The Competition Authority of Kenya (CAK) has issued a stern warning to landlords, estate managers, and developers over anti-competitive practices that restrict internet access for residents. This follows numerous complaints from consumers alleging that certain residential estates have exclusive agreements with specific internet service providers (ISPs), effectively locking out competitors.
In a public notice issued on Tuesday, June 24, 2025, CAK revealed that its investigations confirmed the existence of such agreements, which violate provisions of the Competition Act (CAP 504). The Authority emphasized that these deals prevent residents from accessing their preferred ISPs, leading to reduced service quality, inflated prices, and limited options.
CAK Director-General David Kemei described the situation as the creation of “mini-monopolies” within residential estates. “Such practices are unlawful and detrimental to fair competition,” Kemei stated, warning that they hinder market access, reduce innovation, and harm consumers.
Consumer rights advocates have welcomed CAK’s intervention, noting that exclusive contracts often leave residents without alternatives, especially during service disruptions. “It’s the residents who suffer most when providers fail to deliver, and no alternatives exist,” said one advocate.
According to Section 21 of the Competition Act, any conduct that prevents, distorts, or restricts competition is prohibited. Specifically, Sections 21(3)(e) and 21(3)(f) outlaw efforts to limit market access and offering discriminatory terms that give unfair advantage to specific entities.
CAK’s Director of Enforcement reiterated that such agreements contradict not only competition laws but also the spirit of the Constitution. He urged all involved parties to terminate any exclusive arrangements and ensure fair access for all ISPs.
The Authority warned that any developers, landlords, or ISPs found guilty of these practices face penalties of up to 10% of their previous year’s gross revenue. In more severe cases, violators may be fined up to Sh10 million, imprisoned for up to five years, or both.
CAK concluded by urging residents to report any instances of restricted ISP access and emphasized that competition fosters better services, lower costs, and innovation. “No Kenyan should be denied the freedom to choose their internet provider based on where they live,” the Authority affirmed.
