The Competition Authority of Kenya (CAK) is seeking expanded powers to regulate competition in digital markets and virtual assets under the proposed Competition (Amendment) Bill, 2026.
CAK Director General (DG) David Kemei said the current Competition Act does not adequately address emerging sectors such as cryptocurrencies, stablecoins and other digital services, making enforcement difficult.
He said the proposed law would strengthen the regulatory framework by clarifying the Authority’s powers, improving enforcement mechanisms and aligning Kenya’s competition regime with developments in the digital economy and international best practice.
“The Authority has experienced several enforcement challenges while executing its mandate under the current Act, including in areas such as digital markets, abuse of superior bargaining position and compliance with its decisions after investigations,” Kemei said in a submission to the Departmental Committee on Finance and National Planning of the National Assembly handling Bill.
“Our experience in administering the current Act has identified several operational and legal gaps that affect effective implementation.”
The DG said digital platforms differ from traditional businesses because they derive competitive advantages from network effects, control of large volumes of data and integrated digital ecosystems, allowing them to rapidly build and entrench market power.
He noted that such characteristics make it difficult for new competitors to enter or expand in digital markets.
The proposed amendments would also give the Authority powers to address abuse of superior bargaining position, a practice it says is not fully covered under the existing provisions on abuse of dominance or buyer power.
According to Kemei, the changes would enable CAK to intervene where businesses exploit their bargaining advantage over suppliers, distributors, retailers, service providers and other trading partners, even where markets remain competitive.
He argued that unchecked conduct can suppress innovation, discourage investment, weaken small businesses and ultimately reduce consumer choice and welfare.
