The arrival of Starlink has unsettled Safaricom, prompting the company to reach out to the Communications Authority of Kenya (CA) to reconsider its decision to issue licenses to satellite internet providers.
“Looking at the satellite landscape, we recognize the need to partner with Starlink or other satellite providers in the future to ensure that this technology integrates effectively with our offerings. We’ve had discussions and will continue to engage as long as it complements what we provide,” stated Safaricom CEO Peter Ndegwa.
He emphasized that while Safaricom’s fiber services are among the best in the region, satellite technology can enhance overall connectivity, particularly in underserved areas. “What we’re communicating to the regulator is that satellite technology serves regions that are not currently covered, benefiting the country rather than competing in urban areas. We’re not concerned about competition; we’re prepared to address it,” Ndegwa clarified.
He added that Safaricom’s correspondence with the regulator was in line with public participation and should not be seen as a sign of apprehension towards new competitors. “There seems to be a misconception that Safaricom is obstructing progress. We’re not the regulator and have merely shared our perspective on the need for industry input, which is fundamental to public participation as outlined in the Constitution,” he explained to Bloomberg.
Ndegwa remarked, “We don’t have the power to prevent anyone from operating in Kenya; that’s a regulatory decision.”
Starlink’s entry has made a significant impact, attracting attention from Kenyans who appreciate its affordable, reliable, and fast internet services, challenging Safaricom’s previous dominance in the market.
President William Ruto commented on this development during a roundtable discussion in New York, noting that Starlink’s arrival has fostered healthy competition, leading to improved services from Safaricom.
“I sometimes hear from my CEO at Safaricom that he’s not pleased with me for bringing figures like Elon Musk into the market. But I keep encouraging Peter that competition drives innovation, and I must admit, he has really stepped up his game,” Ruto said.
