Kenya Eyes New Competition Rules as Digital Algorithms Reshape Markets
National Treasury Principal Secretary Dr. Chris Kiptoo speaking during the Competition Authority of Kenya’s Research Conference on Competition and Consumer Welfare in Nairobi on June, 04 2026.
Kenya is moving to strengthen its competition framework as regulators confront a rapidly changing marketplace where artificial intelligence, algorithms and digital platforms are increasingly influencing consumer choices, business opportunities and access to financial services.
The push emerged during the Competition Authority of Kenya’s Research Conference on Competition and Consumer Welfare in Nairobi, where policymakers, researchers and industry experts examined how competition policy must evolve to keep pace with technological advancements and the growing digital economy.
Opening the conference, National Treasury Principal Secretary Dr. Chris Kiptoo said competitive markets remain central to Kenya’s economic transformation agenda, noting that fair competition directly affects investment, innovation, job creation and the cost of living.
“Competition is not just a regulatory concept, it is an economic policy instrument that directly shapes investment decisions, employment outcomes, the cost of living and the sustainability of our public finances,” he said.
Dr. Kiptoo noted that while Kenya has made significant progress in building a market-driven economy, anti-competitive practices continue to affect key sectors, limiting opportunities for businesses and increasing costs for consumers.
He pointed out that Micro, Small and Medium Enterprises (MSMEs), which account for about 34 per cent of Kenya’s Gross Domestic Product and employ approximately 15 million people, remain particularly vulnerable to unfair market practices, delayed payments and barriers to market access.
The Principal Secretary said the government is working with the Competition Authority of Kenya to develop a National Competition and Consumer Welfare Policy and strengthen the Competition Act to address emerging challenges in both traditional and digital markets.
Competition Authority of Kenya Director-General David Kemei said competition enforcement has evolved beyond simply preventing cartels and price-fixing, becoming an important tool for driving economic growth, consumer welfare and inclusive development.
“Competition enforcement is not merely about stopping anti-competitive conduct, but about improving the lives of ordinary citizens,” said Kemei.
He highlighted several interventions that have helped open markets and expand opportunities for Kenyans, including reforms in the mobile money sector that improved interoperability and access to mobile money agents.
According to Kemei, active mobile money agents have grown from approximately 138,000 in 2015 to more than 500,000 by February 2026, demonstrating how pro-competition measures can unlock economic participation and financial inclusion.
He also cited the Authority’s efforts to curb abuse of buyer power in the retail sector following the collapse of Nakumatt Supermarkets, which left suppliers owed more than KSh18 billion. Since 2019, the Authority has facilitated the recovery of over KSh3.5 billion for affected suppliers while pushing for fairer procurement practices.
But while traditional competition concerns remain important, discussions at the conference increasingly focused on the role of technology and algorithms in shaping modern markets.
Researchers warned that digital platforms are becoming powerful gatekeepers, using algorithms to determine which businesses, products and information consumers see online.
One researcher pointed to examples where search algorithms can give greater visibility to global brands and publishers while reducing the prominence of local businesses and media outlets, effectively influencing market outcomes without consumers being aware of it.
The researcher also raised concerns about personalized advertising and pricing systems that use consumer data to target individuals differently based on their online behaviour.
“When I open YouTube, I will see a different advert from you. I’ll probably see an advert for a shoe because I was looking for a shoe. You will see a different advert based on what you have done,” she explained.
She further highlighted concerns in the digital lending sector, where algorithms are increasingly being used to assess borrowers using data generated from browsing activity, mobile transactions and other digital footprints.
According to the researcher, such systems risk reinforcing existing inequalities when they rely on historical datasets that may already contain biases.
“We cannot expect an algorithm that is trained on historically biased data to produce results that are not biased,” she said.
The researcher called on regulators to conduct more market inquiries into digital platforms and emerging technologies, arguing that algorithms should be subject to audits and greater transparency requirements.
She also advocated for explainable artificial intelligence systems and stronger oversight to ensure that automated decisions affecting consumers can be reviewed and challenged.
Kemei acknowledged that digital markets have introduced enforcement challenges that traditional competition laws were never designed to address.
From data concentration and self-preferencing by digital platforms to algorithmic pricing and artificial intelligence, he said regulators must develop new tools and expertise to ensure markets remain fair and competitive.
As Kenya continues to position itself as a regional technology hub, experts at the conference agreed that the future of competition policy will increasingly depend on the ability of regulators to understand and oversee the digital systems shaping modern commerce.
For consumers and businesses alike, the debate is no longer only about who controls the market. It is increasingly about who controls the algorithms that determine visibility, access and opportunity in the digital economy.
