The Competition Authority of Kenya (CAK) has issued a stern warning to landlords and estate managers who are blocking certain internet service providers (ISPs) from accessing residential estates.
In a public notice posted on X on Tuesday, June 24, 2025, the Authority stated that it had received numerous complaints from consumers.
Its investigations confirmed that some estates had entered into exclusive agreements with specific ISPs, thereby locking out competitors and denying residents the freedom to choose their preferred providers.
CAK Director-General David Kemei said such practices are not only unlawful but also harmful to fair market competition.
“This kind of market control is like creating mini-monopolies in residential areas,” said a consumer rights advocate who welcomed CAK’s intervention.
“It’s the residents who suffer in the end, especially when services break down and there are no alternatives.”
He noted that the actions deny consumers their right to choose and often lead to poor service quality and inflated prices.
The Authority cited Kenya’s Competition Act (CAP 504), which explicitly prohibits such restrictive behaviour. Section 21(1) of the Act bars any conduct that prevents, distorts, or restricts competition in trade and services.
Section 21(3)(e) specifically prohibits attempts to limit or control market access or investment opportunities, while Section 21(3)(f) forbids offering unfair or unequal terms to similar business partners if doing so places one at a disadvantage.
“These exclusive contracts between ISPs and estate managers go against both the spirit of the Constitution and the law,” said CAK’s Director of Enforcement, said CAK.
He urged all parties involved to immediately end the anti-competitive practices and allow equal access to all service providers.
The Authority warned that developers or ISPs who engage in these practices could face significant penalties. These include fines of up to 10 per cent of their previous year’s gross revenue.
In more severe cases, those found guilty may be prosecuted and face fines of up to Sh10 million, imprisonment for up to five years, or both.
He noted that residents suffer most when services are disrupted and they have no alternative providers to turn to.
CAK has directed all developers, landlords, estate managers, and ISPs involved in such deals to immediately terminate any exclusive agreements that bar competitors from accessing estates.
The Authority
emphasised the importance of allowing multiple ISPs to operate in residential
areas to ensure that consumers can make choices based on pricing, reliability,
and quality of service.
Residents have also been urged to report any instances where their ability to choose an internet provider has been unfairly restricted.
“We all benefit from competition: better services, lower prices, and greater innovation,” the Authority concluded.
“No one should be denied that simply because of where they live.”
