The Communications Authority of Kenya has stepped forward to clarify its regulatory position amid growing government efforts to dig deeper into digital markets, stressing that its role encompasses enforcing competitive fairness, enhancing consumer protection, and supporting revenue generation from the expanding digital space.
The Authority emphasized its readiness to harness upcoming legislation particularly the Competition (Amendment) Bill 2024 that will grant it legal powers to oversee digital platforms, digital lenders and big tech companies operating in Kenya.
CAK noted that the surge in complaints related to unfair practices in digital lending and marketplace dominance necessitates strengthened legal tools to monitor and curb potential abuse of market position. Its Director General, David Kemei, highlighted that the bill, once enacted, will enable collaboration with other agencies to rein in misconduct in online lending and other digital sectors.
CAK’s position aligns with its 2023–2027 strategic plan, which aims to collect Sh117.4 billion over five years through fostering competitive markets, ensuring affordable ICT access, and empowering consumers to make informed choices.
This strategy is built on the vision of “digital access for all” and underscores the Authority’s responsibility to manage tariff regulation, licensing, fair competition, and consumer safeguards across the sector.
As digital economy contributions to GDP escalate with projections exceeding Sh600 billion by 2028 and an expected Sh150 billion boost in tax revenues the CAK’s regulatory role becomes even more critical in ensuring sustainable growth and public benefit.
The draft Competition (Amendment) Bill includes expanded definitions of “digital activities” and introduces the concept of “superior bargaining position,” addressing conduct beyond traditional market share dominance.
It targets practices such as unilateral contractual changes, unreasonable delay in supplier payments, and shifting operational risk onto smaller players measures aimed at reigning in both multinational digital giants like Google, Meta and Amazon and dominant local platforms. CAK has opened public consultations on the amendments, inviting stakeholder input to shape regulations that reflect Kenya’s digital market realities.
Critics, including international tech lobby groups, warn that overly stringent oversight could stifle innovation and discourage investment. They argue that placing global tech firms under domestic-style scrutiny akin to banks may lead to ambiguity and uneven application of rules in a market increasingly dependent on digital services.
CAK acknowledged these concerns but maintains that balanced, targeted regulation is necessary to protect Kenyan firms and consumers while preserving innovation in the digital economy.
In tandem with revenue and regulatory aims, CAK has also taken steps to support tax compliance initiatives. In collaboration with the Kenya Revenue Authority, the Authority is enforcing IMEI-based registration of imported and assembled mobile devices ensuring that devices connect to networks only after tax compliance is verified. This system is designed to shut out grey-market imports and boost collections from mobile hardware transactions.
As Kenya’s digital ecosystem deepens with fintech, digital lending, platforms and satellite internet services gaining ground CAK insists its evolving mandate is key to safeguarding competition, consumer rights and revenue streams.
By pushing for the swift passage of the Competition Amendment Bill, the Authority is signalling its intent to wield robust tools to regulate digital markets, address unfair dominance, and ensure the digital sector remains inclusive, fair, and fiscally contributory to national development.
Written By Ian Maleve
