Customers to pay Sh1,950 monthly as Starlink introduces hardware rental option in Kenya

Starlink, the satellite internet division of SpaceX, has launched a hardware rental option in Kenya, aiming to make satellite internet more accessible to the general population. This initiative seeks to overcome the high upfront costs that have been a barrier for many potential customers since Starlink entered the Kenyan market in July 2023.

To use the new rental service, customers need to pay a one-time activation fee of Sh2,700 and a monthly rental fee of Sh1,950 for the hardware. These charges are separate from the monthly service plans, which start at Sh1,300 for a 50 GB data plan. Despite the rental model, users receive the same high-speed internet, reaching up to 200 Mbps, which has positioned Starlink as a competitive player in the Kenyan market.

Initially, the cost of purchasing a Starlink hardware kit posed a significant financial challenge for many Kenyans, with prices starting at Sh89,000 when the service first became available.

Over time, Starlink made several price adjustments to make the hardware more affordable, reducing the cost to Sh74,000 and later to Sh45,500 for outright purchases. In addition to lowering prices, Starlink has also partnered with retail chains such as Carrefour and online marketplaces like Jumia to increase the availability of its products.

The introduction of the hardware rental option is seen as a move to make satellite internet more accessible. This development provides an alternative to traditional internet service providers like Safaricom and Airtel.

Starlink's competitive pricing has added pressure on local providers, with its 50 GB monthly plan priced at Sh1,300, much lower than Airtel's Sh3,000 for a similar package and Safaricom's 45 GB plan at Sh2,500.

The new rental model is expected to increase the number of satellite internet subscribers in Kenya. Although still relatively small, the market for satellite internet has grown significantly since Starlink's entry.

The introduction of a rental option aligns with Kenya's "Lipa mdogo mdogo Economy" culture, where affordability and flexibility are important factors for consumers.

Starlink's hardware rental option may prove to be a game-changer for those who need reliable internet but were previously unable to afford the high initial costs. The move could lead to increased competition in the internet service market, potentially driving down prices and improving service quality across the board.