Kenya is expected to establish a dedicated national e-commerce regulation unit as part of sweeping new regional rules, aimed at harmonising digital trade across eastern and southern Africa and improving consumer welfare in fast-growing digital markets.
The Model E-Commerce Policy for the eastern and southern Africa and Indian Ocean regions recommends that every member state creates a National E-Commerce Unit to coordinate regulation, oversee digital marketplaces and streamline policy implementation.
The proposal marks a shift from the current trajectory in Kenya, where legislation is underway to place the entire industry under the Competition Authority of Kenya (CAK), the country’s main consumer protection agency.
Experts from 29 countries under Comesa, the East African Community, Southern African Development Community , Inter-Governmental Authority on Development and the Indian Ocean Commission (IOC) endorsed the new proposals at a meeting in Nairobi on Monday.
Currently, most countries, including Kenya, rely on multiple regulators such as communications authorities, competition agencies and data protection offices to police online commerce. The policy argues that this fragmentation weakens enforcement, slows cross-border trade and creates uncertainty for businesses.
“Findings show fragmented governance, overlapping mandates, weak enforcement, and limited coordination with private sector and civil society,” reads the proposed policy.
“Recommendations include establishing national e-commerce units, developing harmonized laws, enhancing coordination, strengthening consumer protection, and ensuring policy alignment across regional economic communities.”
If adopted, the reforms could reshape how Kenya regulates online marketplaces, digital payments, advertising, refunds, complaints and platform dominance - areas that have expanded rapidly but lack a unified oversight mechanism.
CAK is currently seeking amendments to the Competition Act to give it sole authority over e-commerce and digital markets, a move local experts warn could stifle innovation.
Comesa, which coordinated the development of the regional policy, says countries will be free to choose where the new units are housed – within communications regulators, competition watchdogs or State ministries.
“At the national level, there are a lot of dynamics, so we can only recommend, but the choice and the decision is ultimately that of the member States,” said Benard Dzwanda, Comesa’s director of infrastructure and logistics.
CAK could therefore create an additional department to handle e-commerce and digital trade, drawing expertise from data protection and communications agencies, or a fully separate entity could be established.
Kenya is currently consulting on its draft National E-Commerce Policy, which does not explicitly provide for a national e-commerce unit.
The new regional framework increases pressure on Nairobi to revisit its approach as it advances the next phase of digital-economy reforms.
If the government adopts the recommendation, Kenya would join other member states expected to reconfigure their regulatory systems to meet the standards set out in the model policy.
