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Reading: CAK states that it will not prevent Starlink from conducting business in Kenya.
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Newsunplug Kenya > Blog > Business > CAK states that it will not prevent Starlink from conducting business in Kenya.
Business

CAK states that it will not prevent Starlink from conducting business in Kenya.

Ivy Irungu
Last updated: October 17, 2024 2:47 pm
Ivy Irungu
8 months ago
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The Competition Authority of Kenya (CAK) will not stand in the way of new tech giants entering the country’s digital market. CAK Director General David Kemei highlighted the authority’s proactive stance on regulating new players, such as Starlink, in Kenya’s digital and telecommunications sectors.

“We will consider competition issues when regulating such companies, but we need to approach Starlink with a broader perspective—ensuring they expand the market, improve service quality, and reduce prices for consumers,” said Mr. Kemei.

Prof. Reena das Nair, Executive Director of the Competition, Regulation and Economic Development (CCRED), pointed out that digital platforms pose global challenges that require thoughtful analysis rather than dismissal.

“The issues surrounding digital platforms and large tech companies are universal, such as network effects where the first mover can dominate the market, creating exclusionary barriers for others attempting to join,” she explained. “Kenya has made significant efforts to understand these challenges by refining its tools to address competition concerns within digital platforms.”

Both Kemei and Prof. das Nair spoke on Thursday during the 11th annual CAK Symposium, which also addressed agriculture—a sector facing rising input costs and low consumer purchasing power.

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Boniface Makongo, Director of Competition at the COMESA Competition Commission, stressed the importance of collaboration between regional bodies and countries like Kenya, Malawi, Uganda, and Tanzania in tackling issues within the fertilizer and seed markets.

He emphasized the need for clear regulations and strict enforcement of competition laws to safeguard developing markets.

The symposium reaffirmed CAK’s commitment to adapting its regulatory framework to keep pace with technological advancements and market shifts, while also revising buyer power regulations and strengthening oversight of the digital marketplace.

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