The Competition Authority of Kenya (CAK) has issued a stern warning to real estate developers and estate managers engaging in anti-competitive practices with Internet Service Providers (ISPs).
According to the regulator, several developers have been secretly rigging the market through exclusive deals with select ISPs — effectively holding residents digitally hostage.
A CAK investigation uncovered systematic blocking of competing ISPs from accessing estates — a practice that not only violates competition laws but has also forced thousands of Kenyans to pay premium prices for subpar internet services with no alternatives.
According to David Kemel, CAK Director-General, these illegal practices breach multiple sections of the Competition Act, including those prohibiting market manipulation and unfair trading conditions.
In addition, such practices create mini-monopolies that stifle innovation, as locked-in ISPs have little incentive to improve infrastructure or customer service. This is supported by a recent Communications Authority survey, which showed that estates with multiple ISP options enjoyed 40% faster internet speeds and 30% lower prices compared to those served by a single provider.
With middle-class Kenyans investing their life savings in homes — only to find themselves trapped with no alternative service providers — the CAK is demanding that developers and ISPs dismantle these exclusive arrangements or face the full force of competition law.
Failure to comply could lead to severe penalties, including fines of up to 10% of annual turnover and criminal prosecution, carrying penalties of up to Sh10 million or five years’ imprisonment.
The Authority has also launched a public mobilisation campaign, urging affected residents to submit evidence of non-compliance via its online portals. This decisive action is aimed at dismantling what the CAK describes as “digital monopolies” that have quietly flourished in the real estate sector — finally giving consumers the freedom to choose their preferred internet service providers.
