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Legislation and Regulation For E-Commerce in Kenya

This document discusses the need for legislation and regulation to support e-commerce in Kenya. It notes that e-commerce could boost Kenya's economic growth by 1% within 5 years but legislation is needed first. The Kenyan private sector strongly supports e-commerce laws. Suggested improvements are provided for current draft bills related to information and communication technology and electronic transactions. Adopting e-commerce laws could benefit sectors like tourism, agriculture, and healthcare.

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Kena Mutisya
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205 views2 pages

Legislation and Regulation For E-Commerce in Kenya

This document discusses the need for legislation and regulation to support e-commerce in Kenya. It notes that e-commerce could boost Kenya's economic growth by 1% within 5 years but legislation is needed first. The Kenyan private sector strongly supports e-commerce laws. Suggested improvements are provided for current draft bills related to information and communication technology and electronic transactions. Adopting e-commerce laws could benefit sectors like tourism, agriculture, and healthcare.

Uploaded by

Kena Mutisya
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Legislation and Regulation for e-Commerce in Kenya

KIF Advocacy Project 2008

Briefing Note # 3

Report - Public Panel 19 June 2008

Electronic commerce (e-commerce) will add at least one percent point growth to
Kenyas overall economic growth within five years. This i s contingent upon the
adoption of legislation that supports electronic transactions.
Kenya, as an emerging economy and regional leader, lags behind in having a legal
framework for e-commerce in place. The current situation i s an anachronism
hampering national development, placing provincial centres at a disadvantage, and
harming global competitiveness. Both external and internal trade require the new
framework.
The Kenyan private sector strongly supports e-commerce legislation, as well as
legislation of the Information and Communication Technology sector that guarantees
an open market and promotes innovation.

Why e-commerce law


Today, legislation supporting electronic transactions represents the single most powerful
innovation opportunity in the legal framework of the ICT sector. Legislation is needed to:
- Legalize e-commerc e transactions by recognizing an electronic signature
- Manage and cont rol e-c ommerce risks
- Remove e-commerc e barriers
The Keny a ICT Federation (K IF) has studied drafts currently circulating in the public domain,
the Information and Communications Bill, 2008, and the Electronic Transactions Bill, 2007,
respectively, both of which are of the highest technical standards. Public panels and hearings
th
with sectors of the economy (including tourism, agriculture, ICT) have been held on 6 and
th th th
27 May, 4 June and 19 June. The Kenyan private sector has expressed overwhelming
support for urgent legislation of e-commerce.

Suggested improvements in Bill s


The public panels and hearings to date have yielded the following import ant issues for
improvement in the current Bills:
1. Provisions on who can pros ecute are missing
2. Liability of Internet Service Providers must be demarcated
3. Clarification on which commercial doc uments are excluded from proposed legislation
4. Eliminate any ambiguity on admissibility of electronic evidence
5. Need for data protection and privacy provisions
6. The Bills are more lenient on e-commerce fraud than on traditional fraud

KIF e-Commerce Briefing Note # 3

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7. Remove inconsistencies in det ermining crimes and punishments
8. Provisions for the inclusion of cyber-crime within the scope of the Extradition Act
9. Creation of an Administrator for e-commerce laws whose functions will be policy
implementation and advisory, as a multi-sectoral body wit h industry associations
including KIF, lead regulator Communications Commission of Kenya and co-regulator
Cent ral Bank of Kenya

Gains in touri sm, agriculture, healthcare


Industry sectors, notably the tourism industry, are expressing their desire to see e-commerce
covered by law. In tourism, on-line travel bookings have exceeded 80% in the USA and 50%
in Europe. Decline in off-line bookings is in ample evidenc e. Those destinations that cannot
legally support abundant on-line booking, such as Kenya, will loose market share. E-
commerce in agriculture will improve small-holders living standards. Great impact is expected
notably in the coffee sector that provides livelihood to at least 5 million Keny ans, as well as in
the dairy industry. Healt hcare efficiency and affordability will improve by on-line health data
management systems. Business operators in rural towns and rural centres have also
expressed keen interest, as they see scope to address issues of trade efficiency and security
in rural Kenya.

What is e-commerce
E-commerce is a method of trading that replaces paper-based documentation by a mutually
binding electronic protocol between buyers and sellers. E-commerce is gaining ground
globally and has become an irreversible trend. Many trading partners are already practicing e-
commerce, by mutual agreement, also in Kenya. However, e-commerce will reach its full
potential when parties that do not know each other are able to trade with full mut ual protection
under the law. This will benefit large numbers of consumers and businesses, including small-
holder farmers, tourism operators, small-scale industry and services providers in almost any
business sector.
The Keny a ICT Board supports the KIF e-commerce project, through the KICTB Public
Panels Programme launched in Nairobi on 29th April 2008. Furt her support is provided by the
Business Advocacy Fund, as well as KIFs very active membership.

About KIF
The Keny a Information and Communication Technology Federation (KIF) represents the ICT
industry with Government and with private sector bodies e.g. Kenya Association of
Manufacturers and Kenya Private Sector Alliance KEPSA. KIF is a legally registered
membership based Association, made up of trade associations and professional bodies within
the national ICT industry, as well as commercial corporations. KIF has been accepted as the
private sector voice of ICT by Government. KIF contributes ideas to key sectors like
healthcare, education, agriculture, construction industry, and last but not least supports e-
government development.
KIF is a membership-driven organisation. Members bring issues on public policy and industry
development forward for KIF to take action. Issues include: innovation promotion, education
improvement, duties, taxes and levies, rural ICT investment. KIF has a strong and active
network, with excellent relationships with all government agencies.
KIF membership is open for market segment associations and individual companies.
Membership charges are annual and based on company size.
Cont act: [email protected], 020 4440102 or visit www.kif.or.ke.

+++

KIF e-Commerce Briefing Note # 3

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