Safaricom Slashes Fibre Rates by 25% as Starlink Faces Kenyan Market Headwinds
Safaricom, Kenya’s leading telecommunications provider, has unveiled a significant price reduction for new business fibre connections, offering a 25% discount for the next two months. This strategic move, announced at a recent Nairobi business forum, is specifically targeting firms located in fibre-ready buildings and is notably timed as satellite internet competitor Starlink grapples with a shrinking customer base in Kenya. The initiative underscores Safaricom’s proactive strategy to solidify its market dominance in fixed broadband while concurrently expanding its footprint among the nation’s vital small and medium-sized enterprises (SMEs).
Competitive Dynamics in Kenya’s Broadband Market: Price Wars and Market Shifts
The aggressive price adjustment by Safaricom brings the entry-level 15 Mbps business fibre plan down to approximately KES 2,249 ($17.44) monthly, a considerable drop from its previous KES 2,999. Similarly, the premium 100 Mbps package is now available for KES 4,724 ($36.62), down from KES 6,299. These competitive rates are designed to attract new corporate clients and reinforce Safaricom’s position in the high-speed internet segment.
Safaricom currently serves an impressive 678,118 fixed-internet customers, commanding a substantial 36.5% share of the Kenyan market. To further entice and retain its SME clientele, a segment also hotly contested by rivals such as Liquid Intelligent Technologies and Jamii Telecom, Safaricom is bundling this fibre offer with new business credit products. This integrated approach aims to create a more compelling value proposition for enterprises seeking reliable and affordable connectivity.
In contrast, Starlink, the satellite internet service, has experienced a dip in its Kenyan subscriber base. Reports indicate its user count in the country fell from approximately 19,000 to around 17,000 by March 2025. This decline presents an opportune moment for traditional fibre providers like Safaricom to capitalize on evolving market dynamics and reinforce their competitive edge in Kenya’s vibrant digital economy.
Safaricom’s calculated move to reduce fibre rates reflects a robust strategy to defend its market leadership and aggressively pursue growth within the crucial business segment. By making high-speed fibre more accessible and affordable, the telco is set to reshape the competitive landscape of fixed broadband in Kenya, ultimately benefiting businesses across the country with enhanced connectivity options.
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