Kenya’s Communications Authority (CA) has proposed a significant increase in licensing fees for satellite internet service providers (ISPs) such as Starlink. The proposal would increase the cost of a 15-year license from $12,302 to $115,331, which is a tenfold increase, alongside the introduction of an annual levy of 0.4% of gross turnover. This change comes during Starlink’s rapid expansion in Kenya, fueled by increasing demand for high-speed internet services.
This proposal denotes a tightening of regulatory oversight, potentially raising the barrier for entry, especially for smaller satellite ISPs. While local ISPs might welcome the move as it could level the playing field with satellite competitors, the increased costs could impede the growth of smaller companies and slow the expansion of high-speed internet access in underserved areas. Providers such as Viasat, Indigo Telecom, and NTvsat, who collectively serve fewer than 1,000 subscribers, may struggle to take in these new fees.
The CA emphasized that “these changes aim to ensure technology neutrality and provide flexibility for investors to land signals using any technology.”
Along with the new proposal, the CA’s proposal seeks to broaden the role of satellite ISPs. Under the new regulations, these providers would be permitted to operate terrestrial cables, telemetry systems, tracking facilities, and even participate in space research. This could pave the way for Starlink to establish ground stations in Kenya, a process previously delayed due to regulatory hurdles.
Since its launch in June 2023, Starlink has experienced rapid growth, increasing its subscriber base by more than 1,000%, with over 8,500 users recorded as of December 31, 2024. However, its expansion has faced opposition from other ISPs. Safaricom, for instance, requested the CA to block satellite ISPs that operate outside the country, citing security concerns and alleging that such companies would undermine the government’s ability to ensure accountability.
In response to Starlink’s competitive pricing and growing presence, Safaricom has upgraded its fiber internet speeds, while Starlink has countered by offering promotions and more affordable packages, such as a cheaper kit and a $30.87 monthly plan introduced in September 2024.
