The US company, riding on the back of one of the world’s richest people with a net worth of US$237 billion (Shillings 30.6 trillion), is betting on reducing internet costs in a segment dominated by Safaricom, Jamii Telecommunications Limited (JTL) and Zuku.

However, Safaricom wants the satellite operators to form partnerships with existing internet service providers rather than setting up as standalone companies. The company argues that their direct entry into the market poses a threat to the quality of mobile telephony networks.

“We are trying to expand our digital footprint across the country,” Dr Ruto said at the gathering, which met on Monday on the sidelines of the ongoing United Nations General Assembly in New York.

“And that brings its own competition issues. I know my CEO is here for Safaricom, but sometimes he is not very happy with me bringing other personalities like Elon Musk and others into the space,” he added during the meeting attended by Kenya’s top CEOs, including Safaricom’s Peter Ndegwa.

“But I always encourage Peter (Safaricom’s CEO) that the competition gives you a big edge and I have to admit he’s doing pretty well, he’s really stepped up his game.”

This is Dr Ruto’s first public support for Musk’s company since Safaricom in July asked the Kenya Communications Authority (CA) to reconsider its decision to grant independent licenses to satellite service providers, warning that such an arrangement could lead to illegal connections and harmful interference with mobile networks.

Mr Musk supported President Ruto in his allusion to Safaricom.

“As the President of Kenya says, Starlink is forcing local competitors to offer better services,” the billionaire said in a post on X, formerly known as Twitter.

Safaricom wants the satellite service providers to act as infrastructure providers and grant the operating license to the existing mobile network operators (MNOs).

The government owns a 35 percent stake in Safaricom and has received Sh17 billion in dividends from the telecommunications company – a position that some analysts believe would prompt the government to offer protection to the Nairobi Securities Exchange-listed company.

At the same prices, Safaricom fibre optic residential customers can now access 15 megabytes per second (Mbps), up from 10 Mbps; 30 Mbps up from 20; 80 Mbps (doubled from 40) and 500 Mbps up from 100 Mbps for Sh2,999.

The telecom operator also introduced a high-speed 1,000 megabyte (Mbps) package, down from the previous maximum of 100 Mbps, in response to Starlink, which has shaken the market since its launch in Kenya in July last year.

Kenya is one of the few African countries that have approved Starlink. Others include Nigeria, Rwanda, Mozambique, Malawi, Zambia, Benin and Eswatini.

But Starlink’s entry into Africa faces numerous regulatory hurdles in some countries. Several African markets have deemed Starlink “illegal” on their territory. These include Cameroon, Ivory Coast, South Africa, Senegal and the Democratic Republic of Congo.

Earlier this year, Cameroon ordered the seizure of Starlink equipment in ports because the provider did not have a license.

One concern for African governments is that they will have to control the content shared via Starlink.

In the case of South Africa, Musk’s birthplace, Starlink was denied a license because the company had not met the requirement to give a 30 percent share to the local population.

Recent data from the CA shows that satellite internet usage has more than tripled following Starlink’s entry into Kenya, recording 4,808 subscriptions in March, up from just 1,354 in September last year.

Safaricom currently controls the largest share of the fixed-line internet market with around 37.4 percent of all subscribers, followed by Jamii Telecoms (Faiba) and Wananchi Group (Zuku), which have a market share of around 23 percent and 19 percent respectively.