In the wake of stiff competition from Elon Musk's Starlink, Safaricom has warmed up to partnering with the tech giant that has caused waves in the internet market in the country.
President William Ruto commented on Starlink's entry into the Kenyan market, noting that it has sparked healthy competition that has made Safaricom provide better services.
Safaricom CEO Peter Ndegwa
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Starlink moved in with great reception from Kenyans who continue to warm up to its competitive packages and faster internet speeds.
In an interview with Bloomberg, Safaricom Chief Executive Officer Peter Ndegwa noted that the partnership will be for the benefit of consumers and will see Starlink complement the local technology and improve quality of services to customers.
Ndegwa appreciated Starlink’s satellite technology, noting that it is effective in providing internet to areas where fibre-based technology is not available.
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Safaricom and other local providers use fibre-based technology that is not available in some areas.
Safaricom CEO Peter Ndegwa
Safaricom CEO Peter Ndegwa
Pulse Live Kenya
The entry of Starlink rattled Safaricom which responded by writing to the Communications Authority of Kenya (CA), asking them to reconsider its decision to grant licences to satellite internet providers in the country.
"From a satellite perspective, we have to partner with Starlink or other satellite providers in future to make sure that that technology plays right through. We have had some discussions, and we will continue to have those discussions to the extent that they complement what we are offering.
"Fibre is one of the best in the region. The satellite adds or complements the rest of the technology. What we're telling the regulator is that satellite is used in places not covered today because it will benefit the country rather than competing in urban areas. We're not worried about competition, we will deal with it." Ndegwa clarified.
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Safaricom CEO Peter Ndegwa explains letter to Communications Authority of Kenya
He added that Safaricom’s letter to the regulator was aligned with public participation and should not be misconstrued to imply that the company fears competition from the new entrant.
"I think there's misconception about Safaricom getting in the way. We're not the regulator. We had expressed our views about how the regulator should ensure industry players express their views about how this is in terms of public participation which is enshrined in the Constitution," he noted.
"That is the point because we don't have the ability to prevent anyone from operating in Kenya. That is a regulatory decision." Ndegwa told Bloomberg.
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Ruto's comment on Starlink vs Safaricom competition
Starlink landed with a bang, with a section of Kenyans noting that it has taken the market that was previously dominated by Safaricom by storm with affordable, reliable and faster internet.
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President William Ruto commented on the matter during a roundtable discussion in New York, noting that the entry of Starlink has sparked healthy competition that has made Safaricom provide better services.
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"I have my CEO for Safaricom, sometimes he's not very happy with me for bringing other characters like Elon Musk and others into the space. I keep encouraging Peter that competition makes you keep ahead and he's been doing pretty well, I must admit, he's really upped his game," Ruto said.
