Operating a legal Internet Service Provider (ISP) in Kenya is likened to navigating the "Serengeti" due to the significant challenges posed by regulatory asymmetry and competition from illegal operators. Compliant ISPs face numerous hurdles, while unlicensed entities thrive by circumventing regulations.

• A legal ISP must obtain a license from the Communications Authority of Kenya, maintain tax compliance with KRA, register under Data Protection, and secure various permits.
• The core issue is that compliant operators bear all regulatory and operational costs, competing with illegal operators who carry almost none of this burden, often offering lower prices.
• This situation creates regulatory asymmetry, undermining healthy competition and signaling that compliance is optional and shortcuts are profitable, which poses a strategic concern for Kenya’s digital infrastructure and national connectivity strategy.