Safaricom, Kenya’s largest telco, is exploring a partnership with satellite internet providers to expand access to underserved areas. CEO Peter Ndegwa disclosed the plan during the company’s earnings call on Friday, framing satellite as part of a wider push to grow Safaricom’s fixed broadband business.
This push comes at a time when global players like Starlink are intensifying efforts to reach deep rural markets, including a recent partnership with Airtel Africa, prompting questions about Safaricom’s long-term strategy in a space that is being threatened by other players. With a 36.1% share of Kenya’s broadband market, the company is now under pressure to hold its lead while exploring new ways to lift the country’s internet penetration rate, which stands at 40%.
“This is a business (broadband) with a huge growth potential,” Ndegwa said. “We are focused on delivering fixed broadband solutions through fibre, fixed wireless, satellite, and other evolving technologies. We are also looking at opportunities to partner with satellite to offer more options and reach for our customers.”
Safaricom did not name any potential satellite partners, but Starlink remains a likely contender. The SpaceX-owned service has already struck a regional deal with Airtel Africa and plans to launch in nine countries, including Kenya, targeting areas with the biggest connectivity gaps.
As of December 2024, Starlink is Kenya’s seventh-largest internet service provider (ISP), overtaking established local rivals like Dimension Data and Liquid Telecommunications Kenya just six months after breaking into the country’s top ten. It now has 19,146 users, up from 16,786 three months earlier, capturing 1.1% of Kenya’s internet market, according to the Communications Authority of Kenya (CA).
While still trailing far behind market leaders Safaricom and Jamii Telecommunications, its rise signals a shift in Kenya’s competitive broadband landscape, especially in hard-to-reach areas.
Ndegwa made similar satellite partnership comments in a September 2024 interview with Bloomberg, following increased scrutiny over how Safaricom plans to respond to Starlink’s aggressive African expansion.
But Starlink’s momentum has also drawn regulatory attention. The Communications Authority plans to raise satellite licence fees nearly tenfold and introduce a turnover levy, amid complaints from local ISPs, including Safaricom, that its pricing model and infrastructure strategy could distort competition.
