An American startup, Spacecoin, has received a licence to roll out satellite internet in Kenya, setting up a challenge to Starlink, which currently dominates the country’s satellite connectivity market.
The company, through its parent firm, Space Telecommunications Inc. (STI), announced that it is rolling out satellite internet connectivity in underserved regions of Kenya and Nigeria, following securing of regulatory nod in both countries.
The licences come as Kenya’s regulator pushes to expand last-mile connectivity and diversify broadband technologies to reach remote and underconnected areas, through the state-led last-mile internet connectivity project and private initiatives.
Spacecoin’s entry is expected to challenge Elon Musk’s Starlink’s dominance in the satellite internet space in both countries, potentially easing prices and widening access to the emerging technology.
Currently, Starlink controls more than 98 percent of Kenya’s satellite internet market, with 19,470 of the country’s 19,762 satellite internet subscribers using the service, according to the Communications Authority of Kenya.
Founded by Tae Oh, Spacecoin positions itself as a lower-cost alternative built on open-source satellite technology, targeting regions where fibre and mobile networks remain commercially unviable.
Unlike Starlink, which sells directly to end users, Spacecoin said it will work with local partners to distribute its services.
Mr Oh said the firm’s agreements with regulators in Kenya and Nigeria reflect official recognition that satellite connectivity can deliver “the scalability and affordability traditional infrastructure can’t”.
“These agreements confirm that Spacecoin has moved beyond being just an idea, but a real movement with momentum that will unlock permissionless connectivity through open-sourced satellite technology, powered by people and built for people,” he said.
Beyond Kenya and Nigeria, Spacecoin is rolling out a similar solution in Cambodia and Indonesia. Starlink is already operational in Indonesia, although new customer sign-ups have been halted due to capacity constraints, while Cambodia is still navigating regulatory approvals for satellite broadband services.
Spacecoin has so far launched four satellites, forming its first complete constellation, which it plans to rely on to begin connectivity in its initial markets, including Kenya and Nigeria. Industry analysts note that this remains a modest fleet compared with Starlink’s thousands of low-Earth orbit satellites, raising questions around capacity, service reliability, and scalability as demand grows.
It is not yet clear how Spacecoin will price its packages in Kenya or when its services will go live. However, the firm said it is already scouting for local partners to help deliver internet access to end users.
“Spacecoin will provide the core technology and satellite infrastructure, and work with local partners to oversee ground operations, liaise with local authorities, or provide local user support,” the company said in a statement.
Other licensed satellite internet providers in Kenya include US-based Espace Inc, Globalstar Inc, and Omnispace LLC, the UK’s Network Access Associates Limited, South Africa’s Iridium Satellite, and local firm Viasat Limited.
Satellite internet use in Kenya was limited before Starlink’s entry, largely confined to corporates and organisations operating in remote areas with poor terrestrial connectivity.Uptake surged following Starlink’s launch, with the number of satellite internet users increasing more than 10-fold within its first year, highlighting strong pent-up demand for alternative broadband solutions.
Analysts say the entry of new players, such as Spacecoin, could reduce reliance on a single provider and improve connectivity for rural schools, health facilities, small businesses, and county governments, provided that pricing and service quality meet local needs.
