In a move that could impact major satellite communication providers such as Starlink, the government of Kenya is seeking to increase the licensing fees for companies offering satellite-based internet services. The Communications Authority of Kenya (CA) has proposed new regulations that will see the Satellite Landing Rights (SLR) licence fee, which is required for satellite providers to operate within the country, rise significantly.
Currently, satellite providers are required to pay an initial fee of $12,500 (approximately Ksh. 1.6 million) for an SLR licence. However, under the new proposal, the initial fee will be raised to Ksh. 15 million (approximately $112,500). This hike is part of a broader government effort to ensure that satellite internet providers contribute more significantly to Kenya’s telecommunications sector while also adhering to local regulatory standards.
The move is seen as an attempt to regulate the booming satellite internet market, particularly as more companies like Starlink, owned by Elon Musk’s SpaceX, expand their presence in the region. Starlink and other companies have been offering internet services to underserved and remote areas in Kenya, providing much-needed connectivity in areas where traditional infrastructure has been slow to develop.
The proposed increase in fees is likely to create a ripple effect in the satellite internet industry. While some companies may view it as a burden, others could see it as a necessary step to regulate the sector more effectively. For Starlink, the fee hike will mark a significant cost adjustment, as the company has been rapidly scaling its operations in Kenya and other African countries.
The Communications Authority of Kenya has stated that the proposed fees would not only ensure that satellite operators contribute fairly to the sector but also encourage competition among service providers. This move is expected to foster a more sustainable growth model for satellite internet services in Kenya while raising expectations for compliance with local laws.
With this decision, Kenya continues to position itself as a growing hub for technological innovation, balancing growth with regulation in the rapidly evolving telecommunications landscape.
