Govt agency warns landlords against blocking internet providers

The Competition Authority of Kenya (CAK) has raised the alarm over a growing trend where some real estate developers and estate managers are blocking certain internet service providers (ISPs) from accessing residential estates.

In a public notice released on X on Tuesday, June 24, 2025, CAK said it had received numerous complaints from consumers, and its own checks revealed that some estates are entering into exclusive deals with particular ISPs, locking out competing companies from offering services to residents.

“This is against the law and harmful to competition,” said CAK Director-General David Kenei. “It denies consumers the right to choose and can lead to poor services and higher prices.”

Anti-competitive behaviour flagged

The Authority reminded the public that Kenya’s Competition Act (CAP 504) clearly prohibits such practices. Specifically, it pointed to several sections of the law:

• Section 21(1) bans actions that reduce or block fair competition in trade and services.
• Section 21(3)(e) outlaws any move to limit or control access to markets or investment opportunities.
• Section 21(3)(f) forbids offering unfair or unequal terms to similar business partners, especially when doing so puts one party at a disadvantage.

“These exclusive contracts between ISPs and estate managers go against both the spirit of the Constitution and the law,” Kenei added. “We urge all parties to stop these practices and allow open access to all service providers.”

Penalties for breaking the law

According to the notice, developers or ISPs that break the rules could face serious penalties, including fines of up to 10% of their previous year’s gross revenue. In more severe cases, they may be prosecuted and risk a fine of up to KSh10 million or imprisonment for up to five years, or both.

“This kind of market control is like creating mini-monopolies in residential areas,” said a consumer rights advocate who welcomed CAK’s warning. “It’s the residents who suffer in the end, especially when there are service breakdowns and they have no alternatives.”

What’s expected going forward

The Authority has given clear instructions to developers, estate managers and ISPs involved in such dealings:

1. Immediately stop all exclusive contracts that block other ISPs from entering estates.
2. Make it possible for different ISPs to operate in residential developments, so that consumers have options.

CAK also urged residents to report cases where they feel their choices have been limited.

“We all benefit from competition, better services, lower prices, and innovation,” they concluded. “No one should be denied that simply because of where they live.”