Safaricom, Kenya’s largest telco, has expanded internet speeds on its home fibre packages without increasing monthly prices, improving baseline performance just as lower-cost competitors move in on its core customers, putting pressure on Safaricom’s lead in Kenya’s fixed broadband market.
While mid-tier packages increase from 30 Mbps to 60 Mbps and from 80 Mbps to 150 Mbps, the operator’s lowest plan now offers 40 Mbps, up from 15 Mbps. Prices for its 500 Mbps and 1 Gbps tiers continue at KES 12,500 ($96) and KES 20,000 ($154), while KES 3,000 ($23), KES 4,100 ($31.5), and KES 6,300 ($48.5).
In an effort to protect its market share in a market that is becoming more and more price and speed sensitive, Safaricom upgraded all of its most popular plans to lower the effective price per Mbps without lowering tariffs.
According to data from the Communications Authority, Safaricom holds a 34.9% market share in Kenya’s fixed internet industry. Wananchi Group has 11.1%, and Jamii Telecommunications has 20.1%. 34% of subscriptions are from smaller providers including Poa Internet, Ahadi Wireless, and Vilicom, suggesting that the industry is becoming more fragmented outside of the top three.
The majority of households are located in the lower and mid tiers, where switching costs are minimal, and here is where competitive pressure is greatest. Airtel Kenya undercuts Safaricom’s entry point by pricing 15 Mbps at KES 2,000 ($15.4) and 100 Mbps at KES 5,000 ($38.5).
Despite having limited coverage, more recent entrants like Savanna Fibre have pushed further, delivering 100 Mbps at KES 2,000 ($15.4), setting a new standard for price per Mbps.
In that environment, Safaricom’s earlier 15 Mbps plan at KES 3,000 ($23) had become hard to defend. In comparison to more recent packages, it performed poorly on a cost-per-Mbps basis and had trouble with multi-device households.
By increasing speeds rather than lowering costs, Safaricom is attempting to bridge that gap while safeguarding revenue. Customers won’t need to upgrade or switch for better speed because a 40 Mbps connection puts its base tier into a range that enables streaming, video calls, and daily usage across multiple devices.
The mid-tier adjustments make sense since, between 60 Mbps and 150 Mbps, Safaricom has gotten closer to competitors’ offerings in the market sector where the majority of consumption occurs, increasing competitive pressure without starting a wider pricing war.
The mid-range of the market is the main battleground because top-end plans have not changed due to the low demand for 500 Mbps and 1 Gbps connections.
Expectations regarding consistency are raised by higher claimed speeds, particularly during peak times when switching decisions are heavily influenced by network performance.
Safaricom will improve its position without lowering rates if it can maintain those speeds throughout its network. If not, rivals who are already engaged in price competition have a more obvious opportunity to attract clients.
