Elon Musk’s Starlink, has hit a rough patch in Kenya, with new subscriber growth plunging by 72.9% in the final quarter of 2024, according to fresh data from the Communications Authority of Kenya (CA).
The slowdown, which saw only 2,360 new users added between October and December compared to 8,723 in the previous quarter, has cast a shadow over the company’s once-rapid rise in the East African nation.
However, a recent infrastructure boost could signal a turnaround.
Since its launch in Kenya in July 2023, Starlink has promised high-speed, low-latency internet, particularly for rural areas underserved by traditional providers.
The service gained traction quickly, climbing to a 1.1% market share by December 2024 and securing its spot as the seventh most-popular fixed data provider.
But the latest figures reveal a stark reversal, driven by a suspension of new subscriptions in five key counties—Nairobi, Kajiado, Machakos, Kiambu, and Murang’a—starting in November 2024.
The reason? Network overload due to stretched capacity, a challenge that has exposed the limits of Starlink’s ambitious rollout.
“We’ve seen unprecedented demand, but our infrastructure wasn’t fully prepared for it in these high-density areas,” a Starlink spokesperson admitted last November, as reported by Business Daily.
The suspension came at a time when the company also paused sales in five other countries, hinting at broader scalability issues.
Starlink’s meteoric entry has not gone unchallenged. Local internet giants like Safaricom, which holds a 36.1% market share despite a slight dip, have accused Starlink of predatory pricing and potential interference with existing networks.
In August 2024, Safaricom urged the CA to reconsider Starlink’s operating model, advocating for mandatory partnerships with local ISPs. “This isn’t just competition—it’s a threat to our connectivity ecosystem,” a Safaricom executive argued at the time.
Yet, the rivalry has yielded unexpected benefits for Kenyan consumers.
Internet speeds have surged by up to 18.5%, hitting a record 11.59 megabytes per second in October 2024, according to San Francisco-based firm Meltwater. Online engagement has also spiked, reflecting a broader digital boom.
President William Ruto has embraced this dynamic, telling a UN General Assembly audience in September 2024, “Competition keeps our local players ahead. Safaricom’s CEO isn’t thrilled, but he’s upped his game.”
Other providers have felt the heat too. Jamii Telecommunications’ share slipped to 23.6%, and Zuku’s dropped to 15.4%, while smaller players like Poa Internet and Vilcom Network gained ground, buoyed by competitive pricing and new offerings.
Just when Starlink’s Kenyan journey seemed to falter, a surprising development emerged.
On January 29, 2025, the company unveiled a new Point of Presence (PoP) in Nairobi, a move designed to bolster capacity and slash latency. “This is a game-changer,” said tech analyst Jane Mwangi. “If Starlink can resolve its urban bottlenecks, it might reclaim its momentum.”
The PoP could address the very issues that stalled growth late last year, potentially reopening subscriptions in Nairobi and beyond. While it’s too early to gauge the full impact, early signs suggest a renewed push to capture Kenya’s growing digital market.
Starlink’s journey in Kenya reflects both the promise and pitfalls of satellite internet in emerging markets. Its initial success—doubling its market share in just three months earlier in 2024—showed its potential to bridge the digital divide.
But the recent slowdown shows the challenges of scaling in urban hubs, where demand is fierce and competition entrenched.
Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news TIPS, story angles, human interest stories, drop us an email on [email protected] or via Telegram