Safaricom Eyes Satellite Partnerships to Defend Broadband Market Share

AFRICAN BUSINESS AND ECONOMYMay 13, 2025 at 10:57 AM UTC

TLDR

Safaricom is exploring partnerships with satellite internet providers as part of a strategy to expand broadband access to underserved regions
The move comes as global players like Starlink gain ground in Kenya’s rural internet market, where fixed infrastructure remains limited
Internet penetration in Kenya stands at just 40%, leaving room for growth, especially in rural areas

Safaricom is exploring partnerships with satellite internet providers as part of a strategy to expand broadband access to underserved regions, CEO Peter Ndegwa announced during the company’s latest earnings call. The move comes as global players like Starlink gain ground in Kenya’s rural internet market, where fixed infrastructure remains limited.

“We are focused on delivering fixed broadband solutions through fibre, fixed wireless, satellite, and other evolving technologies,” Ndegwa said. “We are also looking at opportunities to partner with satellite to offer more options and reach for our customers.”

Safaricom holds 36.1% of Kenya’s broadband market but faces rising competition. Internet penetration in Kenya stands at just 40%, leaving room for growth, especially in rural areas where traditional infrastructure is harder to deploy.

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Key Takeaways

Since entering Kenya in 2023, SpaceX-owned Starlink has rapidly grown its presence, reaching over 19,000 users and becoming the country’s seventh-largest ISP by the end of 2024. Its satellite model has proven especially effective in reaching remote regions, a segment where traditional ISPs struggle. Starlink's regional deal with Airtel Africa, covering nine countries including Kenya, has raised competitive pressure on Safaricom. In response, regulators are considering raising satellite licence fees and introducing a turnover-based levy, partly in response to complaints from local ISPs, including Safaricom, about market distortions caused by Starlink’s pricing strategy. While Safaricom has yet to confirm any satellite partner, a collaboration with Starlink remains a possibility, albeit complicated by regulatory and competitive concerns. The telco’s broadband expansion plans—including satellite—are seen as crucial to maintaining its market lead and supporting growth beyond mobile services. The next phase of competition in Kenya’s internet sector may hinge on who can serve the hardest-to-reach customers at scale.

Business

Safaricom

Starlink

Telecommunication

Kenya

Satellite Internet