The Kenyan government has threatened to regulate the cost of bandwidth, setting the stage for aggressive engagement with ISPs. The government gave operators one month to lower prices or risk regulatory measures from the Communications Commission of Kenya. Despite the SEACOM cable going live, ISPs have maintained high prices, citing contractual agreements with satellite companies, meaning that the actual cost of bandwidth on fiber has not been felt by the public.

"The ISPs are being mischievous. The cost should be lower than the $600 per megabyte; it should be $200," said Bitange Ndemo, permanent secretary in the Ministry of Information and Communication.

SEACOM is the first cable to land on the East African coast, while The East Africa Marine System (TEAMS) is yet to go live.
"We have many options but it's always good to leave the competition to push the pricing down, but if it doesn't the regulator can step in," said Ndemo.
Major ISPs like Kenya Data Networks have lowered the cost of connectivity, but its network is not available in some heavily populated areas. Access Kenya has offered to double the bandwidth for the same cost, making it cheaper for corporate clients purchasing bigger capacity.
However, Ndemo has dismissed the offer to double capacity for the same price because the majority of Kenyans cannot access affordable connectivity
"If few Kenyans could afford the bandwidth, who are you doubling for? For the economy to grow broadband has to be available to Kenyans, "added Ndemo.
"The government should exhaust all other mechanisms before opting for price regulation," said Monicah Makau, a policy and regulation consultant in Nairobi. "The government can ensure that public institutions like hospitals and colleges access lower cost bandwidth."
Ndemo's warning, meanwhile, may be inspired by public outcry over consistently higher prices for lower capacity but the corporate sector is enjoying reduced prices.
"Our company is enjoying the benefits of fiber; previously we were paying $1900 for 512/768Mb shared between six people. Today we pay $1100 for 1mb/1mb shared between two people and the latencies are 300 milliseconds. We even use Skype," said Agosta Liko, CEO of Verviant, a software outsourcing company in Nairobi.