Elon Musk’s space exploration company, SpaceX, has canceled two contracts with Kenya valued at over Ksh 10 billion. The deals, which were expected to enhance technological collaboration between Kenya and the U.S., were terminated for undisclosed reasons.
According to sources, the contracts were linked to SpaceX’s satellite internet service, Starlink, which had recently entered the Kenyan market. The cancellation comes as a blow to Kenya’s ambitions of expanding its space and communication technology infrastructure.
The Kenyan government had anticipated that these agreements would boost internet connectivity, especially in remote areas, and strengthen the country’s position as a regional technology hub. However, with the contracts now scrapped, the future of Kenya’s collaboration with SpaceX remains uncertain.
Neither SpaceX nor Kenyan authorities have provided details on the specific reasons behind the cancellation. Analysts speculate that regulatory challenges or financial considerations could have played a role in the decision.
This development raises concerns about the stability of foreign investments in Kenya’s tech sector and highlights the need for clear policies to attract and retain global tech giants in the country.
