Kenya calls for new regulatory approaches to tackle competition and consumer challenges

03 October 2025

The Competition Authority of Kenya has emphasised the urgent need for innovative regulatory strategies to effectively address emerging competition and consumer protection issues within the rapidly evolving digital economy.

The remarks were made during the 19th Annual Competition Law, Economics, & Policy Conference held in Cape Town, South Africa, organised by the Competition Commission of South Africa.

Speaking on the panel, Director-General Kemei David highlighted that traditional regulatory tools are increasingly inadequate for markets such as online retail and digital finance. He stressed that authorities must adopt non-conventional approaches — focusing on innovation, investment trends, and future pricing models — to ensure fair competition and safeguard consumer welfare in these dynamic sectors.

Kemei underscored Kenya’s proactive efforts, including conducting market inquiries and studies to understand market structures and identify risks. He cited a notable 2015 study that led to a significant reduction in USSD charges — from KES 10 to KES 1 — benefiting millions of consumers through a 90% price drop.
In terms of policy evolution, Kenya is currently amending its Competition Act to extend regulatory oversight to digital activities. The reforms aim to foster innovation while curbing the dominance of large digital platforms that could stifle competition.

Kemei also highlighted the importance of regional collaboration among African regulators to combat anti-competitive practices that cross borders. He acknowledged existing challenges, such as insufficient legal safeguards for digital content, fragmented regulations, and a lack of predictability that discourages cross-border investment.

To bolster Africa’s digital economy, he proposed several strategic measures: harmonising intellectual property laws across the continent; establishing a continental IP rights registry; adopting multi-agency enforcement frameworks; strengthening enforcement mechanisms; promoting regional cooperation through the African Continental Free Trade Area (AfCFTA) Competition and Digital Trade Protocols; and creating regulatory sandbox environments to pilot new technologies in collaboration with sector regulators.

Kemei emphasised that these initiatives are vital for unlocking Africa’s digital potential, protecting content creators, and fostering innovation-driven growth across the continent. By adopting such forward-looking regulatory frameworks, Kenya and its African partners aim to ensure a competitive, inclusive, and sustainable digital economy.