Satellite internet providers led by Starlink are set to pay significantly more to operate in Kenya following sweeping regulatory changes that could reshape the country’s fast-growing connectivity market.
The Communications Authority of Kenya (CA) has introduced a revised telecommunications framework for 2026, replacing the low-cost Satellite Landing Rights licence with a more expensive International Gateway Systems and Services (IGSS) licence.
Under the new regime, satellite firms must now pay at least $115,000 (KES 15 million) for a 15-year license, or up to $345,000 (KES 45 million) for a 25-year term.
The increase is a sharp jump from the previous flat fee of about $12,500 (KES 1.6 million). Operators will also face an annual levy of 0.4% of gross turnover, with a minimum payment of $31,000 (KES 4 million), regardless of size.
In addition, companies transmitting signals into Kenya will need a separate Landing Rights Authorisation license costing $25 000, potentially forcing firms to hold multiple permits depending on their services.
The new rules will affect a broad range of players beyond Starlink, including satellite operators such as Eutelsat and SES, as well as broadcasters like MultiChoice, and mobile networks that rely on satellite backhaul.
For Starlink, the timing is critical. The company, which entered Kenya in 2023 and now holds about 0.8% of the ISP market, requires the IGSS license to roll out its planned direct-to-cell service in partnership with Airtel across 14 African markets.
The service is expected to begin with internet-based messaging and voice apps before expanding to traditional calls and SMS by 2028.
The fee hike could have mixed implications for consumers, as higher compliance costs will likely be passed down to users through pricing adjustments.
The regulatory overhaul follows tensions in Kenya’s telecom sector after Safaricom raised concerns about Starlink’s early operations.
However, the incumbent has since pivoted, exploring partnerships to extend connectivity to underserved rural areas.
For users, the immediate impact may be higher subscription costs, particularly in remote regions where satellite internet is often the only viable option.
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