Gov’t wants all cybercafés fitted with CCTV surveillance, users identified

The government seeks to license all internet cafés in Kenya afresh and introduce new controls in what it says are efforts to streamline regulation and spur the growth of the local ICT sector.

Currently, the Communications Authority of Kenya (CA) licences cybercafés under the Public Communication Access Centre (PCAC) category.

In new proposals the regulator published in December, CA notes the government’s initiative to provide free public Wi-Fi hotspots across Kenya through the ICT Authority but also observes “a very large number of entities operating as cybercafés countrywide that pose regulatory challenges that closely mirror those of the ordinary vendor licence category.”

In its Review of the Telecommunications Market Structure 2024, the communications watchdog proposes that PCACs providing internet browsing services be licensed under the ‘Internet Cafés’ category.

The cafés will be required to have, among others, logging-in software – which records events, actions, and messages that occur when a computer program is running – and CCTV surveillance on the premises.

“This licence shall be re-introduced, but as a CLASS Licence with licence terms and conditions set by the authority including provisions for record keeping, logging-in software, CCTV surveillance, as well as identification of persons accessing the service point/facility,” CA says.

President William Ruto’s government plans to install 25,000 public Wi-Fi hotspots, set up 1,450 ‘Digital Village Smart Hubs and Studios’ and three data centres as part of its ‘National Digital Superhighway Programme’.

“The current review is therefore aimed at removing certain market barriers identified over time, in line with the authority’s mission of enabling regulation,” CA adds.

Cybercafé use was popular in the 2010s among digital-savvy Kenyans for internet browsing and other services like document processing.

However, their use has declined considerably due to increased internet penetration in urban and rural areas and the rise of smartphones.

In 2023, for instance, CA data showed that for the first time, the number of smartphones used in the country was higher than that of feature phones.

The regulator said there were 32,631,924 smartphones in Kenya between July and September 2023, while feature phones were 32,040,928.

At the same time, CA seeks to tighten rules governing the sale of low-power telecommunications terminal equipment such as mobile phones and vehicle tracking devices.

Currently, selling these gadgets requires a Vendor Licence from CA, which is free of regulatory fees.

“Despite the ease of entry in this market segment, most vendors operate without a Licence, oftentimes importing and selling sub-standard communication devices, thereby raising several concerns due to non-compliance with local standards, such as the requirement for a unique International Mobile Equipment Identity (IMEI),” CA says.

“The large number of vendors makes it nearly impossible to control the sale of substandard devices in the market,” it adds

As such, the authority wants a Telecommunication Equipment Distributor (TED) licence introduced for all wholesale suppliers and importers of communications equipment, and foreign manufacturers that wish to distribute devices locally.

“Manufacturers domiciled in Kenya will, however, not be required to obtain any licence, but will be required to sell to only licensed TEDs. Any local manufacturer that wishes to distribute communications equipment to local vendors will be required to obtain a TED Licence,” CA says.

TED (distributor) licences will only cover equipment supply and sale, and the provision of after-sales support. It will not include installation and maintenance activities.

Per the proposals, every distributor will ensure all equipment they sell has been approved; importers shall ensure all devices they import or manufacture comply with industry standards in Kenya.

CA also wants to convert the current vendor licence into a ‘CLASS’ Communications Equipment Vendor (CEV) Licence for mobile device sellers.

Now, phone distributors will pay a Ksh.5,000 application fee, an initial licence fee of Ksh.250,000 and an annual operating fee of Ksh.120,000, or 0.4 per cent of their gross annual turnover, whichever is higher.

The proposals are subject to public scrutiny and stakeholders have until January 23 to submit their comments.

CA plans to implement the regulations in the 2025/2026 financial year.

The new proposals follow guidelines CA introduced last year requiring phone manufacturers, importers and retailers, and mobile network operators to upload the International Mobile Equipment Identity (IMEI) numbers of all locally assembled and imported mobile phones sold in Kenya from January 1, 2025, to ensure tax compliance.