Kenya is experiencing a seismic shift in its satellite internet sector, as new licensing fees introduced by the Communications Authority of Kenya (CA) are set to significantly affect providers such as Starlink. These regulatory changes aim to reshape the nation’s rapidly expanding connectivity market.
Starting in 2026, the CA will replace the previously low-cost Satellite Landing Rights license with a more expensive International Gateway Systems and Services (IGSS) license. Under this new regulatory framework, satellite companies will face substantial fees, ranging from a minimum of US$115,000 for a 15-year license to up to US$345,000 for a 25-year license, representing a dramatic increase from the previous license fee of around US$12,500.
Additionally, satellite operators will be subject to an annual levy of 0.4% of their gross income, with a minimum payment of US$31,000, applying to all companies regardless of their size. Another requirement is a separate Landing Rights Authorisation license, costing US$25,000, which may necessitate multiple licenses for different services.
The impact of these new rules will extend beyond Starlink, affecting a wide array of satellite operators, including Eutelsat and SES, broadcasters such as MultiChoice, and mobile networks reliant on satellite backhaul services.
For Starlink, the timing of this transition is pivotal. Since entering the Kenyan market in 2023 and currently holding about 0.8% of the ISP market, the company needs the IGSS license to implement its proposed direct-to-cell service in collaboration with Airtel across 14 African countries. This service aims to start with internet-based messaging and voice applications before evolving to include traditional call services and SMS by 2028.
Consumers may experience mixed effects from the fee increases, as the higher compliance costs are likely to be reflected in subscription rates. This regulatory change comes in the wake of tensions in Kenya’s telecom industry, particularly after Safaricom expressed concerns about Starlink’s initial operations.
However, Safaricom has since shifted its strategy, seeking partnerships to expand connectivity in underserved rural regions. For users, the immediate result may be higher subscription costs, especially in remote areas where satellite internet remains the only feasible option.
