In a move that could impact Kenya's telecommunications landscape, Safaricom has allegedly canceled the option for Starlink Internet payments via M-PESA, following a high-level management meeting on Monday. This development comes as Starlink, Elon Musk’s satellite internet service, intensifies its competition with Safaricom, challenging the latter's long-standing market dominance.
The decision to halt M-PESA payments for Starlink is significant given the recent shifts in the Kenyan telecom market. Starlink offers competitive pricing and high-speed internet, which has attracted many users dissatisfied with Safaricom's service. For instance, Starlink provides speeds up to 200 Mbps for KSh 6,500 per month, compared to Safaricom’s Diamond package which offers 100 Mbps for KSh 12,499 per month. Despite Starlink’s higher initial equipment cost of KSh 49,000, the company’s rental options make it a more accessible choice.
Safaricom has been criticized for its high prices and inconsistent service, particularly in rural areas. Recent disruptions due to issues with underwater cables have further exposed the vulnerabilities in Safaricom's network. In contrast, Starlink’s satellite-based service promises more reliable connectivity, bypassing terrestrial network issues.
The move by Safaricom to block Starlink payments through M-PESA has sparked debate about market control and competition. Safaricom has denied that the cancellation is intended to block Starlink, but sources confirm that the company discussed the matter in its recent meeting. This action comes against the backdrop of broader concerns about Safaricom's reluctance to adapt to market demands and allegations of data privacy issues.
The rivalry between Safaricom and Starlink highlights a shift in Kenya's telecommunications sector, with Starlink's innovative approach and competitive pricing challenging the traditional dominance of Safaricom.
