NAIROBI, Kenya, June 24 – Property owners face a Sh10 million fine or up to five years imprisonment for locking out competing Internet Service Providers (ISPs) from their own premises as the Competition Authority of Kenya (CAK) begins a crackdown.
In a public notice published today, the competition watchdog says that it has received numerous complaints from consumers regarding property developers and estate managers denying other ISP players access to their buildings through the signing of exclusive contracts, therefore restricting competing firms from offering alternative services.
According to Section 21(3)(e) of the Competition Act, individuals and firms are prohibited from limiting or controlling market access.
“Parties are cautioned that exclusive dealings, including those entered into by certain ISPs and real estate developers/estate managers, deny Kenyan consumers choice of services that meet their specific needs, contrary to the Constitution of Kenya and the Act,” CAK Director-General David Kemei said.
Demand for internet services in residential and business areas has been rising, creating a good business opportunity for companies to tap into, with some service providers colluding with landlords or property managers to control markets.
Such practices have seen disadvantaged ISPs locked out of certain facilities, denying customers internet service choices.
“This conduct by ISPs denies consumers the benefits of competition which include fair pricing, enhanced service quality, and innovative solutions. Further, foreclosing competitor ISPs from accessing certain markets risks creating monopoly-like enterprises in the affected estates,” Kemei added.
Some of the ISPs in Kenya include Safaricom, Faiba, Zuku, and Poa Internet, among others.
Data from the Communications Authority of Kenya (CA) shows that Safaricom dominates the local ISP market with 36.6 percent market share, followed by Jamii Telecommunications (24.4 percent), Wananchi Group (16.8 percent), and Poa Internet (12.6 percent).
