Kenyan ISP takes on the big time

Left: Martin Njau, CTO; George Chomba Kariuki, Network Infrastructure Manager; and Fred Macharia, CEO of VGG Connect.

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When the pandemic hit, it wasn’t just a health crisis, it was a digital wake-up call. For VGG Connect, a fibre internet provider in Kenya, it was an opportunity to step up and meet a pressing need. As communities scrambled to get online, whether to power side gigs or stay connected during lockdowns, VGG Connect was ready to deliver fast, affordable internet.

VGG Connect built its business from humble beginnings into one that competes with other, larger internet service providers (ISPs) in the market, and much of this is due to its partnership with pan-African IP transit provider, Workonline Communications. Workonline’s pan-African presence and rich ecosystem of partners bolstered and accelerated VGG’s ability to provide reliable connectivity and unlock potential for growth both nationally and globally. As a wholesale provider of IP transit, Workonline does not compete with ISPs but brings some of the world’s largest carriers, ISPs, content distribution networks (CDNs) and mobile network operators (MNOs) into local reach, driving down costs and building important peering relationships.

CEO Fredrick Macharia explains that demand for reliable internet has been growing rapidly, especially as more people rely on online services for work, education and entertainment. As the need for high-quality, affordable connectivity intensified, VGG Connect knew it needed a partner that could help fast-track the process from registration to support, while ensuring a secure and stable network. “Thanks to the experience of Workonline’s engineers and their support team, we were able to set up quickly and scale with the market demands,” says Macharia.

VGG Connect, named after the Swahili word for village ('kijiji'), understood that many people needed to be connected without breaking the bank. Macharia’s vision was clear: connect the village to the broader digital world, extending access from local communities all the way to Kenya’s capital, Nairobi.

“In the early days, it was a tangle of wires trying to connect people, but we knew the network had to be more than just patched together,” says Macharia. This sparked the decision to build a dedicated network that could offer better service quality and greater reach. “We embraced fibre-optic networks to meet the growing demand and provide a level of service that could truly support the community. Since then, it’s changed phenomenally. Our business has grown 2 000% – testimony to the connectivity provided to the community and the growth they have enjoyed in turn.

“In the past two years specifically, we’ve seen rapid evolution,” Macharia explains. “Not only have we grown into one of the top 10 ISPs in Kenya, according to recent Communications Authority of Kenya reports, but we now serve more than just retail customers. We provide bulk capacity to over 30 smaller ISPs which, in turn, serve niche communities across the country.”

This strategy of "co-opetition", working with would-be competitors instead of against them, has allowed VGG to optimise infrastructure, reduce duplication and increase resilience. “We even work with Safaricom, our biggest competitor, leveraging their backhaul services between Nairobi and regional hubs like Meru and Nakuru,” Macharia adds.

VGG's first customer, a cyber café, is still one of the more than 8 000 customers on VGG’s network, and it now keeps more than 100 businesses connected across Kenya, including schools and churches. “There is no sign of demand slowing down,” he says.

Despite increased competition from both local providers and global entrants like Starlink, VGG Connect has managed to maintain its relevance in hard-to-reach areas where fibre remains the most effective solution. “The truth is, satellite, fibre, point-to-point wireless – it doesn’t matter what the tech is, as long as it works for the end-user,” Macharia says. “What’s exciting is how complementary technologies can now come together to drive real digital inclusion.”

VGG's vision of delivery to the underserved communities has driven its strategy to embrace backhaul to keep the communities connected, providing end-to-end connectivity solutions to its customers.

Macharia is hands-on and has a background as an engineer – he understands how the network and systems fit together. “I started off my career as an engineer in the telco and ISP industry. It was always a high note for me to see a customer connection working and now that passion makes me feel that I've actually delivered something to the customer.”

At the same time, VGG Connect competes aggressively because it doesn’t have a middleman and goes directly to the cable providers. “It's been easier to implement and manage costs, which ensures that we are self-sustaining instead of relying on contractors.”

However, when they started off, VGG Connect didn’t have the direct connections it needed to aspects such as IP transit, which is why they needed a company such as Workonline. “Workonline is one of the best IP transit carriers available. It also assisted with setting up the IP block,” says Macharia.

VGG forged a strong collaboration with Workonline, leveraging the IP transit provider’s skilled engineers, experience in the region and core network.

“We now look forward to working even more closely with Workonline on Layer 2 and MPLS services,” says Macharia. “We’ve started building out last-mile services not just for our own users but also for other providers that need a trusted access partner. That’s how we’re creating new revenue streams and building deeper partnerships in the market.”

Workonline (AS 37271), founded in 2006, is one of the largest IP transit networks in Africa. The company established its first POP in Kenya in 2017, and is continually expanding its infrastructure, having most recently announced its fourth core POP in the country, having resilient presence in both Nairobi and Mombasa.

“The growth of CDNs and content caches in Nairobi has also been a game-changer,” adds Macharia. “Meta, TikTok and others are moving closer to the edge. That reduces costs and lets us pass those savings to our users. Recently, we’ve gone from paying $300 to $6 000 for Google traffic after peering changes – but we’re actively expanding our cache deployments to offset that.”

In early 2019, Workonline Communications became the first African network to deploy Resource Public Key Infrastructure (RPKI) Route Origin Validation (ROV) to improve the security of internet routing in Africa, and Workonline’s engineers continue to assist other networks in Africa in implementing RPKI ROV.

Head of Business Development at Workonline Group, Benjamin Deveaux, comments: “At Workonline, we understand Africa and its dense population, sprawling cities and the need to be fast and flexible in servicing the growing customer needs. Our commitment to building a better internet stretches to community-builders like VGG.

“We support ISPs by hand-holding and ensuring that what may seem to be an intimidating process, like setting up an internet service provider business, can be quite easy if you know how and have the skills. Our team ensures we guide our customers through the AfriNIC processes, helps in setting up the quality of network and guides in best practices for security protocols and support. Our own community building happens through forums like the ZA Peering Forum, which is held annually in South Africa, and the Internet Engineers Meetings we host in Kenya.”

Looking ahead, Macharia says the company is focused on reaching new regions across Kenya before expanding beyond borders. “We want to solidify our footprint in Mombasa, Eldoret, Nakuru and Nyeri. There’s still so much potential here before we look outward. But regional expansion is definitely on our radar.”

Part of VGG’s recipe for success is also that it works with the community, such as setting up connections for churches and schools. “It's coming from a community and giving back to the community on both sides that shows the measure of our success,” concludes Macharia.