Emerging urban developments around Nairobi are increasingly choosing to establish their own internet service providers (ISPs), a move that is reshaping the dynamics of Kenya’s internet market. This trend is impacting the market share of established players like Safaricom and new entrants such as Starlink, Elon Musk’s satellite internet venture.
A prime example of this shift is Tatu Telecom, the telecommunications arm of Tatu City, which has recently connected over 1,000 customers to its high-speed fibre optic network. By developing and managing its own network infrastructure, Tatu City ensures reliable and cost-effective internet services for its residents and businesses, while keeping control over service quality and pricing.
Alex Kahu, Group Head of Utilities, Rendeavour, and Deputy Country Head, Tatu City, said, ” This milestone is not just about numbers; it’s about the lives we are transforming by providing reliable, high-speed connectivity to thousands of residents, students, and businesses. As Tatu City continues to grow, Tatu Telecom will ensure that everyone is empowered to thrive in a digitally connected world.”
This approach allows new city establishments to tailor their internet services to the specific needs of their communities, providing a level of reliability and customer service that can be challenging for larger ISPs to match. Moreover, by bypassing traditional ISPs, these developments can reduce costs and pass the savings on to their customers.
The growing popularity of in-house ISPs poses a significant challenge to Kenya’s established telecom providers. Safaricom, the country’s largest telecom operator, and Starlink, which offers satellite internet services, are both keen to capture a larger share of the burgeoning market for high-speed internet in and around Nairobi. However, their efforts are increasingly being countered by these self-contained, localized networks that provide direct competition in newly developed areas.
Tatu Telecom’s open-access network model allows multiple Internet Service Providers (ISPs) to serve the city’s residents and businesses, but with a competitive edge. This model has attracted a diverse customer base, including major call centres, corporate offices, and educational institutions. With over 85,000 metres of fibre optic cable already installed and a core network operating at 10Gbps—with potential upgrades to 100Gbps—Tatu Telecom is well-equipped to meet the growing demand for fast, reliable internet within the city.
The success of Tatu Telecom highlights a broader trend among new city developments such as Konza Technopolis and Northlands City, which are also exploring in-house ISP options. These projects aim to create self-sufficient urban environments with high-quality infrastructure that includes robust internet connectivity as a cornerstone of development. By managing their own telecommunications services, these cities can ensure seamless connectivity for homes, businesses, and public institutions, while also maintaining greater control over costs and service reliability.
This strategy could potentially disrupt the plans of larger ISPs like Safaricom, which is looking to expand its footprint in the satellite internet market through a partnership with AST SpaceMobile. Safaricom’s move is seen as a direct response to the entry of Starlink, which has been making waves by offering high-speed internet to remote and underserved areas at competitive prices. However, as more city developments adopt the model pioneered by Tatu Telecom, the traditional market for these big players could shrink.
Tatu Telecom’s commitment to customer service is another competitive advantage. The company operates a 24-hour help desk, providing round-the-clock support for both businesses and residential clients. Additionally, new services such as “firewall as a service” are being introduced to enhance cybersecurity, catering to the specific needs of its growing customer base.
Beyond its immediate customer base, Tatu Telecom is extending its reach through the recently launched Fahari Link, which aims to provide affordable, high-speed internet to underserved communities in Kiambu County. This initiative could connect nearly one million people, further demonstrating the impact that localized ISPs can have on bridging the digital divide in Kenya.
As urban developments around Nairobi continue to grow, the preference for in-house ISPs could reshape the competitive landscape of Kenya’s internet service market. By focusing on cost-effective, reliable, and customizable connectivity solutions, these new cities are creating a formidable challenge to established providers like Safaricom and disruptive entrants like Starlink. This trend may well signify a shift in how internet services are delivered and consumed in the country, offering a new model for digital connectivity that prioritizes local control and community needs.
Other Own Developments
As part of Tatu City’s integrated utilities approach, Tatu Telecom’s fibre network complements the city’s other essential services, including water, power, and sewerage. Tatu City has invested over KES 40 billion in world-class infrastructure, including more than 60 km of international-standard roads, a 135MVA power capacity, and a 24/7 potable water supply system.
Tatu City recently launched Fahari Link to extend affordable, high-speed internet to underserved communities in Kiambu County, offering low-cost connections, daily internet plans and public Wi-Fi. Fahari Link aims to connect nearly one million people, including residents of Ruiru, Oaklands, Murera Ruturu and Kamiti Corner.
More than 80 local, regional and global businesses are operational or under development in Tatu City’s business-friendly location, including CCI Global, Heineken, Dormans, Kärcher, Cooper K-Brands, Grit Real Estate Income Group, Hewatele, Freight Forwarders Solutions, ADvTECH, Friendship Group and Davis & Shirtliff.
