Safaricom Hits Major Broadband Milestone as Rivals Intensify Challenge

Kenya’s Safaricom has become the first provider in the country to surpass one million fixed broadband subscribers, reaching 1,024,950 by June 2026. This achievement validates Safaricom’s volume-led strategy of offering affordable internet packages alongside its mobile services.

From Mobile Leader to Broadband Powerhouse

The company leveraged its existing dominance in mobile subscriptions (almost 70% market share) and mobile money transfers (88%) to quickly build a substantial broadband customer base. By integrating home internet into comprehensive service bundles, Safaricom created high switching costs for customers who would lose both their connection and bundled benefits.

Strategic Pricing & Market Response

Safaricom initially prioritized market share over short-term profits, doubling fibre speeds across most plans in April 2026 without raising prices. For example, the 15 Mbps plan increased to 40 Mbps for KES 3,000 ($23) per month, while the 30 Mbps tier doubled to 60 Mbps for KES 4,100 ($32). This aggressive pricing put downward pressure on average revenue per user.

Emerging Challenges Ahead

Despite this success, Safaricom faces structural headwinds:

• Consumer backlash over data throttling policies
• Increased competition from newly recapitalised rivals
• High barriers to entry deterring major global players