In a move aimed at redefining how Kenyans pay for their internet, Parliament is considering a legislative amendment that could upend the flat-rate billing model long favored by most Internet Service Providers (ISPs).
- •The Kenya Information and Communication (Amendment) Bill 2025, tabled by Aldai MP — Marianne Kitany, introduces a requirement for ISPs to implement metered billing systems — a departure from bundled and unlimited packages that many consumers rely on.
- •If passed, the law would require providers to assign every customer a unique “internet meter number,” track their data consumption in real time and generate invoices based solely on usage.
- •The proposal also mandates that consumers should be able to verify these bills and that providers should submit annual billing system reports to the Communications Authority of Kenya (CA).
At face value, the bill’s intent appears to be aligned with consumer protection, seeking to address concerns around opaque billing practices and undisclosed data caps. For many Kenyans, especially in urban centers where demand for reliable internet has surged, the promise of transparency sounds noble.
Metered billing relies on time-based metrics-tracking usage over a period of time- to calculate charges and is predominantly used for long-term subscriptions.
Yet beneath the consumer-friendly packaging lies a regulatory shift that could convey broader implications. The move effectively transforms ISPs into utilities charged with precision tracking, compliance reporting, and administrative record-keeping. For smaller ISPs, the costs of implementing such metering systems and billing infrastructure could be substantial. Smaller regional ISPs operate on thin profit margins and rely on bundled, flat-rate offerings to remain competitive.
The amendment provisions could be too burdensome on their operations, pushing many out of the market entirely. These ISPs are invaluable players in the quest to expand internet access in rural and remote areas in the country. Their proliferation has ramped up access and competition thus significantly reduced internet prices for low-income households. In effect, the bill risks entrenching dominant players and stifling innovation.
For consumers, the ability to see one’s exact data consumption might reduce overcharging but could create an atmosphere of excessive rationing, which is detrimental to internet access. In a country aspiring to digital inclusion, the billing model may discourage high-bandwidth activities like online learning or video conferencing among lower-income users.
The Problematic KYC Rules
Operators are also required to collect and securely store detailed identification information from subscribers before providing services. This includes full names, ID numbers, birth dates, gender, and physical and postal addresses for individuals, and registration particulars for corporate or statutory bodies.
The proposed amendment also redefines “telecommunication operator” to explicitly include ISPs, cementing their full incorporation into the Communications Authority’s jurisdiction. With it comes stricter enforcement, harsher penalties, and deeper state visibility into private sector operations.
While the bill requires that user details be kept confidential unless needed for criminal or civil proceedings, it does not outline how this data will be secured or who audits the billing algorithms. In a time when data protection remains a hot global conversation, this could be a recipe for weak oversight.
The proposed amendment bill also imposes a hefty KSh 5 million fine for operators that fail to adhere to the prescribed requirements including the implementation of the metered billing system or proper registration of users.
The existing ISP licenses remain valid only until expiry, after which all must comply with the new framework to renew operations.
