NAIROBI, Kenya – Online traders in Kenya will soon be required to register under a national digital identification system, as the government moves to tighten regulation of the booming e-commerce sector and restore consumer confidence.
The Ministry of Investments, Trade and Industry has proposed the creation of a digital seller identity system and a national e-commerce trustmark, according to a new draft policy aimed at strengthening oversight of digital marketplaces.
The initiative seeks to curb rising online fraud, improve buyer protection, and ensure sellers are verified and accountable.
“This would reduce the cases of clients not receiving exactly what they ordered,” the ministry said in the draft policy document.
The digital seller ID system will use technology to verify the identity of individuals and businesses operating online stores.
Proposed verification methods include linking traders to government-issued IDs, using biometric facial recognition, selfie verification, and screening against fraud watchlists.
Verified Sellers to Display Trustmark
Once verified, online stores will be allowed to display a trustmark — a visible logo or badge signaling that the business complies with regulatory standards related to privacy, security, and fair trading.
The trustmark will act as a seal of approval for consumers, assuring them that the seller is legitimate and operates within the law.
“Institutionalise a national e-commerce trustmark and digital seller identity system to enhance consumer trust in local platforms through verified seller credentials, dispute resolution mechanisms, and accountability measures,” reads the proposal.
To boost compliance and growth, the government also plans to create a national e-commerce innovation and investment fund.
This fund will support startups and small businesses, especially in key areas like logistics tech, online marketplaces, and digital payment systems.
The policy comes amid growing complaints from online shoppers over scams, counterfeit products, non-delivery of goods, and fake seller profiles.
It also seeks to address unethical practices like price fixing and poor coordination among regulators that currently hinder effective monitoring of the digital economy.
With e-commerce in Kenya continuing to expand — especially through social media, local online marketplaces, and mobile apps — the government hopes the new measures will create a safer, more transparent environment for both consumers and traders.
The Ministry has not yet announced when the regulations will take effect, but stakeholders in the digital trade space are expected to be engaged for public input before implementation.
