New E-Commerce Alliance Established in Kenya
Kenya has launched the Kenya E-Commerce Alliance (KECA), which will bring together companies, technology providers, and public institutions under one roof in the country’s rapidly growing e-commerce sector. Established as part of the Digital Trade Congress 2026 held in Nairobi, the alliance will focus on reducing payment, logistics, taxation, consumer protection, and cross-border trade barriers to online commerce.
KECA will bring together online marketplaces, payment companies, logistics providers, technology firms, professional services companies, and policymakers. The organization’s priorities include industry representation, information sharing, capacity building, and supporting access to new markets.
Barriers in Cross-Border E-Commerce on the Agenda
KECA CEO Martin Muli stated that Kenya has built a strong digital infrastructure and said that the next stage is to make it easier for companies to trade digitally, across borders, and at a larger scale. Muli also stated that the alliance will provide a platform where the industry can raise the challenges it faces and develop practical solutions with the government.
Particularly for SMEs, interoperability of payment systems, cross-border deliveries, different regulations, and consumer trust are cited among the main challenges. GIZ Kenya Digital Trade Director Jennifer Chiku also emphasized that successful e-commerce markets develop not only through marketplaces, but through strong ecosystems that enable digital payments, consumer trust, and the seamless movement of goods across borders.
Tax Regulations in Digital Trade Come to the Fore
The Kenya Revenue Authority (KRA) applies a 16 percent VAT on digital services. While resident businesses are subject to an annual VAT registration threshold of 5 million Kenyan shillings, non-resident digital platforms generating income in the country are subject to a Significant Economic Presence Tax of 3 percent of gross turnover. Resident online sellers are required to declare their earnings, pay the applicable income or corporate taxes, and register with the eTIMS electronic invoicing system.
Artificial Intelligence and Technology Companies in the E-Commerce Ecosystem
The new structure directly incorporates technology providers into the e-commerce value chain alongside payment and logistics companies. Software, data, and artificial intelligence-based technologies used in retailers’ digital operations are also part of the technology side of this expanding digital ecosystem. Kenya aims to expand access to regional markets through digital platforms under the African Continental Free Trade Area (AfCFTA).
Kenya’s E-Commerce Market Is Moving Toward $4 Billion
Kenya’s e-commerce market is worth approximately $2.6 billion (336.7 billion Kenyan shillings). The market ranks as Africa’s third-largest e-commerce economy. With increasing internet penetration, the growing use of digital payments, and the expansion of online shopping, the market is expected to reach approximately $4 billion by 2029.