Amazon.com Inc (NASDAQ:AMZN), the US technology and e-commerce group founded by Jeff Bezos, has officially selected Kenya as the location for its first African satellite Internet ground station through its Project Kuiper network and intensifying competition with Elon Musk’s Starlink across the continent.

The facility, known as a satellite gateway or ground station, will serve as a critical link between Amazon’s low Earth orbit (LEO) satellites and terrestrial Internet networks, enabling data transmission between users and the company’s planned satellite constellation, Techpoint Africa writes.

Amazon, through its local subsidiary Amazon Kuiper Kenya Limited, has applied to the country’s Communications Authority (CAK) for a licence to operate communications infrastructure. Regulatory approval would pave the way for the company to launch satellite broadband services in Kenya as Project Kuiper, rebranded for consumers as Amazon Leo, moves towards commercial deployment.

“For Kenya, this is more than just another foreign tech investment. It places the country at the centre of a fast-moving global connectivity battle, where satellite Internet is becoming a serious alternative to fibre and mobile networks, especially in rural and underserved regions,” Techpoint Africa writes.

“For users, it could eventually mean faster Internet access in remote areas, improved digital inclusion, and cheaper backhaul for mobile operators. For government, it strengthens Kenya’s positioning as a regional tech hub while also raising regulatory questions around data sovereignty and infrastructure control.”

Conventional broadband networks, which rely on fibre-optic cables and mobile towers, have struggled to reach remote and low-density areas due to high deployment costs, leaving large segments of the population underserved.

LEO satellite systems offer an alternative by delivering connectivity directly from space to user terminals on the ground, enabling faster speeds and lower latency compared to legacy satellite technologies.

Amazon’s satellite broadband initiative is designed to deliver high-speed Internet connectivity globally through a network of more than 3,200 low Earth orbit satellites. The project is widely viewed as Amazon founder Jeff Bezos's response to the Starlink network, which has already established operations in several African markets, including Kenya. Starlink, owned by billionaire Elon Musk's SpaceX, is now the country’s eighth-largest Internet service provider with more than 22,000 subscribers.

In Sub-Saharan Africa, internet penetration stands at about 36%, according to the ITU estimates. In Kenya, penetration is estimated at about 48%, with more than 27mn users out of a population of over 56mn, based on DataReportal and CAK estimates.

Kenya represents a strategic entry point in the continent’s fast-growing digital economy, where demand for high-speed Internet remains constrained by gaps in traditional infrastructure, particularly outside major urban centres. Starlink has been operating in the country since 2023 and has steadily expanded its customer base among businesses, households and rural users seeking alternatives to conventional Internet services.

Amazon applied in April for a Network Facilities Provider (NFP) Tier 2 licence to operate in Kenya, valid for 15 years. The licence carries an upfront cost of around $115,000 and requires at least 30% local ownership within three years of approval, reflecting Kenya’s push to ensure foreign telecom entrants embed local participation and submit structured rollout plans.

The decision to establish a ground station represents the first major physical infrastructure commitment by Amazon in Africa. The move comes as global technology companies increasingly view the continent as a key growth market for broadband connectivity, driven by rising Internet demand, expanding digital economies and persistent gaps in network coverage.

Meanwhile, Starlink has expanded rapidly across Africa and is now active in markets including Nigeria, Rwanda, Mozambique, Malawi and Zambia, according to company and regulatory data.

It has also partnered with Airtel Africa Plc (LSE:AAF), the telecom operator majority-owned by Bharti Airtel Ltd (NSE:BHARTIARTL), which in March conducted a pilot test in Kenya with Starlink to trial satellite-to-mobile connectivity.

The test was conducted in remote “no connectivity” zones where traditional mobile networks do not reach, ahead of a planned rollout across Airtel’s 14 African markets, including Nigeria, Uganda, Tanzania, Zambia and the Democratic Republic of Congo (DRC).

The trial demonstrated basic data and messaging services, including WhatsApp calls and messaging, maps navigation, Facebook Messenger, and financial transactions through the Airtel app.