Kenyan authorities are set to tighten controls in the e-commerce sector through a proposed digital identity system for traders and a national trustmark that will certify online sellers.

The new policy seeks to address rising concerns over fraud, lack of seller accountability, and poor consumer protection in digital transactions.

According to the Ministry of Investments, Trade and Industry, the government plans to implement a digital seller identity system alongside a national e-commerce trustmark to help verify trader credentials, establish accountability, and build trust in online platforms.

“Institutionalise a national e-commerce trustmark and digital seller identity system to enhance consumer trust in local platforms through verified seller credentials, dispute resolution mechanisms, and accountability measures,” reads the proposed policy.

“This would reduce the cases of clients not receiving exactly what they ordered,” the document adds.

The digital identity system is designed to confirm the identity of sellers using technology-based verification tools such as national ID checks, facial recognition, selfie verification, and screening against fraud watchlists.

This will help expose fake traders, reduce scams, and ensure sellers meet set regulatory standards.

On the other hand, the e-commerce trustmark will be a badge or logo displayed on certified online shops to assure buyers that the store has been vetted and meets the required privacy, safety, and service standards.

It will act as a visual guarantee of reliability, helping customers distinguish between legitimate and unverified sellers.

In addition to improving transparency in online trade, the draft policy proposes the creation of a national e-commerce innovation and investment fund.

The fund will be designed to offer targeted financial support to small businesses and startups in areas such as logistics, digital payments, and online marketplaces, with the aim of encouraging innovation and scaling operations.

The ministry says the proposed reforms respond to growing challenges in the online trading space, including poor coordination among regulators, consumer rights violations, and price manipulation by dominant players.

The policy aims to streamline enforcement, set clear compliance rules, and ensure fair competition within the fast-growing e-commerce industry.