A new internet service provider, Savanna Fibre, has entered Kenya's stagnant broadband market, offering high-speed data at a significantly lower price than established rivals. The company's 100 megabits per second (Mbps) plan costs KES 2,000 ($15.40), a move that undercuts the market leader, Safaricom, by 80% in terms of pricing for an equivalent offering. Savanna's aggressive pricing targets a value gap in Kenya where connectivity costs have remained high.
Savanna's entry-level plan costs KES 20 ($0.15) per Mbps, compared to Safaricom's KES 200 ($1.54) per Mbps. The disparity extends to the highest speed tiers, with Savanna's 1 Gbps plan priced at KES 10,000 ($77) compared to Safaricom's KES 20,000 ($154).
Market leader Safaricom currently holds a 35.6% share with over 815,000 subscriptions, while Safaricom's entry-level 15 Mbps plan costs KES 3,000 ($23). Savanna's strategy mirrors Starlink's disruptive entry, which has forced local internet service providers to increase speeds.
Savanna's limited footprint remains a logistical challenge, unlike Safaricom's widespread urban network. The market now faces a brutal race to the bottom, with Safaricom and JTL (Faiba) forced to choose between protecting legacy margins or slashing prices to stop a mass exodus of high-value subscribers.
Savanna Fibre's aggressive pricing is a clear signal that Kenyan internet users will no longer accept high costs for internet access. When Safaricom's CEO says nothing, that means the company is preparing for a significant price drop – and that's bad news for its profit margins.
