Top 5 Legal Risks Businesses Face Under Kenya’s Data Protection Law

By admin
May 8, 2025

Top 5 Legal Risks Businesses Face Under Kenya’s Data Protection Law – WKA Advocates Explains

In Kenya’s fast-growing digital economy, personal data has become one of the most valuable assets for businesses. From e-commerce platforms, financial institutions, and healthcare providers to technology startups and marketing agencies, organizations are increasingly collecting, processing, storing, and sharing customer information.

However, with the advent of the Data Protection Act, 2019, businesses now face significant legal obligations. Non-compliance with Kenya’s data protection laws can result in hefty fines, operational bans, and reputational harm.

At WKA Advocates, we regularly advise clients on data protection compliance and have seen how many businesses unknowingly expose themselves to legal liabilities. This article explores the top five legal risks under Kenya’s Data Protection Act and offers practical solutions for compliance.

1. Failure to Register with the Office of the Data Protection Commissioner (ODPC)

The Legal Risk:

Under the Data Protection (General) Regulations, 2021, every data controller or data processor must register with the ODPC if they process personal data in Kenya—particularly when handling sensitive data or conducting large-scale data processing.

Failing to register constitutes a criminal offense under Section 18 of the Act and can lead to:

Monetary fines of up to KES 5 million or 1% of annual turnover
Suspension of business operations
Criminal liability for directors and company officers

Real-World Example:

A recruitment agency handling thousands of CVs, ID cards, and academic records may think of itself as an SME. However, its data volume qualifies it as a high-risk data processor. Without ODPC registration, it is in breach of the law.

WKA Advocates Recommends:

Conduct a compliance risk assessment
Register early to prevent regulatory action
Consult a data protection lawyer in Kenya to streamline the registration process

2. Lack of Informed and Documented Consent

The Legal Risk:

Consent is a core requirement under Kenya’s Data Protection Act. Businesses must ensure consent is:

Freely given
Specific and informed
Unambiguous
Documented

Common violations include:

Pre-ticked checkboxes on websites
Implicit or bundled consent
No option for users to withdraw consent
Failure to keep records proving consent

Consequences:

Regulatory penalties
Lawsuits from data subjects
Damage to brand reputation

Real-World Example:

A digital marketing agency purchases third-party email lists and uses them for outreach. Without proof of consent from recipients, the agency faces a high risk of fines and blacklisting.

WKA Advocates Recommends:

Use clear opt-in consent mechanisms
Maintain detailed consent logs
Provide simple opt-out and withdrawal processes

3. Poor Data Security Practices Leading to Data Breaches

The Legal Risk:

Section 43 of the Act requires businesses to adopt technical and organizational security measures to protect personal data from unauthorized access, leaks, or loss.

Common data security lapses include:

Unencrypted databases
Weak passwords and lack of two-factor authentication (2FA)
Vulnerable mobile apps or websites
No breach response strategy

If a data breach occurs:

You must notify the ODPC within 72 hours
You may be required to compensate affected individuals
You risk regulatory sanctions and legal claims

Real-World Example:

A private hospital suffers a cyberattack that compromises patient records. Due to poor encryption and lack of a breach response protocol, it faces legal action and a damaged public image.

WKA Advocates Recommends:

Conduct regular cybersecurity audits
Train staff in data privacy best practices
Encrypt sensitive data and restrict access
Develop a data breach incident response plan

4. Ignoring Data Subject Rights

The Legal Risk:

Data subjects in Kenya have the following rights under the Data Protection Act:

Right to access personal data
Right to rectify or erase data
Right to object to data processing
Right to data portability
Right to be informed about data usage

Failure to respect these rights may lead to:

Formal complaints to the ODPC
Enforcement actions
Financial and reputational penalties

Real-World Example:

An e-commerce business ignores a customer’s request to delete their account and associated data. The customer files a complaint with the ODPC, prompting an investigation and public enforcement notice.

WKA Advocates Recommends:

Implement procedures for handling data subject requests
Train staff, especially customer service teams, on privacy rights
Document all communications and actions taken for compliance proof

5. Unlawful Sharing or Cross-Border Transfer of Personal Data

The Legal Risk:

Section 48 of the Act prohibits sharing or transferring personal data outside Kenya unless:

The recipient country offers adequate data protection standards
The data subject provides explicit consent
There are binding corporate rules or contractual clauses in place

Local sharing of data without a legal basis is also prohibited.

Violations can lead to:

Regulatory bans and fines
Suspension of data operations
Civil lawsuits from affected individuals

Real-World Example:

A fintech firm transfers customer data to an offshore server in a country without proper data laws. Without safeguards or customer consent, this violates the DPA.

WKA Advocates Recommends:

Conduct a legal review of all international data transfers
Draft data sharing agreements with third parties
Avoid cross-border transfers unless they’re lawfully justified
Perform due diligence on cloud providers and vendors

Conclusion: Take a Proactive Approach to Data Protection Compliance

Compliance with Kenya’s Data Protection Act is not optional—it’s essential. Data protection is a strategic asset that builds trust with customers, investors, and regulators.

At WKA Advocates, we help businesses:

Conduct data protection impact assessments (DPIAs)
Develop privacy policies and consent strategies
Implement ODPC registration
Respond to regulatory actions

Don’t wait for a complaint or investigation to take action. Partner with experienced data protection lawyers in Kenya today.

Frequently Asked Questions (FAQs)

1. What is the biggest data protection risk for my business in Kenya?
Failure to register with the ODPC is the most immediate risk, especially for businesses that process sensitive or large-scale data.

2. How do I know if I need to register with the ODPC?
If your organization processes personal data regularly, you likely qualify as a data controller or processor. Contact WKA Advocates for a risk-based compliance assessment.

3. What happens if I violate someone’s data rights?
You may face investigations, fines, legal action, and reputational damage.

4. Are there criminal penalties under Kenya’s Data Protection Act?
Yes. Offenses like obstruction of ODPC investigations or unlawful disclosure of data can lead to criminal prosecution.

5. How quickly must I report a data breach to the ODPC?
You must report within 72 hours of discovering the breach.

6. What makes consent valid under Kenyan law?
Consent must be explicit, informed, specific, and documented. Pre-ticked boxes or bundled consent don’t qualify.

7. Can I share customer data with third parties like advertisers?
Only with explicit consent or if legally justified. Always use a data sharing agreement.

8. What are the fines for non-compliance?
The ODPC may fine you up to KES 5 million or 1% of your annual turnover, whichever is greater.

9. Does the law apply to foreign companies?
Yes. Any company processing personal data of individuals in Kenya is subject to the Act.

10. How can WKA Advocates help with compliance?
We offer end-to-end support: from audits and policy drafting to staff training and ODPC representation.

Need Help with Data Privacy Compliance in Kenya?
Contact WKA Advocates today for expert legal support in navigating Kenya’s evolving data protection landscape.