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President William Ruto has spoken openly about Elon Musk’s growing investment in Kenya’s digital space and Safaricom's concerns over the increased competition.
Speaking at the Kenya Business and Investment Roundtable in New York, Ruto revealed that while Musk’s ventures, such as Starlink, have stirred up competition, they are essential to driving innovation in Kenya’s telecommunications sector.
During his remarks, Ruto acknowledged Safaricom's dominance in the market, noting that the company’s CEO, Peter Ndegwa, has expressed dissatisfaction with the entry of global players like Musk.
However, Ruto emphasised that competition is crucial for pushing companies to innovate and remain ahead in the rapidly evolving digital economy.
"Sometimes, my CEO at Safaricom isn't very happy with me for bringing in competitors like Elon Musk and others into the space," President Ruto remarked.
"But competition makes you stay ahead, and Safaricom has certainly upped its game. I must admit Peter has been doing quite well," he added.
Musk's Starlink, a satellite-based internet service, has entered the Kenyan market, offering high-speed internet services even in remote areas.
This move poses a direct challenge to Safaricom's stronghold, particularly in rural regions where internet access has traditionally been limited.
Despite Safaricom's reservations, Ruto expressed optimism that the presence of competitors would enhance the quality and affordability of internet services across the country.
READ: Elon Musk celebrates Starlink's new milestone in Kenya
The President reiterated his commitment to expanding Kenya’s digital infrastructure, announcing a significant project to lay 100,000 kilometers of fiber optic cables nationwide.
This ambitious plan will connect 10,000 key institutions, including hospitals, schools, and markets, with high-speed internet and public Wi-Fi hotspots.
The initiative is part of the government’s broader push to transition to an e-government system, where citizens can access services online more efficiently.
"We are working with global companies like Visa, Mastercard, and others to keep the space competitive. Our goal is to ensure a strong digital footprint across Kenya," Ruto explained. "Competition will drive growth in areas like e-commerce, healthcare, and education," he added.
As Kenya continues to evolve into a digital hub, Ruto’s administration is balancing the interests of established local players like Safaricom with the need to attract global tech giants like Musk.
The president highlighted that this healthy competition would ultimately benefit Kenyan consumers by ensuring better services and lower prices.
This week, Safaricom announced it has upgraded its fibre internet speeds. The upgrades include;
- 10 Mbps plan increased to 15 Mbps.
- 20 Mbps plan now offers 30 Mbps.
- 40 Mbps plan doubled to 80 Mbps.
- 100 Mbps plan increased fivefold to 500 Mbps for KES 12,500 ($97).
- Introduction of Gigabit Speeds: Safaricom is also the first ISP in Kenya to offer gigabit speeds (1 Gbps) for KES 20,000