CAK seeks wider powers to regulate digital markets and virtual assets

The Competition Authority of Kenya (CAK) is seeking expanded powers to regulate competition in digital markets and virtual assets under the proposed Competition (Amendment) Bill, 2026.

The proposed changes are aimed at strengthening the regulator’s ability to oversee emerging digital sectors, including cryptocurrencies, stablecoins and other digital services, which are not fully covered under the current Competition Act.

CAK Director General David Kemei said the existing law has not kept pace with changes in the digital economy, making it difficult for the Authority to effectively enforce competition rules in new and fast-growing markets.

Speaking in a submission to the National Assembly’s Departmental Committee on Finance and National Planning, which is considering the Bill, Kemei said the proposed amendments would clarify the Authority’s powers, improve enforcement and align Kenya’s competition laws with international best practices.

“The Authority has experienced several enforcement challenges while executing its mandate under the current Act, including in areas such as digital markets, abuse of superior bargaining position and compliance with its decisions after investigations,” Kemei said.

“Our experience in administering the current Act has identified several operational and legal gaps that affect effective implementation.”

Kemei noted that digital platforms operate differently from traditional businesses because they benefit from network effects, access to large amounts of user data and integrated digital ecosystems, enabling them to grow quickly and strengthen their market position.

He said these advantages can make it difficult for new businesses to enter or compete effectively in digital markets.

The proposed legislation also seeks to give CAK greater authority to address the abuse of superior bargaining position, which the regulator says is not adequately covered under the current provisions dealing with abuse of dominance or buyer power.

According to Kemei, the amendments would allow the Authority to intervene where businesses use their stronger bargaining position to unfairly disadvantage suppliers, distributors, retailers, service providers or other business partners, even in markets that remain competitive.

He said such practices can discourage innovation, reduce investment, weaken small businesses and limit consumer choice if left unchecked.