The Competition Authority of Kenya (CAK) has warned low-cost internet companies and real estate developers in Nairobi after establishing that property developers and estate managers are signing exclusive contracts with specific Internet Service Providers (ISPs), preventing competitors.
In a notice on Tuesday, June 24, 2025, the Authority stated that it had conducted market surveillance and received numerous consumer complaints regarding the issue.
“The Authority’s mandate is to promote and safeguard competition in the national economy and to protect consumers from unfair and misleading market conduct, including sanctioning against foreclosure of competitors,” the notice read.
CAK Warns Internet Service Providers and Real Estate Developers
The Authority noted that, through its investigations and complaints received, some property developers and estate managers have been signing exclusive agreements with ISPs, thereby preventing rival companies from accessing these markets.
According to CAK, such exclusivity is illegal under Section 21(1) of the Competition Act, which prohibits undertakings from engaging in conduct that prevents, distorts, or lessens competition in the trade of goods or services in Kenya.
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Additionally, Section 21(3)(e) of the Act outlaws any undertakings that limit or control market access, technical development, or investments.
Moreover, Section 21(3)(f) prohibits undertakings from applying dissimilar conditions to equivalent transactions with trading parties, putting them at a competitive disadvantage.
The Authority further cautioned ISPs and real estate developers that exclusive dealings deny Kenyan consumers access to a range of services that suit their specific needs, contrary to the Constitution of Kenya and the Competition Act.
“This conduct by ISPs denies consumers the benefits of competition, which include fair pricing, enhanced service quality, and innovative solutions,” said CAK.
CAK also noted that preventing competitor ISPs from accessing certain markets risks creating monopoly-like enterprises in affected estates.
The Authority warned that undertakings found to infringe the Act risk being penalized up to 10% of their preceding year’s gross annual turnover in Kenya.
In the case of criminal prosecution, they face fines of up to KSh10 million and imprisonment for up to five years, or both.
Parties Directed to Cease Engaging in Exclusive Internet Service Contracts
CAK has directed all property developers, estate managers, and ISPs engaging in exclusive internet service provision agreements that have anti-competitive effects to:
- Cease engaging in this exclusive conduct and prevent its recurrence; and
- Facilitate the entry of competitor ISPs into their developments.
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Consumers are invited to report any cases of non-compliance to the Authority through [email protected] or via the E-Filing Portal at https://competition.cak.go.ke:444/.
About the Competition of Authority of Kenya
The Competition Authority of Kenya (CAK) is a regulatory body established under the Competition Act (CAP 504). Its primary mandate is to promote and protect effective competition in the Kenyan market, ensuring the welfare of consumers by preventing misleading market conduct.
The CAK’s responsibilities include regulating mergers and acquisitions, preventing anti-competitive practices, and safeguarding consumer rights.
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This title is stupidly misleading….amateur writers should be supervised.
As much as this is a good precaution to ensure customers have a range of providers to select from depending on the need, CAK should also consider the pricing by other internet providers. One provider cant offer service abd charge ksh 3000 while the same package and is available for ksh 1500 from another provider. That means one is taking advantage and overcharging clients without being held accountable.