Safaricom Denies Allegations of Halting M-Pesa Payments for Starlink Internet Over Competitive Concerns

Safaricom, Kenya’s leading telecommunications provider, has firmly denied claims that it has discontinued M-Pesa as a payment option for Starlink internet services. The confusion began when a user on X (formerly Twitter), Gathogo B Mwangi, alleged that Safaricom had removed M-Pesa payments for Starlink, SpaceX’s satellite internet service. Safaricom quickly addressed the concerns, stating, “Bwana Gathogo, this isn’t true. The option is still there. Please reach out if you encounter any problems.”

Starlink’s Entry into the Kenyan Market

Starlink launched its satellite internet services in Kenya in July 2023, aiming to serve remote and underserved areas where traditional internet providers, such as Safaricom, have limited reach. This launch marked a significant step in Kenya’s digital landscape, offering high-speed internet options in regions that have long struggled with connectivity issues.

To attract Kenyan customers, Starlink introduced a unique pricing strategy that includes two main packages: a 50 GB data plan with speeds up to 200 Mbps for KSh 1,300 per month (with additional data priced at KSh 20 per GB) and an unlimited data plan with speeds up to 100 Mbps for KSh 6,500 (USD 50) per month. Moreover, Starlink has offered customers the flexibility to rent its equipment for KSh 1,950 per month or to purchase it outright for KSh 45,500. This aggressive pricing strategy is designed to capture a significant share of the local market by providing an alternative to established providers.

Competition Heats Up

Kenya’s internet market is currently dominated by a few key players, including Safaricom, Zuku, Airtel, and Jamii Telecommunications (Faiba), each offering various packages to cater to diverse customer needs. Safaricom’s packages range from 10 Mbps for KSh 2,999 to 100 Mbps for KSh 12,499, while Zuku’s plans start at 10 Mbps for KSh 2,799, going up to 60 Mbps for KSh 5,999. Airtel’s 5G plans vary from 10 Mbps at KSh 3,500 to 50 Mbps at KSh 7,500, and Faiba offers speeds up to 140 Mbps for KSh 20,000.

The entry of Starlink into the Kenyan market has sparked a lively debate, particularly on social media, where many users have expressed a preference for Starlink over traditional providers. One of the key advantages of Starlink’s satellite-based system is its resilience against outages and disruptions that have occasionally plagued Kenya’s cable-based networks, especially during politically sensitive periods when the government has imposed internet restrictions.

Regulatory and Market Dynamics

The heightened competition from Starlink has prompted Safaricom to urge the Communications Authority of Kenya (CA) to regulate satellite internet providers like Starlink more stringently. Safaricom’s argument is centered around the need for satellite providers to collaborate with local companies rather than operate independently, ensuring a level playing field. The Communications Authority has responded to these concerns by stating that it reviews regulatory issues raised by service providers and takes appropriate action when necessary.

Despite these calls for regulation, Starlink’s advanced technology and competitive pricing have already begun to disrupt Kenya’s internet market. Its appeal lies in offering reliable internet in hard-to-reach areas, presenting a formidable challenge to established players who have traditionally held sway over Kenya’s urban and rural connectivity landscape.

Future Outlook

The entry of Starlink is expected to drive all internet providers in Kenya to enhance their services and offer more competitive pricing, ultimately benefiting consumers. As Safaricom and other local providers navigate this new competitive landscape, the pressure to innovate and improve service quality will likely intensify. This evolving dynamic in Kenya’s internet market underscores the broader impact of technological advancements and competition in fostering better consumer experiences and expanding access to essential digital services.