Kenya considers dedicated digital ID in digital trade policy reform

Kenya’s Ministry of Investments, Trade and Industry (MITI) is leading an initiative that seeks to introduce a compulsory digital ID to facilitate identity verification and authentication in online commercial transactions in the country.

Multiple local media reports indicate that the idea is part of the country’s wider digital ID vision of streamlining access to public and private sector services at different levels and strengthening the fight against fraud.

A draft policy in this regard is being considered to strengthen the policing of the digital commerce sector which is on a steady growth path in the country, according to Business Daily.

The government has called for public comments on the draft policy and expects these to come in by July 21 at the latest, according to a MITI statement posted on its X account.

Per the government, the proposed trust mark and digital seller ID system will provide a structured framework to guide the development, growth, and regulation of e-commerce in the country.

Cognizant of the fact that digital commerce is increasingly taking roots, having a unique digital ID that will streamline operations and fill trust gaps is critical, says MITI. Digital commerce in Kenya is expected to growth by between 13-16.4 percent by 2029, with the market expected to go beyond $1 billion by that same year.

“The policy seeks to enhance consumer protection, promote the development of digital infrastructure, bridge the digital divide, promote digital skills development, create a conducive environment for digital trade, develop a coherent policy framework, support micro, small, and medium enterprises (MSMEs), and respond to climate change and sustainable e-commerce,” the statement explains.

Meanwhile, NTV reports that the digital ID is also intended to fight price-fixing and non-compliance with regulations which often leads to unfair competition and the exploitation of consumers involved in online purchases.

The government says the identity of buyers and sellers on the proposed system will be verified using government-issued ID cards and biometrics.

Already, Kenya has a national digital ID system dubbed the Maisha Namba digital ID, which the government considers the foundation of all digital transactions. It’s in about the third year of its implementation now and even though authorities are reporting success, the program still faces a barrage of challenges including issues around exclusion and data privacy.

With the new digital commerce ID policy, civil society and rights activists are also making calls for emphasis on public trust, inclusion and data privacy and security.

Article Topics

Africa  |  biometrics  |  digital ID  |  government services  |  identity verification  |  Kenya