The Communications Authority of Kenya (CA) plans to shut down ecommerce companies that operate without a license in the country, a move that would certainly affect many online retailers with a large social media following.
“The authority is currently carrying out a market study in the postal and courier sub-sector in order to establish the service access gaps to inform remedies and initiatives towards boosting services for consumers,” Mr Chiloba said while marking the World Post Day.
“The findings will enable the authority to take some interventions and address some of the noted challenges experienced by players and consumers of postal courier services.”
Here Is What You Need To Know
- Kenyan consumers have expressed alarm in recent months about online stores that promote their products using social media platforms such as Instagram, WhatsApp, and Twitter, only to find out later that they are scams.
- According to reports, users are frequently advised to use mobile money to make payments, only to discover that they have been barred by the store across all platforms or that their usernames have changed.
- Firms that have not been licensed to provide e-commerce services by the CA, according to ICT Cabinet Secretary Joe Mucheru, should be shut down.
“My ministry and the industry regulator noted with concern that a number of firms took advantage of the Covid-19 pandemic to start offering unlicensed courier services in the country,” he said.
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“I am calling upon the CA to enhance its enforcement interventions across the country and ensure those firms operating without licences are weeded out of the market.”
- The effort to tighten the sector’s regulations is also seen as an attempt to give Kenya’s Postal Corporation a fighting chance.
- The state-owned company is battling a slew of problems, including technological disruption, competitiveness, mismanagement, and the Covid-19 pandemic.
- CA canceled the postal and courier licenses of 21 service providers, including many bus and matatu Saccos, in April of this year.
- Modern Coast Courier, Ballore Transport and Logistics, Skynet World Express, Global Freight Logistics, Randa Coach, and Tahmeed Courier were among the companies who participated.
- PCK raised the cost of sending letters within the country by 57% a few months later, the second price hike in less than a year.
shut down ecommerce Kenya
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer