The Communications Authority of Kenya (CA) has proposed significant changes to licensing fees for satellite and cable communication providers, including Starlink, under new regulations aimed at promoting technology neutrality and investment diversification.
The proposal includes merging two existing license categories, the Satellite Landing Rights (SLR) and Satellite Communication Landing Rights (SCLR), into a new consolidated “Landing Rights License.” According to CA, this move is intended to allow service providers to transmit signals into Kenya using any technology.
“This change aims to ensure technology neutrality and allow investors to land signals using any technology,” the Authority stated.
The proposed changes would see licensing fees increase drastically. If implemented, the cost of a 15-year license would rise from the current Ksh1,638,872 (USD 12,302) to Ksh15,364,395 (USD 115,331), representing a tenfold increase.
Additionally, an annual operating fee of 0.4 percent of gross turnover is set to be introduced, further adding to the operational costs for providers.
For Starlink, the satellite internet service by SpaceX, this means a one-time application fee of Ksh5,000, an initial license fee of Ksh15 million, and an annual operating fee of Ksh4 million or 0.4 percent of its gross annual sales, whichever is higher.
For example, if 0.4 percent of a company’s gross annual sales exceeds Ksh4 million, the higher amount will apply. The license will be valid for 15 years before renewal is required.
The Communications Authority also seeks to expand the scope of services satellite internet providers can offer. Under the new guidelines, satellite providers would be allowed to operate terrestrial cables, telemetry systems, tracking stations, and even participate in space research.
This development could enable companies like Starlink to establish ground stations in Kenya, an initiative that was previously opposed by regulators.
“License holders should be allowed to establish satellite systems, including hub facilities, and offer satellite services, provided they adhere to the geographical coverage requirement of serving at least three counties in Kenya,” added the CA.
The proposed regulations, if approved, are expected to reshape Kenya’s satellite communication sector while significantly increasing costs for service providers.
