Safaricom CEO Peter Ndegwa Welcomes Potential Partnership with Starlink

 In a hurry? Here’s a quick summary…

• Safaricom is exploring a partnership with Elon Musk's Starlink to expand internet access in rural areas through satellite technology.

• Both companies are competing in Kenya's internet market, with Safaricom upgrading its services and Starlink offering more affordable packages.

Safaricom, Kenya's largest telecommunications provider, is exploring a potential partnership with Elon Musk's Starlink, known for its competitive internet packages and high-speed connectivity. 

Safaricom CEO Peter Ndegwa told Bloomberg that such a collaboration could allow Starlink’s satellite technology to complement local services, especially in rural areas where fibre networks are less accessible.

Ndegwa highlighted Safaricom's strong presence in the market, noting that their 4G network covers 95% of the country, with fibre increasingly favored by homes and large businesses. 

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While Safaricom had raised concerns to the Communications Authority of Kenya (CA) about licensing satellite internet providers like Starlink, Ndegwa clarified that the company’s views were part of public participation, not an attempt to block Starlink's entry.

He emphasized that Safaricom is not against competition but wants to ensure satellite internet complements existing infrastructure, particularly in areas not served by fibre. 

Ndegwa also pointed out that Safaricom invests heavily in Kenya, spending up to USD 350 million annually on infrastructure development, and contributes significantly to the economy through taxes.

President William Ruto recently weighed in on the competition between Safaricom and Starlink, stating that Starlink's entry into the market has spurred Safaricom to improve its services. 

Safaricom has responded by upgrading its fibre internet speeds, including the introduction of a premium package offering speeds of up to 1,000 Mbps. 

Meanwhile, Starlink has launched a more affordable mini kit, priced at Ksh.27,000, with monthly plans starting at Ksh.1,300, making it accessible to a wider range of users.

Despite the increasing competition, Ndegwa remains confident in Safaricom’s ability to thrive, noting that competition benefits consumers by offering more choices and improving services across the board.