The Competition Authority of Kenya (CAK) has issued a strong warning to real estate developers and residential estate managers who have been found to restrict consumer access to Internet Service Providers (ISPs) through exclusive contracting. The regulator says such practices are not only anti-competitive but also illegal under the country’s Competition Act.
In a public notice dated 24 June 2025, the CAK revealed that through extensive market surveillance and consumer complaints, it has identified multiple instances where developers and estate managers signed exclusive agreements with select ISPs, thereby locking out competing providers from offering alternative internet services to residents.
The move is seen as a significant intervention in Kenya’s digital economy, which has seen rapid growth in internet consumption driven by remote work, digital learning, and e-commerce.
“Parties are cautioned that exclusive dealings…deny Kenyan consumers choice of services that meet their specific needs,” the Authority stated.
The CAK, established under the Competition Act CAP 504 of the Laws of Kenya, is mandated to promote and safeguard competition in the national economy, shielding consumers from unfair market conduct and anti-competitive behaviour.
The public notice points to several sections of the Competition Act that these practices violate:
Section 21(1): Prohibits conduct that prevents, distorts, or lessens competition in Kenya.
Section 21(3)(e): Makes it illegal for any party to limit or control market access and technical development.
Section 21(3)(f): Outlaws applying dissimilar conditions to equivalent transactions with trading parties, which could place them at a competitive disadvantage.
The Authority emphasized that these exclusive Internet Service Providers (ISPs) agreements effectively create monopolistic conditions within residential estates, hampering competition, service innovation, and fair pricing.
A central concern of the CAK is the restriction of consumer choice. In many of the reported cases, residents of affected estates are unable to switch to alternative ISPs, even when better pricing or superior service is available in the wider market.
“This conduct by ISPs denies consumers the benefits of competition which include fair pricing, enhanced service quality, and innovative solutions,” the Authority said.
Developers and estate managers found guilty of breaching the Act face severe penalties. The CAK stated that undertakings which infringe the law may be fined up to 10% of their previous year’s gross annual turnover in Kenya. Criminal prosecution is also on the table, with potential fines reaching up to KSh10 million and imprisonment of up to five years.
In a direct directive, the Authority instructed violators to:
Cease engaging in exclusive conduct and prevent recurrence;
Facilitate the entry of competitor ISPs in their developments.
Consumers have also been encouraged to report non-compliance via the CAK’s complaint portal: https://competition.cak.go.ke:444 or email: complain@cak.go.ke.
However, this has often been at the expense of consumer choice, pushing tenants and homeowners to accept the bundled ISP whether or not it met their expectations.
With the CAK’s clear position, developers may need to shift toward open-access infrastructure models, which allow multiple ISPs to compete for subscribers within a development. This could spark more competitive pricing and improved broadband service delivery across the country.
In a country where internet access is critical to everything from banking to education, Kenyans are increasingly seeking better broadband packages, especially in urban areas where multiple ISPs operate.
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