<p class="MsoNormal"><span lang="EN-GB">Legislation and Regulation for e-Commerce
in Kenya</span></p>
<p class="MsoNormal"><span lang="EN-GB">Kenya ICT Federation (KIF) - Briefing Note
# 3<span style=""> </span>- Report - Public Panel 19 June 2008</span></p>
<p class="MsoNormal"><b style=""><span lang="EN-GB">Electronic
commerce (e-commerce) will add at least one percent point growth to Kenya's
overall economic growth within five years. This is contingent upon the adoption
of legislation that supports electronic transactions. </span></b><span lang="EN-GB">Kenya, as an emerging economy and regional
leader, lags behind in having a legal framework for e-commerce in place. The
current situation is 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.</span></p>
<p class="MsoNormal"><span lang="EN-GB">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:<br>-Legalize e-commerce transactions by
recognizing an electronic signature<br>-Manage and control e-commerce risks<br>-Remove e-commerce barriers<br>KIF 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 with sectors
of the economy (including tourism, agriculture, ICT) have been held on 6th and
27th May, 4th June and 19th June. The Kenyan private sector has expressed
overwhelming support for urgent legislation of e-commerce.</span></p>
<p class="MsoNormal"></p><p class="MsoNormal" style="margin-left: 0.25in; text-indent: -0.25in;"><span lang="EN-GB">Suggested improvements in Bills - The public panels and hearings to date have
yielded the following important issues for improvement in the current Bills:</span><span style="font-family: "Times New Roman";" lang="EN-GB"><span style=""><br></span></span></p><p class="MsoNormal" style="margin-left: 0.25in; text-indent: -0.25in;">
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</span></span></span><span lang="EN-GB">Provisions on who can prosecute
are missing</span></p>
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</span></span></span><span lang="EN-GB">Liability of Internet Service
Providers must be demarcated</span></p>
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</span></span></span><span lang="EN-GB">Clarification on which
commercial documents are excluded from proposed legislation</span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-indent: -0.25in;"><span style="font-family: "Times New Roman";" lang="EN-GB"><span style="">-<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;">
</span></span></span><span lang="EN-GB">Eliminate any ambiguity on
admissibility of electronic evidence</span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-indent: -0.25in;"><span style="font-family: "Times New Roman";" lang="EN-GB"><span style="">-<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;">
</span></span></span><span lang="EN-GB">Need for data protection and
privacy provisions</span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-indent: -0.25in;"><span style="font-family: "Times New Roman";" lang="EN-GB"><span style="">-<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;">
</span></span></span><span lang="EN-GB">The Bills are more lenient on
e-commerce fraud than on traditional fraud</span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-indent: -0.25in;"><span style="font-family: "Times New Roman";" lang="EN-GB"><span style="">-<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;">
</span></span></span><span lang="EN-GB">Remove inconsistencies in
determining crimes and punishments</span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-indent: -0.25in;"><span style="font-family: "Times New Roman";" lang="EN-GB"><span style="">-<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;">
</span></span></span><span lang="EN-GB">Provisions for the inclusion of
cyber-crime within the scope of the Extradition Act</span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-indent: -0.25in;"><span style="font-family: "Times New Roman";" lang="EN-GB"><span style="">-<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;">
</span></span></span><span lang="EN-GB">Creation of an Administrator for
e-commerce laws whose functions will be policy implementation and advisory, as
a multi-sectoral body with industry associations including KIF, lead regulator
Communications Commission of Kenya and co-regulator Central Bank of Kenya</span></p>
<p class="MsoNormal"><span lang="EN-GB">Gains in tourism, agriculture, healthcare</span></p>
<p class="MsoNormal"><span lang="EN-GB">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 evidence. Those destinations
that cannot legally support abundant on-line booking, such as Kenya, will loose
market share. E-commerce in agriculture will improve small-holder's living standards.
Great impact is expected notably in the coffee sector that provides livelihood
to at least 5 million Kenyans, as well as in the dairy industry. Healthcare
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.</span></p>
<p class="MsoNormal"><span lang="EN-GB">What is e-commerce</span></p>
<p class="MsoNormal"><span lang="EN-GB">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
mutual 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.</span></p>
<p class="MsoNormal"><span lang="EN-GB">About KIF</span></p>
<p class="MsoNormal"><span lang="EN-GB">The Kenya 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 <a href="http://www.kepsa.org/" title="http://www.kepsa.org/"><span style="color: windowtext; text-decoration: none;">KEPSA</span></a>. 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. Contact: <a href="mailto:secretariat@kif.or.ke">secretariat@kif.or.ke</a>, 020 4440102</span></p>
MARCEL WERNER, Chairman, Kenya ICT Federation<br><br>please send any business mail to:<br><a href="mailto:Marcel.Werner@innovation-africa.or.ke">Marcel.Werner@innovation-africa.or.ke</a>