Under the revised rules, companies will also be liable for an annual operating fee of 0.4% of gross turnover, with a minimum charge of KES 4 million. While Starlink, backed by SpaceX, can absorb these costs, smaller satellite internet providers may struggle, potentially forcing them out of the Kenyan market.
The IGSS license will be required for a 15-year term at KES 15 million, or a 25-year term at KES 45 million. In addition, a separate Landing Rights Authorization license is required for companies transmitting signals into Kenya via satellite or submarine cables.
This license costs $25,000 with a $500 application fee, meaning firms may need to secure both licenses depending on the scope of their operations.
Starlink, which entered Kenya in 2023, currently holds about 0.8% of the local internet market. The IGSS license is a prerequisite for its direct-to-cell service, part of a broader deal with Airtel Africa spanning 14 countries.
The service will initially offer internet-based messaging and calls, with full voice and SMS capabilities expected by 2028.
The fee increase also affects satellite broadcasters like MultiChoice and regional telecom operators relying on satellite infrastructure.
While originally proposed in December 2024 after Starlink’s market entry stirred Safaricom’s concerns about network interference, the rules now align with Kenya’s broader goal of structured telecom oversight.
Initially, Safaricom petitioned the CA to revoke Starlink’s license due to concerns over illegal connections. However, the company has since shifted strategy, exploring the potential of using Starlink’s satellite network to expand internet coverage to remote areas, reflecting a changing competitive and collaborative landscape in Kenya’s broadband sector.
These licensing reforms mark a pivotal moment in Kenya’s telecommunications policy, balancing revenue generation with market regulation, and potentially reshaping the satellite internet market landscape.
