The Competition Authority of Kenya (CA) has sounded the alarm over landlords and estate managers who are locking out internet service providers (ISPs), effectively stripping residents of their right to choose their preferred internet provider.
In a public notice issued Tuesday, the Authority said it had received a flood of complaints from residents across the country.
Investigations revealed that some estates had signed exclusive deals with certain ISPs – agreements that barred competing providers from accessing the premises. These contracts have created monopolies within estates, limiting consumer options and stifling market competition.
CA Director-General David Kemei condemned the practice, warning that such conduct violates the Competition Act (CAP 504), which prohibits any arrangement that restricts or distorts fair competition.
“These exclusive contracts between ISPs and estate managers go against both the spirit of the Constitution and the law,” Kemei stated.
The CA’s Director of Enforcement backed this stance, noting that these exclusive agreements not only breach legal provisions but also deny residents access to better services and competitive pricing.
The Authority cited Section 21(1) of the Competition Act, which bars anti-competitive conduct, and highlighted Section 21(3)(e) and (f), which specifically outlaw practices that limit market access or unfairly favour one business over others.
Landlords Face Fines for Locking Out Internet Providers
As part of its crackdown, CA has ordered all developers, landlords, estate managers, and ISPs engaged in these deals to immediately terminate them and open access to all licensed service providers.
Non-compliance will attract stiff penalties. Offending companies risk fines of up to 10% of their previous year’s gross revenue. In more serious breaches, individuals may face criminal charges punishable by a fine of up to Ksh10 million, a five-year prison term, or both.
The Authority emphasized that residents suffer most under such exclusive arrangements, especially when services fail and no alternatives are available. It urged affected consumers to report any instance where they are blocked from switching providers.
“We all benefit from competition: better services, lower prices, and greater innovation. No one should be denied that simply because of where they live,” the CA said.
Through this action, the CA aims to protect consumer rights and foster a competitive, accessible internet market for all Kenyan households.
