NAIROBI, Kenya– The Competition Authority of Kenya (CAK) has warned real estate developers, estate managers, and Internet Service Providers (ISPs) over anti-competitive agreements that deny residents access to a variety of internet services.
CAK, in a notice to the public, revealed that multiple complaints and market surveillance had uncovered widespread practices where property developers and estate managers sign exclusive contracts with specific ISPs, blocking competitors from offering services within their estates.
“This conduct by ISPs denies consumers the benefits of competition which include fair pricing, enhanced service quality, and innovative solutions,” read the notice in part.
Citing Section 21 of the Competition Act, CAK declared such practices unlawful, noting that they distort market access and disadvantage other players.
The Authority emphasized that vertical agreements between estate managers and ISPs, which exclude other providers, breach fair competition rules.
“Parties are cautioned that exclusive dealings, including those entered into by certain ISPs and real estate developers or estate managers, deny Kenyan consumers choice of services that meet their specific needs.”
Entities found guilty of violating the law risk fines of up to 10% of their annual gross turnover or criminal penalties that may include up to Sh10 million in fines and five years in prison.
The Authority has directed all parties involved in such restrictive agreements to immediately cease the conduct and facilitate access for competing ISPs.
