The Competition Authority of Kenya (CAK) has warned estate managers and property developers against locking out internet service providers (ISPs) from residential and commercial estates through exclusive contracts.
In a public notice issued on Tuesday, June 24, 2025, CAK Director-General David Kemei said the authority had received several complaints from consumers and conducted market checks, which revealed that some estate managers were entering into exclusive deals with specific ISPs. These deals, he said, limit competition and deny consumers freedom of choice.
“It has come to the Authority’s attention, through market surveillance and numerous consumer complaints, that property developers and estate managers are signing exclusive contracts with specific Internet Service Providers (ISPs) and restricting competing firms from offering alternative services,” the notice stated.
CAK cited Section 21 of the Competition Act, which prohibits any conduct aimed at preventing, distorting, or reducing competition in the market. This includes limiting market access, unfairly disadvantaging competitors, or applying unequal conditions to similar business transactions.
The authority warned that such exclusivity agreements deny consumers competitive benefits such as fair pricing, better service quality, and innovation. The result, it said, could be the creation of monopolies in certain estates, to the disadvantage of residents.
“Parties are cautioned that exclusive dealings, including those entered into by certain ISPs and real estate developers or estate managers, deny Kenyan consumers choice of services that meet their specific needs, contrary to the Constitution of Kenya and the Act,” the notice reads.
CAK also reminded stakeholders that those found guilty of breaching the law risk stiff penalties, including fines of up to 10% of their previous year’s gross turnover or criminal charges with fines of up to Sh10 million and up to five years in jail.
Estate managers, developers, and ISPs involved in such arrangements have now been directed to stop the anti-competitive practices and allow other ISPs access to their properties to serve residents.
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