Kenya proposes 10x fee increase for satellite ISPs
The Kenya Communication Authority (CA) has recommended a significant hike in licensing fees for satellite internet service providers (ISPs) such as Starlink as it seeks to review the Satellite Landing Rights licence that satellite ISPs must get to operate in Kenya.
The current proposal would raise the cost of a 15-year operating licence from $12,302 (KES 1,579,614) to $115,331 (KES 14,808,846), a nearly 1,000% increase. Furthermore, ISPs would have to pay a yearly fee equal to 0.4% of their overall earnings.
This proposed regulation change, released in December, coincides with Starlink's rapid expansion in Kenya to meet the growing demand for high-speed internet connectivity.
According to CA, “This change aims to ensure technology neutrality and allow investors to land signals using any technology,”
It added the review aims to remove "certain market entry and operational barriers identified over time."
In addition to the proposed licence cost increase, the CA wants to expand the operational reach of satellite ISPs. The new criteria would allow satellite operators to manage terrestrial cable, telemetry systems, tracking facilities, and even conduct space research.
“Licensees should be allowed to establish satellite systems, including hub facilities, and provide satellite services, provided they comply with the geographical scope principle (at least three counties in Kenya),” CA said.
This move may pave the way for Starlink to establish ground stations in Kenya, which has previously been delayed owing to regulatory constraints.
Starlink launched in Kenya in mid-2023, and according to the latest CA data, its presence has doubled the country's satellite internet subscribers.
As of December 31, 2024, Starlink had increased by more than 1,000%, with over 8,500 users.