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Safaricom, Kenya's leading telecommunications provider, has submitted a formal request to the Communications Authority (CA) to restrict satellite internet providers that operate from foreign countries, a move that could directly impact the operations of Elon Musk's Starlink, which has been gaining traction in Kenya due to its aggressive promotions and cost-effective plans.

In a memo dated July 15, Safaricom urged the CA to require that satellite service providers partner with local license holders before being allowed to operate in Kenya. This, according to the telco, would mitigate potential risks associated with allowing these companies to function independently without local agreements.

"Satellite service providers should not be granted direct licenses but should operate under the licensing rights of a local entity," Safaricom stated in the memo.

The company argued that allowing satellite ISPs to operate without a physical presence in Kenya could complicate the government's ability to regulate their activities effectively. Safaricom further highlighted that since Starlink's launch in 2023, the company has primarily relied on third-party distributors and resellers to connect users, which Safaricom sees as a loophole in regulatory oversight.

The rapid growth of Starlink in Kenya has been noteworthy, with CA data showing a tenfold increase in users during the first quarter of 2024, fueled by discounts on hardware and the introduction of a $10 monthly plan. Recently, on August 21, Starlink introduced a $15 monthly rental option for its equipment, targeting users unable to afford the $350 upfront purchase cost.

This surge in Starlink's popularity has led local providers like Safaricom to ramp up their marketing efforts to maintain their market share, which currently stands at 36.7% in the data services sector. Safaricom, which has hinted at launching its satellite internet service, sees the unregulated operation of foreign satellite ISPs as a threat to both the market and governmental control.

The CA and Starlink did not immediately respond to requests for comment. Safaricom remains firm in its stance that the absence of a physical presence by these providers in Kenya could hinder governmental oversight and accountability, particularly in cases of non-compliance.