Calls for stronger regulation of Kenya’s rapidly expanding digital economy dominated discussions at the inaugural Competition Authority of Kenya (CAK) Research Conference in Nairobi.
Policymakers warned that gaps in oversight are exposing consumers to online scams, misleading business practices and anti-competitive conduct.
The two- days conference brought together regulators, researchers, policymakers and private sector players to examine how Kenya can harness the opportunities presented by digital markets while safeguarding consumers and ensuring fair competition.
Speaking at the forum, National Treasury Principal Secretary Chris Kiptoo emphasized the need for a well-regulated market environment that supports innovation without compromising consumer welfare.
He reiterated the government’s commitment to building an open, fair and competitive economy where businesses can compete on equal terms while consumers remain protected from exploitation.
Kiptoo noted that effective competition and consumer protection frameworks are critical in sustaining investor confidence and supporting economic growth in an increasingly digital marketplace.
The concerns come at a time when Kenya’s digital economy is expanding rapidly, driven by growing internet penetration, mobile money adoption, e-commerce and digital financial services.
State data shows that the country’s digital economy is currently valued at $7 billion or Sh905 billion and is projected to expand to $100 billion or 12.7 trillion by 2035.
While these developments have improved access to services and created new business opportunities, regulators say they have also created fertile ground for fraudsters and unscrupulous operators.
Competition Authority of Kenya’s chairman Charles Mahinda warned that the rise of digital platforms requires regulatory approaches that can keep pace with technological change.
He argued that competition authorities must remain vigilant against emerging forms of market abuse, including unfair business practices, misleading online advertising and market concentration that could undermine competition.
Mahinda emphasized that consumer protection should remain at the center of digital market regulation, noting that trust is essential for the continued growth of online commerce.
According to conference discussions, stronger enforcement mechanisms and closer collaboration among regulators will be necessary to address challenges that cut across sectors and jurisdictions.
The authority’s director-general David Kemei said digital markets have become a major focus for the competition regulator as more economic activity shifts online.
He said that the Authority is increasingly concerned about consumer rights violations occurring in digital spaces, ranging from deceptive advertising and hidden charges to misuse of personal data and online fraud.
Kimei has previously highlighted the need to bring previously unregulated digital players under greater oversight, including e-commerce platforms, social media-based businesses and digital lenders.
He argues that existing legal frameworks must evolve to address anti-competitive behaviour and consumer protection concerns emerging in the digital economy.
The CAK chief also stressed the importance of consumer education, saying many Kenyans remain unaware of their rights when transacting online.
Increased public awareness, he said, would help consumers identify scams, seek redress and make informed choices in digital markets.
Participants argued that while innovation should not be stifled, regulators must act decisively to ensure that digital markets remain fair, transparent and safe for consumers.
