Table of Contents
Key Points
- Safaricom seeks approval for Kenya’s first telco-owned submarine cable to boost network resilience and cut reliance on third parties.
- Undersea cable outages push Safaricom to secure direct international bandwidth amid rising competition from Starlink.
- Safaricom expands beyond telecom, launching mobile insurance and a money market fund to diversify revenue streams.
Safaricom, East Africa’s largest telecom operator led by Kenyan executive Peter Ndegwa, is seeking regulatory approval to land and operate the country’s first submarine Internet cable owned by a telecom company, signaling an aggressive push to strengthen its infrastructure and reduce reliance on third-party providers.
The Nairobi-based telco company has applied to the Communications Authority of Kenya (CA) for a Submarine Cable Landing Rights Licence. If approved, the initiative would enhance Safaricom’s control over international bandwidth, reinforcing network resilience and supporting high-speed Internet expansion across East Africa.
Infrastructure play amid rising internet demand
Safaricom’s move comes as Kenya’s demand for reliable, high-speed Internet surges. Currently, the telecom giant sources international bandwidth from providers including SEACOM, the East African Submarine System (EASSy), the East African Marine System (TEAMS), and Telkom Kenya, which holds landing rights for five cables.
Recent undersea cable disruptions have exposed the vulnerabilities of Kenya’s current Internet infrastructure. In May 2024, outages in the EASSy and SEACOM networks caused widespread service disruptions across East Africa, including Kenya and Tanzania. These incidents prompted Safaricom to secure additional bandwidth from alternative providers, highlighting the need for greater control over its international data flow.
Competitive pressure: Starlink’s market disruption
Safaricom faces growing competition as satellite providers, especially Starlink, challenge its dominance in Kenya's Internet sector. Launched in July 2023, Elon Musk Starlink’s high-speed service in remote areas threatens Safaricom’s 37 percent share of the fixed Internet market.
In response, Safaricom is pushing for regulatory measures to ensure satellite providers collaborate with local operators. The telco also seeks to strengthen its infrastructure by securing an undersea cable, aiming to improve service reliability amid increasing market pressure.
Regional expansion and financial performance
Since it was founded in 1993, Safaricom has transformed from a telecom provider into a diversified technology and financial services giant, with its mobile money service, M-PESA, revolutionizing Kenya’s financial sector and providing millions of unbanked individuals with access to essential financial services.
Under Ndegwa’s leadership, Safaricom has also expanded regionally, achieving notable success in Ethiopia, where its subscriber base has exceeded 52 million. Despite challenges such as currency volatility and economic pressures, Safaricom reported a 15.07 percent revenue increase for the first half of 2025, reaching Ksh189.42 billion ($1.47 billion). However, its profitability was impacted by the volatile Ethiopian currency and domestic market conditions.
Beyond connectivity: New growth frontiers
Beyond telecom services, Safaricom is diversifying its revenue streams with new ventures. The company recently entered the mobile phone insurance sector, targeting Kenya’s growing smartphone market.
Additionally, it secured approval from the Capital Markets Authority (CMA) to launch the Ziidi Money Market Fund, backed by Standard Investment Bank, ALA Capital, and Sanlam Investments, bolstering its financial services footprint.
Safaricom is aiming for greater operational control with direct ownership of a submarine internet cable, enhancing service reliability and strengthening its market leadership amid rising competition and evolving regulations.
