantly higher than many local alternatives. The most visible trouble for Starlink came in November 2024, when the company paused new subscriptions in key urban and peri‑urban regions such as Nairobi, Kiambu, Machakos, Kajiado, and Murang’a. Starlink cited network capacity constraints  essentially too many users trying to connect in these high‑demand areas.

The pause lasted about seven months and had clear consequences. Starlink’s subscriber base fell from 19,146 at the end of 2024 to 17,066 by March 2025, a drop of about 10.9 per cent. Over the same period, its market share declined from around 1.1 per cent to 0.9 per cent, pushing the company from the seventh to the eighth largest ISP in Kenya.This was a rare setback for a service that had been seen as disruptive and fast‑growing just months earlier.

While Starlink dealt with capacity limits and subscription freezes, local ISPs moved quickly to win customers. Safaricom pushed 5G home routers priced at around $23 (KES 3,000), far cheaper than Starlink’s hardware, while its fixed internet packages offered competitive speeds and pricing. At the same time, providers such as Poa Internet and Vilcom expanded their coverage, attracting urban users with low-cost plans that were easier to justify on a monthly budget.

These competitive offers, alongside fibre and mobile network improvements, made the cost‑benefit equation less compelling for many users who originally tried Starlink.

Reports also suggested that speeds sometimes lagged expectations. After initial smooth performance in 2024, median download speeds at times dipped to about 47 Mbps by mid‑2025, lower than some local fibre offerings, even after Starlink ramped up capacity with a ground station. In addition, users reporting equipment and connectivity issues  such as limited access in buildings with obstructed sky views emerged on community forums, although broad formal studies on this are limited.

For many urban and peri‑urban users, cheaper 5G and fibre options are easier to justify than a satellite kit. The higher costs unfolded against a broader context that includes economic pressures like inflation and rising living costs, which affect discretionary spending on premium internet services.

The January 2026 installment plan directly addresses the adoption barriers that have emerged. By lowering the initial payment, users can join the service with less cash upfront, while spreading the hardware cost over several months makes Starlink more accessible to price-sensitive households and rural customers who would otherwise struggle with a one-time payment.

Satellite internet still has appeal, especially in remote or underserved communities , but its success depends on strong local planning and financial accessibility.