Safaricom, Kenya’s leading telecommunications provider, is embracing a future where collaboration with satellite-based internet providers, particularly Elon Musk’s Starlink, could become a reality. Safaricom CEO Peter Ndegwa recently revealed the company’s openness to partnerships that would see Starlink complementing Safaricom’s current technologies, with a primary focus on extending internet coverage to Kenya’s remote areas.
In an interview with Bloomberg, Ndegwa discussed Safaricom’s strategic vision in response to the rising influence of Starlink, which has rapidly disrupted the global internet market with its competitive pricing and fast internet speeds. He clarified Safaricom’s stance on satellite technology, highlighting how it could be used to bridge connectivity gaps in areas that fibre optic networks have been unable to reach.
The potential collaboration between Safaricom and Starlink comes at a time when the demand for reliable and high-speed internet in Kenya is on the rise. The conversation around this partnership underscores Safaricom’s ongoing investment in technological infrastructure, while also illustrating the competitive yet symbiotic relationship between traditional telecom providers and emerging satellite-based internet services like Starlink. In this article, we will explore the details of Ndegwa’s statements, the regulatory landscape, and the broader implications of a Safaricom-Starlink partnership for Kenya’s internet future.
Safaricom’s Vision for Complementary Technologies
Ndegwa’s remarks highlight Safaricom’s recognition that satellite technology offers unique opportunities for expanding internet access in rural and underserved areas of Kenya. He emphasized that while Safaricom’s 4G network covers 95% of the country, there are still regions where the physical limitations of fibre infrastructure prevent seamless connectivity. Here, satellite technology can play a crucial role in ensuring that even the most remote parts of the country can enjoy fast and reliable internet.
“From a satellite perspective, we have to partner with Starlink or other satellite providers in future to make sure that that technology plays right through,” Ndegwa explained during his interview with Bloomberg. He pointed out that Safaricom has already engaged in discussions with Starlink and plans to continue exploring ways in which satellite technology can complement the telco’s existing offerings.
This partnership is not only about staying competitive but about expanding Kenya’s digital footprint, particularly in rural areas where connectivity issues have long hindered development. For Safaricom, integrating Starlink’s satellite technology into its service portfolio could help the company maintain its position as Kenya’s leading telecom provider while also addressing the growing demand for more reliable and far-reaching internet services.
The Role of the Communications Authority and the Regulatory Landscape
One of the main points of contention surrounding Starlink’s entry into the Kenyan market has been the role of the Communications Authority of Kenya (CA). Earlier this year, the CA granted licenses to satellite internet providers like Starlink, allowing them to begin operations in Kenya. This move has raised concerns among local telecom providers, including Safaricom, about the potential for unfair competition.
In response to these concerns, Safaricom submitted a letter to the CA, urging the regulator to reconsider its decision and ensure that satellite internet providers operate within a framework that promotes fair competition. Ndegwa clarified that Safaricom’s intentions were not to block Starlink from entering the market but to ensure that the introduction of satellite technology aligns with the country’s regulatory requirements.
“I think there’s a misconception about Safaricom getting in the way,” Ndegwa noted. “We’re not the regulator. We had expressed our views about how the regulator should ensure industry players express their views about how this is in terms of public participation, which is enshrined in the Constitution.”
Ndegwa emphasized that Safaricom is committed to a level playing field where all providers, including satellite-based services like Starlink, can operate fairly. He pointed out that Safaricom’s investments in Kenya have made it a key player in the country’s economy, and as such, the company has a vested interest in ensuring that the regulatory environment supports both innovation and healthy competition.
A Competitive Market: The Starlink Factor
Since its global launch, Starlink has attracted significant attention for its innovative approach to internet delivery. Unlike traditional telecom companies that rely on fibre optics or mobile networks, Starlink uses a network of low-Earth orbit (LEO) satellites to provide high-speed internet to users around the world. This has made it particularly attractive for users in remote or rural areas where other forms of internet connectivity are often unavailable or unreliable.
In Kenya, Starlink’s entrance into the market has been met with both excitement and concern. For consumers, Starlink’s competitive pricing and fast speeds are appealing. The satellite internet provider recently launched a mini kit priced at Ksh.27,000, with monthly packages starting from Ksh.1,300. These offerings have made it a popular choice for users looking for an affordable alternative to traditional internet providers like Safaricom.
However, critics argue that Starlink’s aggressive pricing strategy has the potential to disrupt the local market, which has been largely dominated by Safaricom. Some have even gone so far as to accuse Safaricom of trying to stifle competition by lobbying the CA to limit Starlink’s operations in Kenya.
In response to these allegations, Ndegwa defended Safaricom’s track record, pointing out that the company has been investing heavily in Kenya for years. “I wouldn’t call it dominance,” Ndegwa said. “We’ve been successful because we have invested in Kenya for a long time. Many people don’t realize we actually got licenses all around the same time across the industry.”
Safaricom invests between USD 300 million and USD 350 million annually in expanding its infrastructure, a commitment that Ndegwa believes has positioned the company to remain competitive in the face of new challengers like Starlink. He added that while competition is inevitable, it should not come at the expense of local companies that have played a critical role in Kenya’s digital transformation.
President Ruto’s Take on the Matter
Kenya’s President William Ruto has also weighed in on the Safaricom-Starlink debate, offering his perspective on how competition in the telecommunications sector could benefit the country. During a roundtable discussion in New York, Ruto acknowledged that Starlink’s entry into the market has created a more competitive environment, which in turn has pushed Safaricom to improve its services.
“I have my CEO for Safaricom; sometimes he’s not very happy with me for bringing other characters like Elon Musk and others into the space,” Ruto joked. “I keep encouraging Peter that competition makes you keep ahead, and he’s been doing pretty well, I must admit, he’s really upped his game.”
Indeed, Safaricom has responded to the increased competition by upgrading its fibre internet speeds and introducing new packages aimed at high-demand users. The telco recently launched its Platinum package, which offers speeds of up to 1,000 Mbps—ideal for gamers, content creators, and other heavy internet users. This move is seen as part of Safaricom’s broader strategy to maintain its market leadership by continuously enhancing the quality and speed of its services.
The Future of Internet in Kenya
As the telecommunications landscape in Kenya continues to evolve, the potential partnership between Safaricom and Starlink could signal a new era of connectivity for the country. While competition between the two companies may be inevitable, there is also an opportunity for collaboration that could benefit consumers by improving internet access in underserved areas.
For Safaricom, integrating satellite technology into its service offerings represents a natural next step in its mission to connect all Kenyans to the digital economy. By working with Starlink, Safaricom could leverage the strengths of both satellite and fibre technologies to create a more robust and comprehensive internet infrastructure that serves the needs of all users, regardless of their location.
Ndegwa’s comments reflect a forward-thinking approach to the challenges and opportunities that lie ahead for Kenya’s telecommunications sector. As the country’s largest telecom provider, Safaricom is well-positioned to lead the charge in expanding internet access and fostering innovation. By embracing competition and exploring partnerships with companies like Starlink, Safaricom is ensuring that it remains at the forefront of Kenya’s digital future.
Ultimately, the success of Safaricom’s strategy will depend on how effectively it can balance competition with collaboration. As the internet landscape in Kenya continues to shift, one thing is clear: the future of connectivity will be defined by the ability of providers to innovate, adapt, and deliver high-quality services that meet the diverse needs of consumers across the country.
