CAK says Kenya open to new players in telecommunication spaces

The Competition Authority of Kenya (CAK) will not obstruct the entry of new tech giants into the country’s digital market scene.

CAK Director General David Kemei underscored the authority’s proactive approach in regulating new players like Starlink into Kenya’s digital and telecommunication space.

“We will be looking at the competition issues when regulating such organizations, but we need to approach Starlink with a big picture in mind - ensuring they expand the market, improve service quality, and lower prices for consumers,” said Mr. Kemei.

According to Prof. Reena das Nair, Executive Director of the Competition, Regulation and Economic Development (CCRED), digital platforms pose issues globally which need to be elaborated on than dismissed.

“The issues around digital platforms and these large tech giants are universal, such as network effects where the first mover can take the whole market, leading to exclusionary effects for others trying to join the platform,” she stated.

“Kenya has done a lot to understand these problems by sharpening their tools to deal with some of these digital platform competition concerns.”

The two spoke on Thursday during the 11th annual CAK Symposium, which also focused on agriculture, a sector significantly impacted by rising input costs and low consumer purchasing power.

Boniface Makongo, Director of Competition at the COMESA Competition Commission, noted that collaboration between the regional body and countries like Kenya, Malawi, Uganda, and Tanzania is crucial in addressing challenges around fertilizer and seed markets.

He further emphasized the need for clear regulations and the enforcement of competition laws to protect developing markets.

The symposium reinforced CAK’s focus on adapting its regulatory framework to keep pace with technological and market changes while amending buyer power regulations and strengthening digital market oversight.