Kenya’s competition watchdog warns big businesses face tougher AI and digital market scrutiny measures
By Aloys Michael, July 22, 2026Kenya’s Competition Authority is preparing for a new phase of market regulation as artificial intelligence (AI), Big Data and digital platforms transform how businesses compete, raising concerns that technology could make anti-competitive conduct harder to detect.
In its Annual Report and Financial Statements for the year ended June 30, 2025, the Competition Authority of Kenya (CAK) says the rapid adoption of AI and data-driven business models is reshaping competition enforcement, prompting the regulator to invest in new investigative tools and place digital markets at the centre of its next three-year strategy.
The shift has significant implications for businesses operating in Kenya’s banking, telecommunications, e-commerce, retail and manufacturing sectors, where AI-powered pricing tools, automated procurement systems and data analytics are increasingly becoming part of everyday commercial operations.
The Authority warns that while these technologies improve efficiency, they can also make anti-competitive conduct more difficult to uncover.
“We recognize that businesses could leverage Artificial Intelligence (AI) and Big Data to distort markets, making their covert operations hard to detect,” the report says.
“Indeed, cartel conduct cases typically take up to three years from the fact-finding stage to closure, and the rise of digital technologies adds further complexity to detection.”
The observation reflects a growing challenge facing competition regulators globally as markets become increasingly digitised. Rather than relying solely on traditional forms of collusion, companies can now use sophisticated technologies that generate vast amounts of commercial data, requiring regulators to develop more advanced investigative capabilities.
While the report does not identify specific AI-related cases, it makes clear that the Authority expects digital markets to become a major enforcement priority.
To strengthen its ability to investigate increasingly complex cases, the Authority says it has established a forensic laboratory to support digital investigations.
“To address this, we have set up a forensic laboratory to aid in evidence collection, analysis, and reporting for investigations,” the report states.
The laboratory is expected to enhance the regulator’s capacity to analyse digital evidence as businesses generate larger volumes of electronic records and transactions.
The investment forms part of CAK‘s broader effort to modernise competition enforcement under its Fourth Strategic Plan, which is guided by the theme “Promoting and Sustaining Enforcement for Enhanced Consumer Welfare.”
Market oversight
Board Chairman Shaka Kariuki says businesses should expect stronger oversight as markets continue evolving.
“Stakeholders should therefore expect to see enhanced enforcement action with regard to deterring anti-competitive conduct, sanctioning abuse of buyer power, and efforts targeted at enhancing consumers’ welfare,” Kariuki writes in the report.
“These initiatives shall be aligned with emerging issues in our markets, including Big Data, Artificial Intelligence, and climate change and sustainability.”
Beyond enforcement, the Authority says market research will play an increasingly important role in identifying competition risks in fast-changing sectors.
During the financial year, the regulator completed market inquiries in the animal feeds sector, initiated a fertiliser market inquiry and carried out studies on internet provision services and abuse of buyer power in Kenya’s supermarket sector.
According to the report, the findings will guide future enforcement actions and policy recommendations aimed at creating more competitive markets.
Director-General David Kemei says these studies are intended to deepen the regulator’s understanding of evolving markets and strengthen evidence-based decision-making.
“To better understand our markets, including the level of competition, barriers to entry, and any consumer welfare concerns, the Authority conducted two market inquiries focusing on the animal feeds and fertilizer sectors,” Kemei says in the report, adding that further studies on internet services and supermarket buyer power will support future regulatory interventions.
Looking ahead, CAK plans to intensify investigations into anti-competitive practices, including price fixing, abuse of dominance and market allocation, while increasing consumer investigations and conducting additional market studies across key sectors of the economy.
The Authority also intends to strengthen public awareness through digital and traditional media and expand access to its services through partnerships with Huduma Centres.
For corporate executives, investors and compliance officers, the report signals a clear change in regulatory priorities. As AI, Big Data and digital platforms become more deeply embedded in business strategy, companies should expect greater scrutiny of how technology shapes market behaviour. By investing in forensic capabilities and prioritising digital markets in its new strategic plan, Kenya’s competition watchdog is positioning itself for an era in which algorithms, data and digital ecosystems become as central to competition enforcement as traditional cartels have been for decades.