Kenya Proposes Digital ID for Online Trade and Fraud Prevention

Published Date : 7/18/2025 

Kenya's Ministry of Investments, Trade and Industry (MITI) is spearheading a new initiative to introduce a compulsory digital ID for online commercial transactions. This move aims to streamline access to services, enhance consumer protection, and combat fraud in the digital commerce sector. 

Kenya’s Ministry of Investments, Trade and Industry (MITI) is leading an initiative to introduce a compulsory digital ID to facilitate identity verification and authentication in online commercial transactions in the country. This move is part of the country’s broader digital ID vision, which aims to streamline access to public and private sector services and strengthen the fight against fraud.

Multiple local media reports indicate that the idea is part of a wider strategy to enhance the digital commerce sector, which is experiencing steady growth. A draft policy is being considered to strengthen the policing of the digital commerce sector, according to Business Daily.

The government has called for public comments on the draft policy, with a deadline of July 21, as per a MITI statement posted on its X account. 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.

MITI emphasizes that digital commerce is increasingly taking root in Kenya. A unique digital ID is critical to streamline operations and fill trust gaps. The digital commerce market in Kenya is expected to grow by 13-16.4 percent by 2029, with the market expected to exceed $1 billion by that 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.

NTV reports that the digital ID is also intended to combat price-fixing and non-compliance with regulations, which often lead to unfair competition and the exploitation of consumers involved in online purchases. The government plans to verify the identity of buyers and sellers using government-issued ID cards and biometrics.

Kenya already has a national digital ID system called the Maisha Namba digital ID, which is considered the foundation of all digital transactions. The program, now in its third year of implementation, has reported success but still faces challenges, including issues around exclusion and data privacy.

With the new digital commerce ID policy, civil society and rights activists are advocating for public trust, inclusion, and data privacy and security. 

Frequently Asked Questions (FAQS): 

Q: What is the purpose of the digital ID in Kenya?

A: The digital ID in Kenya is intended to facilitate identity verification and authentication in online commercial transactions, streamline access to public and private sector services, and combat fraud.

Q: What is the expected impact of the digital ID on the e-commerce sector in Kenya?

A: The digital ID is expected to enhance consumer protection, promote the development of digital infrastructure, bridge the digital divide, and create a conducive environment for digital trade, leading to significant growth in the e-commerce sector.

Q: How will the identity of buyers and sellers be verified?

A: The identity of buyers and sellers will be verified using government-issued ID cards and biometrics.

Q: What challenges does the Maisha Namba digital ID system face?

A: The Maisha Namba digital ID system faces challenges such as issues around exclusion and data privacy, despite reporting some success in its implementation.

Q: What are the concerns raised by civil society and rights activists?

A: Civil society and rights activists are calling for emphasis on public trust, inclusion, and data privacy and security in the implementation of the digital commerce ID policy. 

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