Safaricom sued over Starlink's entry into Kenyan market

Kituo cha Sheria, a legal advocacy group, has filed a lawsuit against Safaricom PLC, demanding that SpaceX's satellite internet service, Starlink, be granted entry into the Kenyan market.

The Communication Authority of Kenya (CA), and the Competition Authority of Kenya (CAK) were also sued in the case in which Kituo cha Sheria argued that allowing Starlink to operate would increase internet access and drive down prices for consumers.

This lawsuit follows Safaricom's request to the CA that SpaceX, an Elon Musk-led company, be required to collaborate with local internet providers. Safaricom had argued that SpaceX's direct entry into the market poses a threat to mobile network quality.

However, Kituo cha Sheria, led by Dr Annette Mbogoh, contended that Safaricom’s move would not only prevent Kenyans from accessing faster internet speeds but also perpetuate high costs for internet services.

In the petition, Kituo said that the allegations by Safaricom contained in a July 5, 2024 letter to the CA remain unsubstantiated as it is a competitor and lacks independent and objective judgement.

High Court Judge Chacha Mwita was informed that Safaricom is apprehensive about Starlink's entry due to its lower service costs. Kituo cha Sheria claimed that Safaricom charges Sh6000 for internet access, while Starlink offers 50GB of data for Sh1800.

“The allegations in the first respondent’s letter dated July 5, 2024, are unfounded as it is a competitor and lacks independent and objective judgment. The first respondent is biased due to its market dominance and is concerned about the entry of other major players,” Mbogoh said.

Illustration of Starlink logo. (Reuters)

The legal team representing Kituo cha Sheria includes lawyer Marc Chirchir, Ahmed Sigat, Abdul Maalim, and Nelius Njuguna. They argue that blocking Starlink would leave consumers with slow and expensive internet options.

The court heard that SpaceX has been deploying its Starlink satellites, aiming to provide a global network of internet coverage. This commercial model for home use is gaining popularity internationally.

Kituo cha Sheria is now seeking a court ruling declaring Safaricom’s actions unconstitutional and asserting that internet access is a fundamental socio-economic right. The group also wants the court to issue a permanent injunction preventing the CA from restricting Starlink’s operations or limiting its equipment in Kenya.

“That pending hearing and determination of this application and petition, a conservatory order of injunction be issued restraining the 2nd and 3rd respondent (CA and CAK) from taking any actions that may be prejudicial to the consumers of SpaceX's Starlink, including but not limited to frustrating any payments made to Starlink, its subsidiaries licensees and distributors, or any of its affiliated companies,” Chirchir said in an affidavit filed in court.

The organisation said that unless the threat to block Starlink is urgently stopped, Kenyan internet users or consumers will be forced to continue struggling with unaffordable internet prices.

“If the petition and application should not be deemed urgent and the interim prayers requested granted, the respondents' actions pose an imminent danger to the progressive realisation of rights and liberties under Articles 40, 43, and 46 of the Constitution,” Chirchir said.