The four cost categories
Licensing is the one category with real public numbers. A Tier 3 NFP licence, the right starting point for most new WISPs, carries a KES 5,000 application fee and a KES 200,000 initial licence fee, plus an annual fee of 0.4% of turnover or KES 160,000, whichever is higher. See our NFP licence tiers guide for the full breakdown, and confirm current figures on CAK's licensing page before budgeting.
Equipment scales with rollout size, not fixed. Tower and mounting, backhaul, router, CPEs and backup power, see our WISP equipment list, cost vary by supplier, brand tier and site count, so request a bulk quote scoped to your actual rollout plan rather than budgeting off a generic number.
Backhaul and bandwidth commitments are often contractual, not one-time. Most upstream providers require a minimum monthly commitment regardless of how many customers you have signed. Confirm this figure directly with your chosen upstream provider before finalising your launch budget.
Working capital is the category that actually sinks new ISPs. Licensing and equipment are costs you can plan for precisely. What catches founders out is the three to six months between the network going live and revenue covering costs, during which staff, site rent and support run whether or not you have hit your customer target. Budget for this explicitly and separately from your equipment spend.
A simple way to think about allocation
| Category | Nature of the cost | Where to get a real number |
|---|---|---|
| Licensing | Fixed, public | CAK licensing page |
| Equipment | Variable, quote-based | Request a bulk quote |
| Backhaul commitment | Recurring, contractual | Your upstream provider |
| Working capital | Ongoing, easy to underestimate | Your own six-month cash flow plan |
Source: Communications Authority of Kenya — figures are set by third parties and reviewed periodically; confirm current numbers before relying on them.