Telecom

Starlink Pauses New Subscriptions in Nairobi Amid Soaring Demand

Starlink Pauses New Subscriptions in Nairobi Amid Soaring Demand
Thursday, 07 November 2024 16:27

Kenya’s digital landscape is poised for continued expansion, with a focus on improving digital access across both urban and rural regions. Addressing infrastructure constraints and maintaining favorable regulatory conditions will be key to supporting this momentum.

Starlink has paused new subscriptions in Nairobi and five nearby counties due to overwhelming demand that has stretched the network's capacity. On November 4, CEO Elon Musk addressed the issue, stating that Starlink is actively working to expand internet capacity in densely populated urban areas.

The Communications Authority of Kenya reveals in its Fourth Quarter Sector Statistics Report For The Financial Year 2023/2024 that Satellite subscriptions recorded a significant growth, from 405 in June 2023 to 8,324 in June 2024, an annual growth rate of 1,955.3%. This growth is attributed to the licensing and subsequent launch of Starlink Internet Services Kenya earlier in the financial year, laying the foundation for digital services to reach even remote regions.

Starlink provides high-speed, low-latency broadband using Low Earth Orbit (LEO) satellites, offering speeds of up to 200 Mbps. Initially, Starlink offered a 100 Mbps plan at KES 6,500 ($50), while leading telco Safaricom provided the same speed in its Diamond plan at KES 12,499 ($97). However, in response to competition, Safaricom upgraded its Diamond package in September 2024, maintaining the same price but increasing the speed to 500 Mbps.

Since its launch in Kenya in July 2023, Starlink has risen to capture 0.5% of the market share with 8,063 subscribers, according to the Communications Authority. This growth was fueled by discounted kits and affordable monthly plans. To attract budget-conscious customers, Starlink introduced a KES 1,950 ($15) monthly rental plan for its hardware in August this year, which otherwise costs KES 45,000 ($349) to purchase.

This situation serves as a valuable case for broader discussions on internet infrastructure in Africa, where underserved regions often struggle with high costs and inconsistent service from traditional ISPs. Starlink's entry into the market has been a disruptive force, offering an alternative with competitive pricing and reaching areas previously underserved by terrestrial networks.

Hikmatu Bilali

On the same topic
Local firms deliver digital solutions for transport, health, and territorial admin. Systems include biometric licenses, hospital records, and local...
Cameroon invested $45.2-54.2 million in fiber optic infrastructure, but it remains largely underutilized. Consumers continue to report...
Mauritania warns three telecoms over poor service in 62 locations Demands compliance in 30 days or face new sanctions Operators previously...
AXIAN and four VCs poured €3M into Nucleon to expand AI cyber-defenses across Africa. Nucleon’s self-learning Zero-Trust platform already...
Most Read
01

From Dakar to Nairobi, Kampala to Abidjan, mobile money has become a lifeline for millions of Africa...

Africa's Boundless Future: How a simple mobile phone became a pocket bank for millions
02

• WAEMU posts 0.9% deflation in July, second month in a row• Food, hospitality prices drop; alcohol,...

WAEMU Region Records Second Straight Month of Deflation, at -0.9% in July 
03

Airtel Gabon, Moov sign deal to share telecom infrastructure Agreement aims to cut costs, boo...

Gabon’s Airtel, Moov to Share Towers Under Govt-Brokered Deal
04

Vision Invest invests $700m in Arise IIP, Africa’s largest private infrastructure deal in 202...

Saudi Arabia’s 2025 Shopping List Now Includes Industrial Parks in Africa — With a $700 Million Entry Ticket
05

Even though it remains the smallest "crypto-economy" in the world, sub-Saharan Africa shows that vir...

Sub-Saharan Africa Crypto Transactions Up 52% to $205B on Inflation, Inclusion Push
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.