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Starlink rattles rivals with Sh1,950 Internet kit rental deal

In a move poised to intensify competition in Kenya’s internet market, Elon Musk’s Starlink has introduced a new deal allowing customers to rent the Starlink internet kit, providing an option for millions of clients, who were previously unable to afford the equipment within the one-off payment.

For $15.15 or approximately Kes1,950 per month, customers in Kenya can rent a Starlink kit, which goes for $350 or Kes45,000. They will however have to pay up to $21 as one-time activation fee.

Potential customers can choose between a 50GB plan for $10 (Kes1,300) or an unlimited package for $50.50 (Kes6,500), with both plans offering internet speeds of up to 200Mbps.

Two months ago, Starlink rolled out a monthly budget package of $10 (KES 1,300), a deal that forced local internet service providers (ISPs) to introduce promotions to retain customers.

In an update earlier this month, Safaricom announced that in the race to provide fast internet speeds across Kenya, the firm now has 1,114 active 5G sites, covering 102 towns in all 47 counties.

The telco added that its 5G network sites now cover an estimated 14 percent of Kenya’s population, enabling more Kenyans to experience the benefits of high-speed internet.

Safaricom CEO Peter Ndegwa highlighted the company’s commitment to leading Kenya’s digital transformation, noting that its 5G network will play a crucial role in bridging the digital divide, and enabling access to information, critical services, and communication.

Read also: Safaricom 5G sites cross 1,100 in Kenya

Since its launch in Kenya in July 2023, Starlink has continued to expand its market, with an increasing number of Kenyas embracing Elon Musk-owned satellite internet service. In this segment, Starlink competes with rivals Skynet and NTvsat.

Just before expanding into East Africa’s largest economy, Kenya had only 405 satellite internet subscribers, but they grew to 1,354 within two months of Starlink’s arrival. As of March this year, statistics from the Kenya’s Communications Authority (CA) show that Kenya has over 4,800 satellite internet service providers.

Jamii Telecoms, another provider with a fibre product and the second-largest market share in fixed data subscriptions in Kenya has been widening its market reach beyond Nairobi, especially in the home internet offering.

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