The Competition Authority of Kenya (CAK) has warned low-cost web firms and actual property builders in Nairobi after establishing that property builders and property managers are signing unique contracts with particular Internet Service Providers (ISPs), stopping opponents.
In a discover on Tuesday, June 24, 2025, the Authority acknowledged that it had performed market surveillance and acquired quite a few shopper complaints concerning the difficulty.
“The Authority’s mandate is to advertise and safeguard competitors within the nationwide economic system and to guard shoppers from unfair and deceptive market conduct, together with sanctioning towards foreclosures of opponents,” the discover learn.
CAK Warns Internet Service Providers and Real Estate Developers
The Authority famous that, by means of its investigations and complaints acquired, some property builders and property managers have been signing unique agreements with ISPs, thereby stopping rival firms from accessing these markets.
According to CAK, such exclusivity is unlawful beneath Section 21(1) of the Competition Act, which prohibits undertakings from participating in conduct that stops, distorts, or lessens competitors within the commerce of products or providers in Kenya.
Additionally, Section 21(3)(e) of the Act outlaws any undertakings that restrict or management market entry, technical growth, or investments.
Moreover, Section 21(3)(f) prohibits undertakings from making use of dissimilar circumstances to equal transactions with buying and selling events, placing them at a aggressive drawback.
The Authority additional cautioned ISPs and actual property builders that unique dealings deny Kenyan shoppers entry to a spread of providers that go well with their particular wants, opposite to the Constitution of Kenya and the Competition Act.
“This conduct by ISPs denies shoppers the advantages of competitors, which embrace truthful pricing, enhanced service high quality, and progressive options,” stated CAK.
CAK additionally famous that stopping competitor ISPs from accessing sure markets dangers creating monopoly-like enterprises in affected estates.
The Authority warned that undertakings discovered to infringe the Act threat being penalized as much as 10% of their previous 12 months’s gross annual turnover in Kenya.
In the case of felony prosecution, they face fines of as much as KSh10 million and imprisonment for as much as 5 years, or each.
Parties Directed to Cease Engaging in Exclusive Internet Service Contracts
CAK has directed all property builders, property managers, and ISPs participating in unique web service provision agreements which have anti-competitive results to:
- Cease participating on this unique conduct and forestall its recurrence; and
- Facilitate the entry of competitor ISPs into their developments.
Consumers are invited to report any instances of non-compliance to the Authority by means of [email protected] or by way of 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 physique established beneath the Competition Act (CAP 504). Its main mandate is to advertise and shield efficient competitors within the Kenyan market, guaranteeing the welfare of shoppers by stopping deceptive market conduct.
The CAK’s tasks embrace regulating mergers and acquisitions, stopping anti-competitive practices, and safeguarding shopper rights.
