Kituo Cha Sheria Files Lawsuit Against Safaricom and CA Over Starlink Expansion in Kenya

A significant legal battle has emerged in Kenya as the advocacy group Kituo cha Sheria is reported have filed a lawsuit against Safaricom, the Communications Authority of Kenya (CA), and the Kenya Competition Authority over alleged attempts to restrict Starlink’s entry into the market. The lawsuit highlights growing concerns that Safaricom, Kenya’s largest telecom service provider, may be trying to stifle competition and maintain high internet costs for consumers by pressuring regulators to impose restrictions on Starlink, the satellite internet provider owned by Elon Musk’s SpaceX.

Safaricom’s Concerns Over Starlink

The roots of this legal battle can be traced back to a letter Safaricom sent to the CA in early July 2024. In the said letter, Safaricom expressed worries about Starlink’s entry into Kenya’s telecom market, urging the regulator to compel satellite internet providers like Starlink to partner with local operators rather than allowing them to operate independently. Allowing satellite providers like Starlink to operate without local partnerships could undermine these investments, potentially destabilizing the market.

Safaricom, the said letter pointed, argued that mandating partnerships with local operators would promote innovation while avoiding market disruption. However, these concerns also reflect fears that Starlink’s arrival could challenge Safaricom’s dominant position in the market by offering Kenyans more affordable internet options.

Kituo Cha Sheria’s Lawsuit: Defending Consumer Access

In response to Safaricom’s actions, Kituo cha Sheria, led by Dr. Annette Mbogoh, according to ITWeb.Africa, filed a lawsuit arguing that Safaricom’s request to the CA would hinder consumer access to better and cheaper internet services. The advocacy group contends that Safaricom’s dominant market position makes them apprehensive about the entry of a competitor like Starlink, which could offer far superior speeds and more affordable pricing.

Kituo cha Sheria’s lawsuit argues that Safaricom’s attempt to regulate Starlink’s operations is unconstitutional, as it infringes on Kenyans’ socio-economic right to access the internet. The group also wants the court to issue a permanent injunction preventing the CA from taking any actions against Starlink or restricting its gadgets and services in Kenya.

Starlink’s Competitive Edge in the Market

Starlink’s entry into Kenya has been marked by aggressive pricing strategies and a focus on accessibility. After initially pricing its hardware kits at over KES 90,000, Starlink drastically reduced prices and introduced rental services to make the technology more accessible. Kenyans can now rent Starlink kits for just over KES 2,700 per month, with service plans starting at KES 1,300 per month for 50GB of data.

This pricing structure is highly competitive when compared to Safaricom’s internet services, whose lowest tier cost consumers just over KES 2,000 per month for 10Mbps unlimited home internet. Starlink’s flexibility and costs have been argued to be a more attractive alternative, especially for those in underserved or rural areas where traditional ISPs have struggled to provide reliable service.

Lack of Innovation and Market Reaction

The so-called attempts to restrict Starlink’s operations in Kenya have drawn significant criticism. Observers and consumers have pointed out that local telcos, including Safaricom, have failed to innovate in recent years. The promise of 5G in Kenya, for instance, has not lived up to expectations, with slow speeds and expensive data plans disappointing many users. Meanwhile, Starlink promises speeds of up to 200+ Mbps, far outstripping what is currently available from Safaricom and other local providers.

Moreover, Starlink has made its hardware widely available, with kits being sold in supermarkets like Carrefour and Naivas. This easy access, coupled with competitive pricing, has positioned Starlink as a serious disruptor in Kenya’s internet market.

Legal and Regulatory Ambiguities

At the heart of the debate is the regulatory framework governing satellite internet providers like Starlink. While traditional telcos are heavily regulated, it remains unclear how the CA intends to regulate Starlink and similar satellite operators. Safaricom’s petition to the CA calls for stricter regulation of satellite services, specifically asking for them to be forced into partnerships with local licensees. If the CA sides with Safaricom, it could impose significant hurdles for Starlink’s continued expansion in Kenya.

However, if the court rules in favor of Kituo cha Sheria, it could affirm the right of Kenyans to access satellite internet services without interference from local operators or regulators. This would pave the way for increased competition and potentially lower internet costs for millions of Kenyans.

What’s Next?

The outcome of this legal battle could reshape the future of internet access in Kenya. As Starlink continues to expand, traditional telcos like Safaricom are facing mounting pressure to innovate and lower prices. The lawsuit filed by Kituo cha Sheria could serve as a key test of whether Kenya’s internet market will remain dominated by local operators or whether global players like Starlink will be allowed to operate freely, bringing with them the promise of faster speeds and more affordable options.