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President William Ruto addressed the disruptive impact of Elon Musk’s Starlink satellite internet during the United States-Kenya Business and Investment Roundtable held in New York on Tuesday. The president highlighted how Starlink’s entry has intensified competition, compelling local telecom giants to elevate their service offerings and operational standards.
Kenya’s leading internet provider, Safaricom, long dominated the fixed internet landscape with its robust fibre-optic network connecting over 370,000 households and 32,000 businesses. However, the advent of Starlink’s satellite-based internet services introduced a formidable alternative, particularly challenging in rural and underserved regions where traditional fibre infrastructure was sparse or non-existent. President Ruto emphasized that while such competition might initially unsettle established providers, it ultimately serves the consumer by enhancing service quality and innovation.
“In conversations with Peter Ndegwa, Safaricom’s CEO, I’ve encouraged embracing competition as it drives companies to stay sharp and improve their offerings,” Ruto remarked. “Safaricom has admirably responded to the competitive pressures brought by Starlink.”
In response to Starlink’s market entry, Safaricom has proactively upgraded its internet packages. The company enhanced the speeds of its existing Bronze, Silver, Gold, and Diamond plans and introduced a new Platinum package offering speeds up to 1,000 Mbps. This premium package targets heavy internet users, including gamers and content creators, positioning Safaricom to better compete with Starlink’s high-speed offerings.
Starlink, which launched in Kenya in July 2023, utilizes a constellation of satellites to deliver internet services, bypassing the need for extensive ground-based infrastructure. This technology has proven especially effective in rural areas, providing download speeds between 50 Mbps and 500 Mbps—substantially higher than the 100 Mbps commonly offered by local providers. Looking ahead, Starlink plans to expand its capacity, aiming to deliver speeds up to 1 Gbps and eventually 10 Gbps through additional satellite deployments, further intensifying competition in Kenya’s internet sector.
President Ruto also outlined the Kenyan government’s broader connectivity initiatives aimed at enhancing nationwide internet access. The administration committed to laying 100,000 kilometers of fibre-optic cable across the country, a move intended to bridge the digital divide and spur economic development, particularly in historically underserved rural areas.
Beyond infrastructure, Ruto delved into the integration of Artificial Intelligence (AI) across key sectors. AI applications are being implemented in the new university funding model, optimized fertiliser distribution for farmers, and the management of the Social Health Insurance Fund (SHIF). While acknowledging AI’s transformative potential, Ruto cautioned against cybersecurity threats and the spread of misinformation. He highlighted ongoing collaborations with technology firms like Google to protect government systems from cyberattacks and disinformation campaigns.
Amid these developments, Starlink announced the availability of its more affordable Mini variant in Kenya on Thursday. Initially priced at Ksh.74,000, the Starlink Mini kit’s cost has been progressively reduced to Ksh.27,000, with monthly packages starting at Ksh.1,300. The Mini model is more compact and portable compared to the Standard version, covering up to 112 square meters and supporting up to 128 devices—ideal for basic internet needs. In contrast, the Standard version covers up to 297 square meters, withstands extreme weather conditions, and supports up to 235 devices, making it suitable for streaming, video calls, and gaming.
Despite Starlink’s competitive pricing and superior speeds, Safaricom has raised concerns over the satellite provider’s market entry. The telecom giant, which holds a 36.7% share of Kenya’s fixed broadband market, formally requested the government to re-evaluate the licensing of satellite internet providers. Safaricom warned of potential illegal connections and harmful interference with mobile network operators, urging the Communications Authority of Kenya (CA) to reconsider its licensing decisions to protect the integrity of the local telecom ecosystem.
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