Kenya Moves Toward Creating a National E-Commerce Regulation Unit Under New Regional Rules
Kenya’s digital economy is booming but the laws governing it are struggling to keep up. Right now if you have an issue with an online marketplace – whether it’s a refund dispute or a data privacy breach – oversight is split between the Competition Authority, the Data Commissioner and the Communications Authority.
That could soon change.
A new regional push is urging Kenya to set up a dedicated National E-Commerce Regulation Unit. This is based on a new Model E-Commerce Policy endorsed by 29 countries in Eastern and Southern Africa to harmonize how digital trade is done from Nairobi to Lusaka.
Here’s what this means for local businesses and consumers.
The Problem: " Fragmented Governance"
The driving force behind this new recommendation is the realisation that the current regulatory landscape is messy. During a recent meeting in Nairobi, experts from major regional blocs (COMESA, EAC and SADC) pointed out that having multiple regulators creates:
-
Overlapping mandates: Too many cooks in the kitchen.
-
Weak enforcement: Rules exist but policing them is difficult.
-
Business uncertainty: Startups struggle to navigate the maze of compliance.
The draft policy bluntly states that currently “Governance is fragmented, enforcement is weak and coordination with the private sector is limited.”
The Proposed Solution vs The Current Plan
This is a big shift from Kenya’s current legislative trajectory.
The Current Plan: Kenya is currently working on legislation to put e-commerce regulation almost entirely under the Competition Authority of Kenya (CAK). The CAK is even seeking to amend the Competition Act to give it more control over digital markets.
The New Proposal: The regional model suggests a special, central body. This “E-Commerce Unit” would coordinate regulation, oversee marketplaces and ensure policies are consistent across borders.
Benard Dzwanda, COMESA’s Director of Infrastructure and Logistics, noted that the final decision is with member states but the goal is to simplify things. This leaves Kenya with two options:
-
Create a new agency combining experts from ICT, data and trade.
-
Set up a highly specialized, semi-autonomous department within the CAK.
What This Means For You
If Kenya adopts this and rethinks its draft National E-Commerce Policy the impact could be big.
For Consumers:
-
Better Protection: A central body means a clearer path for complaints on refunds, delivery failures and false advertising.* Safety: More regulation on fast growing online marketplaces.
For Businesses:
-
Harmonization: If the region adopts a “Model Policy” selling to customers in Uganda or Tanzania becomes easier because the rules will be the same.
-
Clarity: Instead of dealing with three regulators you might only need to deal with one.
The Verdict
The ball is now in Nairobi’s court. As the country reviews its digital economy reforms it has to decide whether to stick with the current plan of giving more power to the CAK or shift to this new regional standard.
With digital trade growing fast a dedicated E-Commerce Unit could be the game changer that brings order to the online economy, innovation and consumer.
