BY MOSES GITAU
Starlink was introduced into the Kenyan market in July 2023
The Consumer Federation of Kenya (Cofek) has given local telco service provider Safaricom a 24-hour ultimatum to come clear of claims that it has canceled M-pesa payments to Starlink Internet that is associated with US billionaire Elon Musk or risk court action.
In a letter to Safaricom CEO Mr Peter Ndegwa, Cofek Secretary-General Mr Stephen Mutoro notes that the claims are disturbing and fly in the face of fair business practices and the Competition Act.
“Kindly but urgently, confirm if this is the right position. Should it be in the affirmative, we demand that you rescind the decision with immediate effect,” said Mr Mutoro adding; “take note that we will commence legal proceedings against yourselves and line government agencies.”
This comes after the telco asked the government to reconsider its decision to grant licenses to satellite internet providers.
The telco asked the Communications Authority of Kenya (CA), the industry regulator to review its decision to grant independent license to satellite service providers warning that such an arrangement could allow illegal connections and harmful interferences to mobile banking.
According to Mr Mutoro, sufficient reasons for deactivating and suspending any M-pesa pay bill or till number must be provided.”
Mr Mutoro notes that Starlink’s right to be heard is non-negotiable and that Article 27 (4) of the constitution which abhor discrimination against competition has not been suspended.
“Discriminating against competition is not only unethical but outright illegal. Consumer rights under Article 46 of the constitution do not allow Safaricom PLC to deny directly or indirectly any such consumer service in the guise of self-preservation,” noted Mr Mutoro.
The Cofek boss says that by purporting to punish Starlink, which is not in competition with Safaricom, the country’s largest telco services provider is punishing Kenyan consumers “for selfish gain.”
“Safaricom PLC is demonstrating that it does not deserve an iota of the immense consumer brand loyalty that has been extended to it by the consumers over the years.”
But on August 28, 2024, in post on its X account, the telco refuted the claims that it has cancelled the payment of Starlink Internet while replying to an X user who posted on his account: “War is War.
Safaricom has cancelled the payment of Starlink internet via M-Pesa.”
Responding to the tweet, Safaricom posted: “This isn’t factual, the option is still there. Please reach out to us in case of any challenges faced.”
Starlink was introduced into the Kenyan market in July 2023. It offers high speed and coverage to remote areas where local internet service providers may not reach.
Starlink, powered by SpaceX, uses a network of satellites in low Earth orbit to deliver high-speed internet with low latency, making it ideal for rural and underserved regions.
The competition between Starlink and local ISPs increased following the recent discounted offers in Kenya.
“Starlink now offers Starlink kit rentals throughout Kenya. Rent Starlink for Sh1,950 per month or purchase for Sh45,500,” the company announced in a statement.