Starlink, Elon Musk’s satellite internet venture, is struggling to gain traction in Kenya two years after its high-profile debut. Launched in July 2023 with bold promises of connecting remote areas beyond the reach of fibre, the service has barely scratched the surface, holding just 0.8 per cent of Kenya’s fixed broadband market.
The latest industry report by the Communications Authority of Kenya (CA) covering the April to June 2025 quarter noted that by the end of the reporting period, 73.2 million mobile phones were connected to mobile networks, translating to a penetration rate of 139.7 per cent. Smartphone and feature phone penetration rates stood at 83.5 per cent and 56.2 per cent respectively. While mobile adoption is near-universal, fixed broadband has remained largely urban, dominated by entrenched fibre and wireless providers. Out of 63.4 million fixed data subscriptions, Starlink accounts for only 17,425. This puts it on par with Liquid Telecom and slightly ahead of Dimension Data’s residential footprint, but far behind Safaricom’s 34 per cent share and the combined 45 per cent held by Jamii Telecommunications, Zuku, and Poa Internet. Smaller providers such as Ahadi Wireless, Vilcom, and Mawingu Networks cover regional niches, leaving limited room for new entrants.
Affordability remains the main barrier. The CA report noted that “Starlink’s fixed data growth remains constrained by hardware costs and urban saturation by fibre incumbents.” The company’s equipment was initially priced at Sh89,000. Although a rental option now exists at Sh1,950 per month with a Sh2,730 activation fee, monthly packages still range from Sh1,300 for 50GB to Sh6,500 for unlimited data. Competing fibre bundles from Zuku, Faiba, and Poa Internet are cheaper and more appealing to city households.
Starlink’s true footprint is through infrastructure support rather than household subscriptions. In May, Airtel Kenya began using Starlink satellites for rural backhaul. According to the CA, “Airtel Kenya leveraged Starlink’s low-earth orbit infrastructure to support rural base station connectivity.” This move extended reliable 4G coverage to underserved counties, boosting Airtel’s subscriber base.
However, the CA clarified that these users are counted under Airtel’s mobile subscriptions, not Starlink’s fixed accounts, which explains why its market share appears stagnant despite wider impact. Meanwhile, mobile data continues to dominate internet use, with the CA reporting during the review period that “legacy 3G networks are being phased out in favor of spectrum reallocation for 4G and 5G.”
Kenya’s Tobacco Bill signals global shift, black mart
Kenya’s Sh120 billion tobacco sector is facing uncertainty as bar owners, liquor traders, and retailers oppose the Tobacco Control (Amendment) Bill, 2024, warning that it could trigger massive job losses and fuel the black market. The Bill, sponsored by ODM-nominated senator Catherine Mumma, proposes tough regulations requiring manufacturers to secure separate licenses for each product, disclose ingredients and nicotine content, and seek pre-approval for e-cigarettes, nicotine pouches, and heated tobacco devices. Retailers would also face strict restrictions on product displays, advertising, and sales, with heavy fines and jail terms for violations. However, traders argue that the proposals have been rushed without stakeholder consultation, noting in a joint petition by BAHLITA and the Retail Traders Association of Kenya that “consumers, retailers, manufacturers, and other critical stakeholders have been left out of the conversation.” They warn that compliant businesses will be penalized while illicit brands flourish. Globally, Australia pioneered plain packaging in 2012, the UK is planning to ban disposable vapes, and South Africa is considering higher tobacco taxes, signaling a wider shift toward stricter controls.
