The Kenyatta International Convention Centre (KICC) Chairman Irungu Nyakera has explained why the government should not allow Elon Musk’s Starlink to compete with Safaricom in Kenya.
In a statement on Tuesday, December 16, Nyakera defended Safaricom arguing that the Communications Authority of Kenya (CAK) should not be silent on the issue.
“I have been keenly following the issue of Starlink’s predatory entry into the Kenyan market and I opine that the Communications Authority of Kenya (CAK) needs to reconsider its decision to remain quiet. Let’s use Safaricom as an example,” he said.
Safaricom has offered more than 1 million jobs
Nyakera said Safaricom contributed Kshs 983 billion to the Kenyan economy and sustained 1,283,329 jobs in the 2023/24 financial year. On the contrary, all of Starlink’s jobs are in the United States (US).
Further, he stated that the telco giant reported that over 8 million Kenyans have been impacted by community projects done by the Safaricom and M-PESA Foundations.
Also Read: Elon Musk, Safaricom Rivalry Intensifies as Starlink Introduces Cheaper Kit After Ruto Declaration
He also mentioned that it currently accounts for almost 40% of the Market Capitalization of the Nairobi Securities Exchange, making it the most important company in Kenya.
“For these and many more reasons, including Safaricom’s recent entry to Ethiopia and the role it plays in marketing brand Kenya, CAK should find ways to protect the telecom space from predators like Starlink. Every country has a right to protect its companies,” Nyakera said.
Ndii Corrects KICC Boss on Starlink
In a contrary opinion, the chairperson of the presidential council of economic advisors, David Ndii argued that Kenya needs such competition adding that Starlink and other offshore service providers will also be paying taxes.
“We need the competition. The better option (pun intended) is to require Starlink and similar offshore digital service providers to have a tax presence in Kenya,” Ndii said.
While addressing the issue, President William Ruto said that he allowed Starlink to encourage competition in Kenya.
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Also Read: Elon Musk Responds to Ruto’s Remarks on Safaricom and Starlink Rivalry
Ruto admitted that Safaricom CEO Peter Ndegwa was not happy with the decision but encouraged him that the telco company would become more competitive and continue thriving.
“I have my CEO for Safaricom here, sometimes he is not happy with me for bringing in some other characters like Elon Musk and the like. But you see I keep encouraging Peter that competition helps you keep ahead. And he has really been trying because he has upped his game, so we want to keep that space competitive,” Ruto said.
Safaricom CEO Hints at Partnership with Starlink
Earlier in September, Ndegwa said Safaricom intends to partner with Starlink owing to its competitive packages and faster internet speeds.
Ndegwa explained that the potential partnership will ensure Starlink complements the local technology.
“From a satellite perspective, we have to partner with Starlink or other satellite providers in the future to make sure that that technology plays right through,” Ndegwa said in an interview in New York.
“We have had some discussions, and we will continue to have those discussions to the extent that they complement what we are offering.”
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