The Competition Authority of Kenya (CAK) has warned real estate developers and estate managers over growing concerns of restrictive agreements with Internet Service Providers (ISPs), a move that could upset the way Internet services are delivered in residential estates. 

In a public notice dated June 24, 2025, the authority said it had received numerous complaints and uncovered through market surveillance that some developers are entering exclusive arrangements with specific ISPs, effectively locking out competitors and denying residents the right to choose alternative providers. 

“This conduct by ISPs denies consumers the benefits of competition, which include fair pricing, enhanced service quality, and innovative solutions,” said David Kemei, CAK’s Director-General.  

“Foreclosing competitor ISPs from accessing certain markets risks creating monopoly-like enterprises in the affected estates.”

Such agreements, CAK noted, contravene multiple provisions of the Competition Act, which prohibit conduct that limits market access, distorts competition, or applies unfair terms to different business partners. 

“Parties are cautioned that exclusive dealings, including those entered into by certain ISPs and real estate developers/estate managers, deny Kenyan consumers choice of services that meet their specific needs, contrary to the Constitution of Kenya and the Act,” the notice states. 

The authority warned that such breaches are punishable by fines of up to 10 per cent of a company’s gross turnover in the preceding year. Where criminal prosecution applies, individuals risk fines of up to Ksh10 million or imprisonment for up to five years, or both. 

Developers and ISPs found culpable have been directed to immediately “cease engaging in this exclusive conduct and prevent its recurrence” and to “facilitate entry of competitor ISPs in their developments.”

The authority invited members of the public to report cases of non-compliance through its complaint portal. 

The action comes amid increasingly aggressive competition in Kenya’s internet sector, where firms battle for subscribers both in urban and remote regions.  

Residential market 

According to the Communications Authority of Kenya, Safaricom remains the largest fixed broadband provider, followed by Jamii Telecommunications (Faiba), Wananchi Group (Zuku), and Poa Internet.  

Combined, they dominate the residential market, with newer entrants like Starlink gaining limited but fast-growing traction, especially in underserved rural areas.

While Starlink’s rollout has been notable, its subscription numbers remain modest compared to established players. Launched in 2023, the satellite-based provider had slightly over 8,000 users by mid-2024.

Beyond the market share dynamics, the government’s last-mile fibre optic project has played a critical role in enabling smaller ISPs to enter previously inaccessible areas.

The Digital Superhighway project aims to lay over 100,000 kilometres of national fibre optic backbone by 2026, further intensifying competition and opening up real estate estates to multiple providers. 

However, the notice from CAK signals that infrastructure access alone is not sufficient if developers continue to restrict competition through exclusivity clauses.

These arrangements, the authority says, not only violate the law but also place residents at a disadvantage. 

“Section 21(3)(f) of the Act prohibits undertakings from applying dissimilar conditions to equivalent transactions with trading parties, thereby placing them at a competitive disadvantage,” the notice reads. 

Several developers in Nairobi and Mombasa have previously been cited by residents on social media for refusing to allow more than one ISP in gated estates, raising concerns about service quality and lack of competitive pricing.