Kenya risks American wrath if it blocks Musk's Starlink entry

Kenya risks incurring the wrath of the American government by attempting to block Elon Musk’s Starlink satellite internet service from expanding in the Kenyan market, at a time when Nairobi is negotiating a trade pact with Washington, analysts have said.

Any move by Kenyan authorities to potentially hinder Starlink’s expansion in the country could jeopardise the ongoing trade negotiations between Nairobi and Washington, according to industry analysts.

 The analysts said yesterday that as Kenya navigates the delicate trade negotiations with the United States (US), any perceived protectionism against American tech firms could jeopardise the talks and broader economic cooperation between the two nations.

“Blocking Starlink’s entry would be a risky gambit for Kenya, especially as it seeks to deepen economic ties with the US,” said regional economist Ian Njoroge. 

“The US administration has made it clear it views Starlink as a strategic asset and could retaliate against any attempt to obstruct its expansion.” Starlink, the satellite internet service operated by Elon Musk’s SpaceX, has been making inroads globally, including in various African markets. Its high-speed, low-latency connectivity has attracted significant interest, particularly in underserved rural areas.

However, market leader Safaricom has urged regulators to consider imposing conditions on Starlink’s entry, potentially requiring the company to partner with local players - a move that critics say could undermine the service’s unique selling point.

The US views Kenya as an African tech hub with significant business potential, and the outgoing Joe Biden administration has pushed for additional commercial prospects for American tech firms. This has seen the US ambassador to Kenya Meg Whitman, a former CEO of technology giants eBay and Hewlett-Packard actively push for American tech firms in Kenya.

In response to Safaricom’s request, Kenya’s telecoms regulator on Friday told The Standard that licensed service providers are free to bring any market issues to the authority’s attention

“Licensees or service providers are at liberty to raise any issue in the market with the regulator,” the Communications Authority of Kenya (CA) Director General David Mugonyi said in a statement.

The regulator said it will independently examine such issues within its mandate and procedures, and respond appropriately. “It is a normal practice as we seek to facilitate the development of the information and communications sectors,” Mugonyi told The Standard reached out.

President William Ruto has regularly pledged to prioritise the development of robust internet infrastructure across the country, promising to create an enabling environment for Kenya’s burgeoning youth population, often referred to as “Generation Z” to leverage digital tools and create their jobs. Analysts say empowering youth through improved internet access could be a crucial element in the Ruto administration’s efforts to revive the economy.

Kenyans, especially in rural and underserved areas, have long grappled with poor connectivity and high costs from the existing telecom players.  A majority have welcomed the entry of Elon Musk’s Starlink satellite internet service into the country, seen as a move that could disrupt the country’s telecoms landscape.

Starlink’s arrival has generated optimism about improved access and affordability according to a Standard check.

“The internet is a necessity, not a luxury, and Kenyans deserve unfettered access to the best available technologies,” said Alex Mugo the director of a Naivasha-based resort.