Kenya Power and Lighting Company (KPLC) plans to connect millions of its customers in rural homes to high-speed internet as part of a new plan to capitalize on the growing use of mobile data in the country and generate new sources of income. This is a step forward for the electricity distributor, which rents fiber optic cables attached to its transmission lines from Internet service providers. Kenya Power said it will now aim directly to connect rural customers to the internet as it has expanded electricity penetration across the country by connecting millions of new homes in rural areas to its national grid. This will enable it to lead the battle for Internet customers to Telkom Kenya, Kenya Data Networks, Safaricom, Jamii Telecoms, AccessKenya, Essar Telecoms, and Wananchi Group which have dominated the Internet market.
Currently, Internet Service Providers (ISPs) rely on Kenya Power’s extensive electricity transmission network to provide them access to nearly eight million electricity customers and significantly reduce the cost of expensive infrastructure support involving the digging of trenches for laying land cables. In 2010, Kenya Power signed a 20-year lease worth $ 3.8 million (421 million shillings) with Safaricom for the use of a pair of fiber-optic cables. He also signed agreements with telecommunications companies Wananchi Group and Jamii Telecommunications, each signing five-year leases worth a total of $ 3.6 million (Sh 403 million). Kenya Power’s customer base stood at 8,278,203 at the end of June 2021, indicating a huge customer base.
Majority of Kenya’s ISPs do not have the capacity to provide downstream consumers with fiber optic bandwidth, leaving room for a few players, who can use the advantage to keep prices high. ISPs charge between 1,000 shillings and up to 5,000 shillings per month to connect customers in rural homes. Connecting consumers to the fiber optic platform requires an elaborate terrestrial network that only a few companies can build and profitably operate.
Only a few players like Telkom Kenya, Kenya Data Networks, and Safaricom have invested in the national terrestrial network and support platforms that can be used to deliver last mile connection across the country. This means that millions of Kenyans in rural areas, who expected better internet speeds and lower prices for data and voice services, have had to wait longer.
Safaricom recently announced that it will increase its fifth-generation (5G) sites to 200 by the end of the year and bring lightning-fast services to market in 2022. At the end of March, Safaricom had 5,526 2G base stations and 5,500 for 3G. Its 4G base stations rose 24.1% to 5,387, indicating that the phone company is also focusing more on fourth-generation sites. Safaricom and its closest rival Airtel Kenya are both in the race for super-fast internet, with priority given to urban centers like Nairobi.
