New Regional Policy Forces Kenya to Reevaluate Its Plan for Centralized E-Commerce Regulation

Kenya, 26 November 2025 - Kenya is moving toward a major shift in how it oversees online shopping and digital trade, following fresh regional proposals that encourage member states to set up specialized units dedicated to managing the fast-growing e-commerce sector.

But the new direction presents a dilemma. Kenya is currently advancing legislative changes that would give the Competition Authority of Kenya (CAK) sweeping powers to supervise all digital markets and online platforms. The regional blueprint, however, suggests an alternative model. One that could require CAK to build a specialized department or lead the country to form a completely new regulator for digital commerce.

At the moment, oversight of Kenya’s online economy is split across several institutions. Communications regulators are responsible for connectivity and digital infrastructure, competition authorities handle market conduct, and the Office of the Data Protection Commissioner manages privacy concerns. According to the regional policy, this patchwork approach has created gaps.

The framework points to overlapping mandates, weak enforcement, and limited coordination among public agencies, private sector players, and civil society groups as barriers to effective regulation.

To fix this, it proposes establishing national e-commerce units, harmonizing laws across borders, and improving consumer protections for digital buyers and sellers.

Kenya’s online marketplace has expanded rapidly, fueled by the rise of mobile payments, social commerce, and digital retail platforms. Yet regulatory systems have not grown at the same pace. Everyday issues, from refunds and complaints to advertising standards and platform accountability, still lack clear rules.