Kenya’s Communications Authority has proposed significantly raising licence costs for satellite internet service providers (ISPs) like Starlink. Under the new proposal, a 15-year operating licence would jump from USD 12,302 (KSH 1,579,614) to USD 115,331 (KSH 14,808,846), marking nearly a 1,000% increase. Additionally, providers would need to pay a yearly fee of 0.4% based on their total revenue. This regulatory shift comes when Starlink has rapidly grown its footprint in Kenya, with an increasing consumer appetite for fast internet connectivity.
The proposed regulations signal stricter government control over the satellite internet sector, which could create higher barriers to market entry. The fee increase may benefit established local internet providers by limiting satellite-based competition, but it poses challenges for the industry’s smaller players. Concerns are that these heightened costs could limit expanding internet coverage to rural and underserved regions. Several smaller satellite operators, including Viasat, Indigo Telecom, and NTvsat – whose combined customer base is under 1,000 subscribers – might struggle with these increased financial obligations.
Licencing Framework Adjustments
In addition to the proposed increase in licence fees, the CA‘s proposal also aims to broaden the scope of operations for satellite ISPs. Under the new guidelines, satellite providers could operate terrestrial cables, telemetry systems, tracking facilities and even participate in space research. This expansion could pave the way for Starlink to establish ground stations in Kenya, a plan previously hindered by regulatory obstacles.
Legitimate operators under this category, like Starlink, can now expand their services from one county/state to three, provided they comply with the updated licensing restrictions. Additionally, Network Facilities Provider (NFP)-T3 licensees can deploy satellite systems, including satellite hubs, without technology limitations as long as they adhere to county scope limitations. Operators exceeding the three-county limit without upgrading to an NFP-T2 license will incur penalties of 0.2% of their annual gross turnover for each additional city or county served without proper authorisation.
Aimed at smaller-scale providers, this new licence category restricts operations to a single county/state. The fee structure includes an application fee of KSH 1,000(USD 8), initial fees of KSH 15,000(USD 117), and an annual operating license fee (AOL) of KSH 15,000 (USD 117) or 0.4% of gross yearly turnover, whichever is higher. The license term is set at 15 years. Operators holding an NFP-T4 license may upgrade to an NFP-T3 license upon meeting specific criteria, including expanding their operational scope. Applicants for the NFP-T4 license are also required to simultaneously apply for a County Application Service Provider (ASP) License, which carries its fee structure: an application fee of KSH 1,000(USD 8), initial fees of KSH 10,000(USD 78), and an AOL of KSH 10,000(USD 78) or 0.4% of annual gross turnover, whichever is higher, with a 15-year license term.
Source: https://spaceinafrica.com/2025/01/08/kenyas-new-regulatory-measures-target-starlink-and-other-satellite-isps-with-increased-licence-fees/
