Tesla owner and US billionaire Elon Musk’s satellite internet company, Starlink, has more than doubled its market share in Kenya within just three months.
A new report by the Communications Authority of Kenya (CA) indicates that Starlink controlled a 1.1% stake in the Kenyan market as of the close of September 2024, up from 0.5% at the end of June of the same year.
The report further reveals that subscriber-based growth for the multinational has dramatically intensified, jumping by 8,723 new users during the review period.
This growth pace dwarfed the 8,063 subscribers gained during the full year to June, marking an impressive 101.64% growth to 16,786 subscribers.
A significant driver of this growth in the satellite internet segment was a 104.7% increase in satellite subscriptions, fueled by Starlink’s marketing campaign introducing affordable satellite equipment rental options.
Since its Kenyan launch in July 2023, the American satellite internet has demonstrated exceptional growth. From 405 subscribers at launch, its user base grew more than threefold within two months to 1,354 subscribers.
Starlink records impressive trajectory
This figure had expanded by March 2024 to 4,808 and nearly doubled to 8,063 by June. Year-over-year growth from June 2023 to June 2024 reached an extraordinary 1,891%.
As of September 2024, Starlink commanded the overwhelming majority of the satellite internet market in Kenya, with 16,786 of the total 17,042 satellite data subscriptions.
Competing providers like Viasat, GlobalTT, and WafaNet collectively accounted for just 256 subscribers.
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Notably, 96.9% of internet subscribers in Kenya now opt for speeds ranging between 100 Mbps and 1 Gbps, making satellite internet the preferred choice for high-speed services.
Satellite connections accounted for 52.98% of all high-speed internet subscriptions (100 Mbps to <1 Gbps), stressing Starlink’s role in shaping Kenya’s internet landscape.
The enhanced growth by Starlink has further propelled the company to gain three places up the market dominance ranking in the country.
Market share for ISPs in Kenya
In the new ranking, the satellite internet company has overtaken Liquid Telecommunications Kenya (1%) and Vijiji Connect Limited (0.6%) to tie with Dimension Data Solutions East Africa Limited at position seven up from position 10 in June last year.
Safaricom PLC remains the dominant Internet Service Provider (ISP) in Kenya’s fixed data market, with a 36.6% market share. It is followed by Jamii Telecommunications Ltd. (24.4%), Wananchi Group (Kenya) Ltd. (16.8%), Poa Internet Kenya Ltd. (12.6%), Mawingu Networks Limited (2.8%), and Vilcom Network Limited (1.8%).
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Kenya’s overall fixed data/internet subscriptions rose by 4.9%, from 1.50 million in June 2024 to 1.57 million in September 2024.
Since its debut in Kenya, Starlink has introduced strategic incentives to rapidly capture market share.
The company introduced a rental kit option in Kenya, enabling customers to rent satellite equipment for Ksh1,950 per month, with a one-time activation fee of Ksh2,730.
This move has made its services more accessible, addressing affordability concerns.
The new data notably comes after the Communications Authority of Kenya proposed a nearly 1,000% increase in licensing costs for satellite ISPs.
The cost of a 15-year operating license will rise from $12,302 (approximately Ksh1.59 million) to $115,331 (approximately Ksh14.9 million, with an annual fee of 0.4% of total revenue, if the proposal sails through.
While this proposal could increase operational costs for Starlink and other ISPs, it also allows satellite providers to diversify their operations, such as building terrestrial cables, telemetry systems, tracking facilities, and participating in space research.
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