Kenya's Satellite Communication Push Challenges Starlink, Other Competitors
- Kenya plans to impose new fees on satellite providers like Starlink, aiming to tap into the growing demand for satellite internet.
- The Communications Authority of Kenya proposes annual operating fees of 0.4 of turnover and a one-time Ksh15 million 116,000 licensing fee.
- Regulatory trends across Africa, like Kenya's, pose challenges for Starlinks expansion, impacting pricing and affordability in price-sensitive markets.
Kenya is set to introduce new fees targeting satellite communication providers, including Elon Musks Starlink, as part of its strategy to tap into the growing demand for satellite-based internet.
The Communications Authority of Kenya CA has proposed regulations requiring providers to pay an annual operating fee of 0.4 percent of their gross annual turnover in Kenya, in addition to a one-time licensing fee of Ksh15 million 116,000.
These charges fall under the Satellite Landing Rights SLR framework, which mandates operators to pay either a minimum of Ksh4 million 31,000 annually or 0.4 percent of their local revenuewhichever amount is higher.
Kenya's push to benefit from the growing satellite internet industry could pose financial challenges for providers like Starlink, which are expanding across Africa. Higher operational costs may be passed on to consumers, impacting affordability in a price-sensitive market.
Regulatory ripples across AfricaKenyas proposal echoes regulatory trends elsewhere on the continent. In November 2024, Starlink temporarily halted new residential kit sales in Nigeria , citing a need for regulatory approval of price increases. This followed the Nigerian Communications Commissions NCC rejection of recent price hikes by Starlink, arguing they violated existing rules.