(Ecofin Agency) - Kenya’s digital landscape is poised for continued expansion, with a focus on improving digital access across both urban and rural regions. Addressing infrastructure constraints and maintaining favorable regulatory conditions will be key to supporting this momentum.

Starlink has paused new subscriptions in Nairobi and five nearby counties due to overwhelming demand that has stretched the network's capacity. On November 4, CEO Elon Musk addressed the issue, stating that Starlink is actively working to expand internet capacity in densely populated urban areas.

Starlink is working to increase Internet capacity in dense urban areas in Africa as fast as possible.

Please note that there is still significant capacity outside of city centers. https://t.co/Vlk4sNDAjX

— Elon Musk (@elonmusk) November 4, 2024

The Communications Authority of Kenya reveals in its Fourth Quarter Sector Statistics Report For The Financial Year 2023/2024 that Satellite subscriptions recorded a significant growth, from 405 in June 2023 to 8,324 in June 2024, an annual growth rate of 1,955.3%. This growth is attributed to the licensing and subsequent launch of Starlink Internet Services Kenya earlier in the financial year, laying the foundation for digital services to reach even remote regions.

Starlink provides high-speed, low-latency broadband using Low Earth Orbit (LEO) satellites, offering speeds of up to 200 Mbps. Initially, Starlink offered a 100 Mbps plan at KES 6,500 ($50), while leading telco Safaricom provided the same speed in its Diamond plan at KES 12,499 ($97). However, in response to competition, Safaricom upgraded its Diamond package in September 2024, maintaining the same price but increasing the speed to 500 Mbps.

Since its launch in Kenya in July 2023, Starlink has risen to capture 0.5% of the market share with 8,063 subscribers, according to the Communications Authority. This growth was fueled by discounted kits and affordable monthly plans. To attract budget-conscious customers, Starlink introduced a KES 1,950 ($15) monthly rental plan for its hardware in August this year, which otherwise costs KES 45,000 ($349) to purchase.

This situation serves as a valuable case for broader discussions on internet infrastructure in Africa, where underserved regions often struggle with high costs and inconsistent service from traditional ISPs. Starlink's entry into the market has been a disruptive force, offering an alternative with competitive pricing and reaching areas previously underserved by terrestrial networks.

Hikmatu Bilali