Starlink, a satellite internet provider, has faced challenges in Kenya, where its market share has declined due to subscription freezes and increased competition from local ISPs.
Market Decline and Causes
According to the Communications Authority of Kenya, by March 2025, Starlink's market share fell to 0.9% from 1.1% in December 2024. This decline was attributed to a suspension of new subscriptions in key areas like Nairobi due to network overload. As a result, subscriber numbers dropped by over 2,000 in a single quarter, from 19,146 to 17,066 users.
Competition with Local Providers
The subscription freeze has allowed local ISPs to reclaim market share. Safaricom, Kenya's leading ISP with a 36.1% market share, capitalized on the gap by offering more affordable 5G routers and high-speed internet packages. Other ISPs like Poa Internet and Vilcom Network also gained traction. President William Ruto noted that the competition, including Starlink's actions, has improved services offered by local providers.
Starlink's Future in South Africa
Despite challenges in Kenya, Starlink plans to expand into South Africa, considering an investment of R2 billion ($112.7 million) to navigate local regulatory requirements and improve access in rural areas. However, the execution of these plans may face challenges due to the need to comply with Black Economic Empowerment legislation.
Starlink's issues in Kenya highlight the difficulties faced by new entrants in a competitive internet market, as well as the importance of local providers in delivering quality services to users.
