Social Media Sellers and Online Shops Face New Rules in Kenya
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Kenya is proposing new regulations that will affect how social media sellers and online shops operate in the country.
The Competition Authority of Kenya (CAK) is set to introduce a bill in Parliament that would impose tougher penalties for e-commerce violations, including false advertising, selling counterfeit goods, and failing to deliver purchased items.
Under the new bill, any digital seller, e-commerce platform, or tech company that mistreats consumers could face fines of up to KSh 10 million or imprisonment of up to five years.
The goal is to address rising concerns about consumer protection in Kenya’s online marketplace, where enforcement has lagged behind rapid growth.
What the Proposed Law Covers
The proposed e-commerce law targets a wide range of digital commerce activities, including:
- Sellers on social media platforms like Facebook, Instagram, TikTok, and X (formerly Twitter)
- Online shops on platforms such as Jumia, Kilimall, Jiji, and similar marketplaces
- Tech companies offering digital products or services directly to consumers
This proposed law follows growing complaints from online shoppers about fake products, misleading ads, and poor customer service. A recent report revealed that 1 in 5 products sold online in Kenya is counterfeit, costing the economy nearly KSh 800 billion annually.
Many of these sales happen through social media, where regulation has been limited.
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What Sellers Must Know
The new consumer protection law for online businesses in Kenya will introduce stricter rules compared to the current Consumer Protection Act of 2012 and Competition Act of 2010. Key highlights of the proposed bill include:
- Higher Penalties: Fines up to KSh 10 million and jail terms up to five years for individuals responsible for selling fake or misrepresented products online.
- Expanded Definitions: The bill will likely redefine consumer mistreatment to include delayed deliveries, lack of refund policies, and data misuse.
- Wider Scope: The regulations will apply to both registered e-commerce platforms and individual sellers using personal social media accounts for business.
- Direct Enforcement Powers: The CAK may be empowered to investigate complaints, impose penalties directly, or forward cases for prosecution in court.
Why the New E-Commerce Regulations Matter
As online shopping in Kenya continues to grow, more consumers are using digital platforms for everything from electronics to fashion and groceries.
But with growth has come risk, many shoppers have fallen victim to scams, counterfeit products, and data misuse. The new rules aim to create a safer online shopping environment in Kenya.
Consumers will benefit from more transparent advertising, clear return and refund policies, and protection of personal data. Meanwhile, digital sellers in Kenya will need to ensure their practices comply with the upcoming law or face steep penalties.
What Happens Next?
The bill is expected to be tabled in Parliament soon. Once passed, the new e-commerce regulations in Kenya will become enforceable, and the Competition Authority of Kenya, along with the Communications Authority, will begin oversight and enforcement.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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