Kenya’s Communications Authority (CA) has introduced sweeping changes to satellite licensing fees as part of the Revised Telecommunications Market Structure for 2026, replacing a flat-rate regime with a tiered framework that dramatically raises the cost of operating in the country’s fast-growing satellite broadband market.
Under the new rules, satellite service providers must obtain an International Gateway Systems and Services (IGSS) licence costing a minimum of KES 15 million (approximately $115,000) for a 15-year term, rising to KES 45 million ($345,000) for a 25-year licence. This compares to the previous flat Satellite Landing Rights licence fee of approximately $12,500 — representing a roughly ninefold increase at the entry level. Operators are also required to pay an annual levy of 0.4% of gross turnover, subject to a KES 4 million minimum threshold.
The framework introduces an additional Landing Rights Authorisation licence for operators transmitting signals into Kenya via satellite or submarine cable, meaning companies may be required to hold both licences depending on their service mix. The changes affect not only satellite internet providers but also broadcasters and telecom operators relying on satellite backhaul infrastructure, including MultiChoice and regional mobile network operators.
Starlink, which entered Kenya in 2023 and has grown into a disruptive force in the broadband market, is among the most directly affected. The company is preparing to expand direct-to-cell satellite services in partnership with local telecom operators but will need additional regulatory approvals before doing so under the new framework. The regulatory tightening follows heightened scrutiny of Starlink’s market impact and earlier objections from Kenya’s dominant terrestrial operator — which has since shifted toward collaboration with the LEO provider to serve rural areas.
Editor’s Note: Kenya is the most watched satellite market in East Africa, and this move is being closely read by operators across the continent as a possible template. The tension here is real — higher fees generate revenue and strengthen regulatory control, but risk slowing LEO deployment in underserved areas where satellite is the only viable connectivity option. Pair this with Algeria’s concurrent NGSO tender for full context on how African regulators are diverging in their approaches to the LEO broadband wave: Algeria opening selectively, Kenya raising the bar on incumbents and new entrants alike.
