Kenya: Safaricom Addresses Concerns Over Starlink Payment Cancellation Rumors

Safaricom recently clarified rumors regarding the cancellation of payments for Starlink services, addressing speculation that had circulated online. The telco had previously suggested that the Communications Authority of Kenya (CA) should consider requiring satellite Internet providers like Starlink to partner with local licensees. Safaricom argued that allowing these providers to operate without a physical presence in Kenya could pose challenges for government regulation and accountability.

In a statement, Safaricom recommended that the regulator carefully assess the risks and ensure that satellite providers operate under the license of a local company. This, they argued, would help maintain control and ensure accountability within the sector.

The Communications Authority acknowledged Safaricom’s concerns, stating that it is standard practice for licensees or service providers to raise market issues with the ICT regulator. “The Authority independently examines such issues within its mandate and regulatory framework and responds appropriately. It is part of our role to facilitate the development of the dynamic and rapidly evolving ICT sector,” the regulator added.

Starlink, which launched its services in Kenya in July 2023, recently introduced a rental kit option, providing customers with an alternative to purchasing the hardware outright. This move is aimed at making the service more accessible to those who may not be able to afford the initial purchase costs.

In response to the competition from Starlink, Safaricom has reportedly adjusted its Internet pricing in an effort to reclaim customers who had switched to the satellite service. Despite the competitive landscape, Safaricom has continued to perform strongly, reporting earnings of $1.07 billion for the fiscal year ending March 31, 2024, surpassing market expectations.

Additionally, Safaricom is focused on expanding its 5G network, with plans to establish 1,700 5G sites by July 2024, solidifying its position as a leader in the Kenyan telecom market.

While Starlink’s launch in various African countries has faced regulatory hurdles, including in Kenya, other nations that initially banned the service have since granted it licenses. Recently, Starlink successfully launched in Botswana after overcoming a year-long regulatory challenge.