Kenya Pipeline Company’s (KPC) new high-capacity fibre link between Mombasa and Nairobi is set to transform the local internet market with its innovative pricing model, pushing major players in the sector to either adapt or withdraw.
This fibre optic cable represents a significant leap forward in Kenya’s digital infrastructure and connectivity ambitions. It aims to deliver high-speed gigabit internet and exceptional reliability to homes, businesses, and community networks, greatly enhancing service quality in Kenya’s two largest cities.
Tier 3 Internet Service Providers (ISPs), such as Syokinet Solutions, will benefit from this development by gaining direct access to bandwidth at lower costs. Geoffrey Shimanyula, the Business Acceleration Specialist at EKEKO EA Ltd, explained that smaller providers will be able to bypass the third-party costs that typically drive up consumer prices.
“In the future, many smaller providers will buy bandwidth from Kenya Pipeline Company’s high-capacity fibre for as little as Sh200 per megabyte. They will repackage it, add a small margin, and offer it to their end-users,” Shimanyula said.
Shimanyula noted that lower-tier ISPs usually purchase bandwidth from Tier 2 or Tier 1 providers due to their limited infrastructure. “Their reliance on higher-tier providers for transit increases their operational costs, which are then passed on to customers,” he said. “These ISPs are crucial for local and remote internet access but often at higher costs compared to Tier 1 and Tier 2 providers.”
At the launch event at KPC’s Nairobi headquarters, Managing Director Joe Sang, who was mistakenly identified as the Kenya Ports Authority (KPA) Managing Director on Monday, assured users of the fibre optic service that they would receive a 99.99% service level agreement.
He described the launch as a significant milestone for KPC, aligning with its long-term business diversification strategy. “Our partnership with Syokinet will enhance connectivity and provide high-speed internet services between Nairobi and Mombasa. This is a major advancement in Kenya’s digital infrastructure and supports the government’s Digital Superhighway agenda, driving the country’s transformation, job creation, and economic growth,” Sang remarked.
He expressed confidence in the security and resilience of the fibre optic cable infrastructure, noting that KPC anticipates further expansion and plans to onboard more local ISPs to enhance connectivity. “Our cables run securely alongside the pipeline right-of-way, providing inherent protection and minimal downtime.
This strategic asset enables us to offer carriers highly reliable and low-latency connectivity, and we expect this new service to generate additional revenue for KPC,” Sang stated. “We are actively engaging with more partners to maximize the utilization of our infrastructure for the benefit of all Kenyans,” he added.
Fiona Asonga, CEO of Technology Service Providers of Kenya, highlighted that the introduction of the KPC fibre optic network, combined with the arrival of Elon Musk’s Starlink, offers ISPs more opportunities to reinvent their business models. She noted that the lower rates provided by KPC’s fibre optic infrastructure would enable ISPs to build and lease their own infrastructure, rather than relying on the high rates charged by others.
Syokinet CEO Ian Kasyoki praised KPC for deploying “the most robust, scalable, and reliable fibre optic cable in the region,” emphasizing that the collaboration marks significant progress in expanding access to world-class digital services.
Elon Musk’s satellite internet firm, Starlink, has disrupted the network market with competitive pricing and improved speeds, causing concerns among local players. Safaricom, the country’s leading telco, has lobbied the Communication Authority of Kenya (CA) to restrict foreign satellite internet providers, requesting that they operate in Kenya only through local licensees. However, the public has largely supported market liberalization, with many using social media to criticize Safaricom for opposing competition.
