The Communications Authority of Kenya (CA) has unveiled proposed regulations targeting satellite communication service providers, marking a significant shift in the nation’s tech policy landscape. Under the new framework, providers like Starlink would pay up to 0.4 percent of their gross annual turnover or a minimum of Sh4 million annually. This comes alongside a one-time license fee of Sh15 million.

The changes represent a stark increase from the current fee of $12,500, introducing a combined licensing structure for satellite landing rights (SLR) and landing rights license (LRL). The expanded framework aims to cover diverse service offerings, including terrestrial cables, satellite hubs, and space research capabilities.

A Transformative Market

Starlink’s entry into Kenya in July 2023 has dramatically reshaped the internet landscape. By June 2023, satellite internet subscribers surged by 1,301 percent, reaching 8,324 users. Offering unprecedented internet speeds and competitive pricing, Starlink has addressed connectivity gaps, particularly in remote and underserved regions.

However, its rapid success has stirred tensions with established players. Safaricom, the dominant telecom provider, has called for regulatory safeguards, urging the CA to mandate partnerships between foreign providers and local operators.

Balancing Innovation and Regulation

Kenya’s regulatory overhaul reflects a growing ambition to govern a burgeoning satellite market while leveling the competitive playing field. Proponents argue that higher licensing fees are justified to ensure accountability and generate revenue for national development. They also highlight the need to protect local businesses from being outcompeted by global tech giants.

Critics, however, warn that the financial burden could deter foreign innovators like Starlink, stifling progress in connectivity. For rural communities where Starlink has been a lifeline, increased costs may translate to higher subscription fees, potentially reversing hard-won gains in accessibility.

The Regional and Global Context

Kenya is not alone in grappling with the challenges of regulating satellite internet. Across Africa, regulators face the dual challenge of fostering technological innovation while safeguarding affordability. As global connectivity increasingly dictates economic competitiveness, the stakes for getting it right are high.

Countries like South Africa and Nigeria have adopted similar measures, aiming to attract investment without sacrificing the inclusion of underserved populations. For Kenya, the question remains: can the new regulations strike the right balance?

Looking Ahead

As the CA moves to finalize the regulatory framework, the broader implications for Kenya’s digital future cannot be ignored. Policymakers must consider the ripple effects on innovation, local industry, and consumer costs.

The debate also underscores the importance of inclusive dialogue among stakeholders, including foreign providers, local operators, and end-users. In a globalized tech ecosystem, collaboration—not conflict—will be key to ensuring that Kenya remains a leader in connectivity without leaving its most vulnerable communities behind.