The Competition Authority of Kenya (CAK) has warned landlords and residential estate managers against blocking internet service providers (ISPs) from accessing their residential buildings.
In a notice on Tuesday, June 24, CAK said it has received numerous complaints that landlords are signing exclusive contracts with specific ISPs to offer internet services in their residential estates.
“It has come to the Authority’s attention, through market surveillance and numerous consumer complaints, that property developers and estate managers are signing exclusive contracts with specific Internet Service Providers (ISPs) and restricting competing firms from offering alternative services,” read the CAK notice in part.
The authority noted that exclusive agreements between landlords and specific ISPs deny Kenyan consumers the choice of services that meet their specific needs, contrary to the Constitution.
“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,” CAK stated.
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CAK warned landlords and ISPs that they risk being fined up to Ksh10 million, imprisonment for up to five years, or both.
“Undertakings that infringe the Act risk being penalized up to 10% of their preceding year’s gross annual turnover in Kenya. For criminal prosecutions, they face fines of up to Ksh10 Million and imprisonment for a maximum of five years, or both,” the authority stated.
Further, CAK directed landlords, real estate managers, and internet service providers involved in exclusive internet provision agreements to cease such arrangements and landlords to allow entry of competing ISPs into their developments.
Residents have also been urged to report any cases of non-compliance to the Authority.
