CAK Cracks Down on Landlords Blocking Internet Providers in Residential Estates

The Competition Authority of Kenya (CAK) has issued a stern warning to landlords, estate developers, and property managers who engage in restrictive practices by blocking certain internet service providers (ISPs) from accessing residential estates.

This move follows a rising number of complaints from tenants across the country, who claim they are being forced to use only one ISP selected by their landlords—often under exclusive and unregulated agreements.

In a press statement released on June 26, 2025, CAK Director-General David Kemei confirmed that such practices are not only anti-competitive but also unlawful under the Competition Act (CAP 504).

These exclusive arrangements, he explained, deny residents the right to choose their preferred service providers, resulting in poor service quality, limited options, and higher prices due to the absence of competition.

The Authority highlighted several violations under Section 21 of the Act, including:

• Preventing or distorting competition in any market (Section 21(1)),
• Limiting market access and investment opportunities (Section 21(3)(e)),
• Unequal treatment of similar businesses without justification (Section 21(3)(f)).

To address the problem, CAK has ordered all landlords and property owners involved in such deals to immediately dismantle exclusive ISP agreements and ensure open access for all licensed internet providers.

The regulator has also encouraged tenants to report any violations via its consumer complaint portal, promising swift action against offenders.

Failure to comply with the directive could result in severe penalties, including fines of up to 10% of the previous year’s turnover, criminal charges, and fines up to KSh 10 million, or a prison term of up to five years, or both. These penalties are designed to underscore the gravity of the offense and to protect consumers from exploitation.

The crackdown comes at a time when internet access has become essential for daily life in Kenya. From online learning and digital banking to remote work and entertainment, internet connectivity plays a central role in enabling socio-economic development.

The CAK’s decision is widely seen as a significant step toward strengthening digital rights, ensuring fair competition in the telecommunications sector, and enhancing the overall quality of services offered to Kenyans.

The move also aligns with broader efforts to support the government’s digital transformation agenda, which aims to expand affordable and high-quality internet access to all parts of the country.

By ensuring that all ISPs have equal access to residential estates, the CAK hopes to foster innovation, improve service delivery, and lower costs for consumers.