The government has introduced the Competition (Amendment) Bill, 2024, aimed at regulating market dominance in the rapidly growing digital economy.
Spearheaded by the Competition Authority of Kenya (CAK), the Bill seeks to amend existing competition laws to address market imbalances and prevent monopolistic practices, particularly within digital platforms that have gained significant traction in Kenya.
The proposed changes will affect major players like Safaricom’s M-Pesa, Google, and Meta, as well as local start-ups that rely on digital platforms for visibility and business operations. The Bill introduces a dual regulatory approach, with separate rules for traditional markets and digital markets, sparking concerns about potential over-regulation.
While the government argues the Bill will ensure fair competition, some analysts warn that stringent regulations on unilateral dominance could stifle innovation and hamper growth in Kenya’s digital economy.