Starlink Loses 2,000 Subscribers in Kenya Amid Network Freeze and Regulatory Heat

Starlink, the satellite internet service from Elon Musk’s SpaceX, is facing a significant setback in Kenya as its subscriber base fell by over 2,000 users in Q1 2025. According to new data from the Communications Authority of Kenya (CA), the company’s market share dropped from 1.1% to 0.9% between December 2024 and March 2025 — a notable decline for a service once hailed as revolutionary for rural broadband in Africa.

The dip follows a seven-month subscription freeze in Nairobi and several high-density counties including Kiambu, Machakos, Kajiado, and Murang’a — areas previously tagged as “sold out” due to network saturation. Starlink had cited bandwidth congestion and excessive demand as reasons for halting new user signups.

From Market Disruptor to Losing Momentum

Starlink entered Kenya in July 2023 with bold ambitions and high-speed satellite internet that quickly captured attention. By year-end 2024, its subscriber base had surged to 19,146, up from just over 8,000 mid-year, thanks to aggressive pricing and a rental option that reduced hardware costs from KES 89,000 to KES 45,500.

But the momentum has slowed. As of March 2025, Starlink had 17,066 active subscribers, marking a 10.9% quarter-over-quarter drop and falling to eighth place among Kenyan ISPs.

Local Players Move In

The vacuum left by Starlink’s stalled growth has created a fresh opening for local ISPs. Safaricom, the country’s largest provider, continues to dominate with a 36.1% market share, bolstered by new 5G routers priced at just KES 3,000 ($23) and competitively priced high-speed packages — a stark contrast to Starlink’s premium equipment.

Safaricom has introduced 1,000 Mbps plans and pushed fixed internet speeds to an average of 11.59 Mbps by October 2024, an 18.5% improvement year-on-year. Meanwhile, other providers such as Poa Internet (13.8%), Vilcom (3.2%), and JTL are also consolidating gains in the wake of Starlink’s subscription freeze

Regulation, Pricing, and Pushback

Beyond infrastructure concerns, Starlink is under growing regulatory scrutiny. Local ISPs have accused the company of predatory pricing and raised concerns about national security and potential interference with terrestrial mobile networks. Its KES 1,300 ($10) for 50GB plan has been flagged as unsustainable, undercutting rivals like Airtel’s KES 3,000 equivalent.

While the Competition Authority of Kenya dismissed the dominance argument due to Starlink’s small market share, the CA is moving to increase licensing fees tenfold to KES 15 million, alongside a 0.4% turnover levy, potentially impacting its long-term viability.

Speed is another pain point. Ookla data shows Starlink’s download speeds have dropped from 200 Mbps at launch to 47 Mbps by March 2025 — now the second-slowest in Africa after Madagascar.

What’s Next: Africa Expansion, but with New Hurdles

Despite challenges in Kenya, Starlink remains bullish on its African strategy. The company is planning a R2 billion ($112.7 million) investment in South Africa, where it seeks to comply with Black Economic Empowerment (BEE) regulations to secure a license. The funds would be used to build local earth stations and fibre-linked data infrastructure to support connectivity in the broader Southern African Development Community (SADC) region.

But regulatory delays could push Starlink’s South African entry to 2027, with critics like the Economic Freedom Fighters (EFF) accusing it of trying to bypass local ownership requirements. Even so, its pledge of R500 million for free broadband access in 5,000 rural schools signals a strong PR push to reposition itself as a pro-inclusion player.