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Perspective · September 2025

Kenya's internet black market: when connectivity becomes the new counterfeit FMCG

Shaun Morgan
Shaun Morgan, Co-Founder & CEO
First published at shaun-morgan.com and on LinkedIn, 7 September 2025
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Imagine walking into a supermarket and finding shelves filled with products that look like your favourite brands of soap, cooking oil or packaged milk. The price is lower, the labels look convincing, but behind the scenes these goods are unlicensed, unregulated and potentially unsafe. Kenya has faced this problem before with counterfeit fast-moving consumer goods (FMCG), and the response has always been swift: raids by the Kenya Bureau of Standards (KEBS), product seizures, destruction of illicit stock, and hefty fines or even jail time for perpetrators.

Now picture the same scenario playing out not with cooking oil or detergent, but with internet connectivity. Across Kenya, the Communications Authority (CA) has uncovered more than a hundred unlicensed internet service providers operating in major counties and urban centres. These operators often resell bandwidth from legitimate providers without authorisation, bypassing regulation and offering “cheap” but unprotected internet services.

The comparison is striking: just as counterfeit FMCG products expose consumers to harmful substances, unlicensed ISPs expose users to poor service quality, security risks and financial exploitation. And just as counterfeit goods erode trust in established brands, illegal ISPs distort competition, undercutting licensed operators who bear the costs of compliance, taxation and infrastructure investment.

How we treat counterfeit FMCG

When counterfeit or unregulated FMCG products flood the market, the government usually responds decisively:

  • Raids and seizures: KEBS, working with police, confiscates products from shops, warehouses and distributors.
  • Public awareness campaigns: consumers are warned through media about how to identify safe products and the risks of using counterfeit ones.
  • Legal prosecution: offenders are fined heavily, licences are revoked and, in serious cases, custodial sentences are imposed.
  • Supply-chain regulation: legitimate companies adopt tamper-proof packaging, verification codes (like KEBS stickers) and transparent distribution channels.

The aim is always the same: protect consumers, safeguard legitimate businesses and maintain market integrity.

Why internet connectivity should be treated the same

If internet connectivity is today's lifeblood, essential for education, commerce, financial services and even healthcare, then unregulated connectivity should be treated with the same seriousness as counterfeit food or medicine. Yet public perception often minimises the danger, seeing it only as a cheaper alternative.

  • Consumer safety: just as fake milk could poison families, unregulated ISPs can expose users to unsafe networks with no data-protection guarantees.
  • Market fairness: licensed ISPs, like legitimate FMCG companies, bear the costs of compliance. Allowing illegal players to thrive encourages a race to the bottom.
  • Regulatory authority: weak enforcement undermines public trust not only in ISPs but also in the institutions meant to protect consumers.

What actions should mirror FMCG enforcement

  • Stronger raids and visible penalties: illegal networks should face disconnection, confiscation of equipment and prosecution.
  • Public awareness: consumers should be educated to verify whether their provider is licensed, in the same way people are taught to check for KEBS stamps.
  • Compliance incentives: simplifying licensing and lowering entry barriers could encourage small providers to go legitimate.
  • Technology labels: a “licensed provider mark” could be displayed by legitimate ISPs online and in physical outlets, mirroring FMCG anti-counterfeit stickers.

Kenya cannot afford to ignore the parallels between unregulated internet connectivity and counterfeit consumer goods. Both erode trust, endanger consumers and undermine fair competition. If the shelves of a supermarket filled up with fake flour or cooking oil, the response would be immediate. The digital shelves of Kenya's neighbourhoods deserve the same urgency.

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