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The Communications Authority of Kenya (CAK) recently published a draft called:  “Framework for Emerging Technologies Regulatory Sandbox” for tech ecosystems, and is seeking feedback from the public by February 3, 2023.

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The CAK has the responsibility of establishing and reviewing regulations that guide ICT and new technologies, but it has realised that current regulations cannot adequately cater for emerging technologies such as those in fintech, cybersecurity, and other sectors.

The sandbox is an evidence-based, controlled environment in which such fintech startups and other innovators can conduct live tests of new services and products that do not easily fit in the current regulatory framework. The Sandbox Framework aims to provide regulators with the understanding they need to encourage innovation, growth, and healthy competition in the ICT sector.

Also Read: Kenya’s Fintech Took 30% Of Tracked Kenyan Tech Startups In 2022. 

The sandbox framework can reduce delays that are due to regulatory uncertainty by one-third. By removing regulatory uncertainty, it can also increase access to financing, lead to more solutions potentially being introduced to the market, contain the impact of failure on consumers and the innovator, and provide incubatory acceleration for the startups.

The Sandbox framework isn’t a novel idea. It has been adopted in several ways in African countries like Mauritius, Rwanda, Sierra Leone, and Mozambique. Even in Kenya, some regulatory authorities have embraced the use of regulatory sandboxes, specifically in the financial sector.

The CAK is inviting Kenyans who have comments on the proposed guidelines to send them via email to rpqm@ca.go.ke by February 3, 2023.

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