Kenya's Digital ID Plan to Enhance Online Trade, Combat Fraud

Published Date : 7/18/2025 

Kenya's Ministry of Investments, Trade and Industry (MITI) is considering a draft policy to introduce a compulsory digital ID for online commercial transactions. The initiative aims to streamline access to services, enhance consumer protection, and combat fraud in the growing 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 broader digital ID vision aimed at streamlining access to public and private sector services and strengthening the fight against fraud.

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, as per 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 grow by between 13-16.4 percent by 2029, with the market expected to exceed $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. 

Frequently Asked Questions (FAQS): 

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

A: The proposed 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 strengthen the fight against fraud.

Q: How will the digital ID system impact e-commerce in Kenya?

A: The digital ID system is expected to provide a structured framework for the development, growth, and regulation of e-commerce in Kenya, enhancing consumer protection and promoting digital infrastructure development.

Q: What are the key components of the draft policy?

A: The draft policy includes the introduction of a trust mark and digital seller ID system to enhance consumer protection, promote digital infrastructure, bridge the digital divide, and support micro, small, and medium enterprises (MSMEs).

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

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

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

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

More Related Topics :