Safaricom Offers Home Fibre Customers 25 Per Cent Price Cut On Packages

Kenya’s biggest voice and internet services provider, Safaricom, has introduced a promotional discount on its Home Fibre services. The company is offering a 25 per cent reduction on its four most popular packages – Bronze, Silver, Gold, and Diamond – for new customers for the month of August. This pricing is aimed at attracting new subscribers and defending its market leadership against a backdrop of increasing competition.

Safaricom holds the largest share of the fixed internet market at 36.5 per cent, but it faces significant pressure from key competitors. Jamii Telecommunications Ltd. (JTL), which operates as Faiba, holds a 22.5 per cent market share, making it Safaricom’s closest rival. Zuku, a pioneer in the market, commands a 14.4 per cent share.

The entry of new players, most notably Starlink with a 0.9 per cent market share, has also intensified competition, particularly in underserved regions where the satellite internet provider can offer high-speed connectivity where fibre infrastructure is absent.

Safaricom’s relationship with Starlink is complex and has evolved from a position of initial rivalry and regulatory concern to one of potential partnership. While the two are direct competitors for internet subscribers in Kenya, recent developments suggest a more pragmatic approach.

When Starlink entered the Kenyan market, it was seen as a significant disruptive force. Safaricom initially expressed reservations, lobbying the Communications Authority of Kenya (CA) to require satellite internet providers to partner with local network operators. This move was intended to ensure regulatory oversight, protect Safaricom’s extensive local investments, and promote a “level playing field.”⁴

However, this stance has since shifted. Safaricom CEO Peter Ndegwa has publicly stated that the company is “open to a potential partnership” with Starlink and other satellite providers. The strategic rationale is not to compete directly in the same urban areas but to use Starlink’s satellite technology to complement Safaricom’s existing terrestrial infrastructure.

Safaricom’s core business relies on its vast fibre and 4G/5G networks, which are highly effective in urban and semi-urban areas. However, deploying this infrastructure in remote, rural regions is costly and often unfeasible. This is precisely where Starlink’s satellite-based service has a distinct advantage. By partnering with Starlink, Safaricom could leverage this technology to offer high-speed internet to its customers in parts of the country where it currently has limited or no coverage.

Despite the talks of a partnership, the two companies remain fierce competitors. Safaricom has responded to Starlink’s entry by adjusting its own offerings. It has increased its fixed internet speeds and introduced promotional offers to retain its market-leading position – one of them being the 25 per cent price cut. Conversely, Starlink has adjusted its pricing strategy to make its service more accessible to a broader range of customers.