Kenya’s competition watchdog has warned landlords against signing exclusive access deals with broadband providers, saying such practices restrict consumer choice and could lead to heavy fines.
In a public notice, the Competition Authority of Kenya (CAK) said it had identified, through market surveillance and consumer complaints, that some property developers and estate managers were entering exclusive agreements with the highest-bidding internet service providers (ISPs). These deals prevented competing providers from offering alternative services – violating the Competition Act CAP 504.
CAK director-general David Kemei said such agreements limit consumer access to competitive pricing and service quality, warning that they risk creating “monopoly-like enterprises” in affected areas.
Violations of the Act could result in fines of up to 10% of an ISP’s gross annual turnover from the previous year.
The CAK ordered all landlords and ISPs to immediately cease exclusive access arrangements.
Widespread and affordable internet access is essential for economic growth. The GSMA has projected that advanced connectivity and mobile technologies will contribute US$11 trillion to global GDP by 2030 – representing 8.4% of the total.
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