Satellite Communication Providers to Obtain a Licence Costing at least Sh15 Million

Satellite communications companies including Starlink will now need to get themselves a licence which costs at least 15 million Kenyan shillings and pay the Kenyan government up to 0.4 % of their annual turnover from this week under new, expanded telecommunications rules.

The changes have been put in place under the Communications Authority of Kenya's Revised Telecommunications Market Structure for 2026. Something new that comes out of this is a special International Gateway Systems and Services licence aimed specifically at satellite companies.

The 15 year licence will apply to companies running switching infrastructure and network control type operations - there is also an option of a 25 year licence costing 45 million shillings. The licencees will also have to pay a 0.4% annual operating fee based on their turnover, or at a minimum 4 million Kenyan shillings - whichever is that will be higher. All of this will impact satellite internet providers, broadcasters like MultiChoice, and regional mobile operators using satellite tech.

The regulator has said that Starlink is going to need a licence to roll out its direct to cell service in Kenya this year under its deal with Airtel Africa even though right now it only has a landing permission. Starlink and Airtel have teamed up to bring satellite to mobile tech across 14 different African markets. Their service will at first support things like messaging and calls over the internet - as in WhatsApp - before eventually in 2028 expanding to include regular phone calls and even SMS.

Cost Impact

The new rules replace the old Satellite Landing Rights licence which was costing a flat rate of $12,500, that's about 1.6 million shillings. But now things are a lot different with the new rules using a mix of fixed licence charges and an annual levy tied into revenue, creating a much bigger operational expense for the companies.

Starlink has been in Kenya since 2023 and has managed to grow into the country's ninth biggest internet service provider - that's about 0.8% of the local market. There is also another satellite firm operating in the country called Spacecoin.

The Communications Authority have said they took into account public feedback before finalising these rules - trying to bring their licensing up to speed with the latest trends and tech. The new rules kick in 30 days after they are published.

Dual Licensing Regime

The regulator has also brought in a new Landing Rights Authorisation licence which lasts for 15 years - that lets you send telecommunications signals into Kenya via satellite or submarine cables. That licence costs $500 (64,900 shillings) just to apply and a further $25,000 (3.2 million shillings) to actually get it.

Under the new set up, physical cables, power feed gear and satellite footprints all fall under the LRA, while switching systems and network centres need the IGSS licence. If you have a company offering a various services, you might actually need both.

All of this was first proposed last year in December, partly because of the scrutiny Starlink got after it entered Kenya and started putting the heat on the local broadband market. In the beginning Safaricom was worried about the risks to its own network and wanted to review Starlink's licence. But Safaricom has since changed its tune and now wants to use satelitte tech for its own coverage in remote areas.

The new rules are expected to change the operations for satellite connectivity in Kenya - but at the cost of higher operational expenses for providers.

The new rules are expected to reshuffle the deck so to speak in Kenya's satellite connectivity world, while also raising the costs for providers.