Data Protection in Kenya: What Every SME Must Do to Avoid Regulatory Trouble

In Kenya’s increasingly digital business environment, Small and Medium Enterprises (SMEs) collect and process personal data daily—customer phone numbers for M-Pesa transactions, employee details for payroll, supplier contacts, or even visitor logs for retail shops. While this data fuels growth and customer relationships, mishandling it can lead to serious regulatory trouble under the Data Protection Act (DPA) 2019.

The Office of the Data Protection Commissioner (ODPC) enforces the DPA, and enforcement has intensified. In recent years, the ODPC has issued hundreds of determinations, enforcement notices, and penalty notices, with compensation orders to affected individuals exceeding millions of shillings. As of early 2026, the ODPC reported issuing 184 compensation orders, 357 determinations, 134 enforcement notices, and 20 penalty notices since the Act’s enactment. Non-compliance isn’t just a paperwork issue—it’s a financial and reputational risk that can cripple an SME.

At Eliday Solutions Ltd, we specialize in helping Kenyan SMEs achieve practical data protection compliance through assessments, gap analysis, policy guidance, and staff training. This post covers ODPC basics, common violations SMEs face, the steep costs of non-compliance versus affordable prevention through training, and actionable steps to stay safe.

If your SME handles any personal data (and most do), don’t risk penalties. Book a compliance readiness assessment today—fill out our contact form at https://elidaysolutionsltd.com/contact/ for a tailored review and recommendations.

ODPC Basics: Understanding the Regulator and Key Requirements

The Data Protection Act 2019 establishes Kenya’s framework for protecting personal data, inspired by global standards like the EU’s GDPR. It applies to any organization—public or private—that collects, processes, stores, or uses personal data of individuals in Kenya.

The Office of the Data Protection Commissioner (ODPC) is the independent regulator overseeing compliance. Its mandate includes:

• Regulating personal data processing.
• Ensuring adherence to principles like lawfulness, fairness, transparency, purpose limitation, data minimization, accuracy, storage limitation, integrity, confidentiality, and accountability.
• Handling complaints, conducting investigations, issuing enforcement notices, imposing penalties, and promoting awareness.

Key obligations for SMEs under the DPA:

• Register with the ODPC as a data controller or processor if you handle personal data (mandatory for most SMEs, especially in digital, fintech, e-commerce, or those processing sensitive data). Registration is done via the ODPC online portal and is an ongoing process—not a one-time event.
• Appoint a Data Protection Officer (DPO) if your operations involve large-scale processing or sensitive data (many SMEs qualify for exemptions but should check).
• Conduct Data Protection Impact Assessments (DPIAs) for high-risk activities.
• Implement security measures, obtain lawful consent where required, and honor data subject rights (access, rectification, erasure, etc.).
• Report data breaches to the ODPC within 72 hours if they pose risks.

The ODPC has released sector-specific guidance, including a dedicated Guidance Note on Processing by Micro, Small & Medium Enterprises (MSMEs), which provides templates, checklists, and simplified advice for resource-constrained businesses. It emphasizes data minimization, basic security, and practical compliance without overwhelming complexity.

Many SMEs mistakenly believe the law doesn’t apply to them or that a simple privacy policy suffices—both are dangerous assumptions.

Protect your business proactively. Contact us at https://elidaysolutionsltd.com/contact/ to schedule data protection essentials training for your non-technical team.

Common Violations SMEs Commit (Often Unknowingly)

SMEs frequently fall into traps due to limited resources and awareness. Here are the most common violations seen in ODPC cases and guidance:

1. Failure to Register with the ODPC — A criminal offense under Section 18. Many SMEs skip this, thinking they’re “too small,” but registration thresholds consider data volume, industry, and sensitivity. Digital lenders, e-commerce sites, and even recruitment agencies often qualify.
2. Processing Without Lawful Basis or Valid Consent — Collecting data without clear consent, using pre-ticked boxes, bundled consents, or no easy withdrawal option. Unsolicited marketing SMS/calls (e.g., promotional texts without opt-in) are rampant.
3. Inadequate or No Privacy Policy — Assuming a copied policy covers you, or lacking one entirely. Policies must be clear, accessible, and reflect actual practices.
4. Unlawful Use of Images or Personal Data — Using customer/employee photos for marketing without consent, or retaining former employee data indefinitely.
5. Data Breaches and Poor Security — No encryption, weak access controls, or failing to report incidents. Sharing data insecurely (e.g., via WhatsApp for business) exposes vulnerabilities.
6. Ignoring Data Subject Rights — Not responding to access requests, rectification demands, or erasure (“right to be forgotten”).
7. Over-Collection or Poor Data Minimization — Gathering more data than needed (e.g., photocopying full IDs unnecessarily).

Real cases from 2024-2025 show enforcement hitting SMEs and larger firms alike: fines for unsolicited marketing, misuse of images, failure to delete data, and wrongful loan associations. Digital lenders and service providers feature prominently, but retail and marketing SMEs are increasingly targeted.

These violations often stem from “token compliance”—doing the bare minimum without embedding practices.

Don’t let a common oversight lead to trouble. Fill out the contact form at https://elidaysolutionsltd.com/contact/ to book a conformity assessment that maps your data practices and identifies gaps.

The Cost of Non-Compliance vs. the Affordable Path of Training

Non-compliance carries severe consequences under the DPA:

• Administrative Fines — Up to KES 5 million or 1% of annual turnover (whichever is lower) for organizations; up to KES 3 million or imprisonment up to 10 years for individuals/officers.
• Compensation Orders — ODPC has awarded millions in damages to complainants (e.g., over KES 30 million in 2025 cases alone).
• Enforcement Notices and Penalty Notices — Orders to cease processing, delete data, or pay penalties.
• Criminal Liability — Imprisonment for deliberate breaches.
• Reputational and Business Damage — Loss of customer trust, exclusion from corporate contracts (many multinationals require compliance), operational disruptions, and civil lawsuits.

In 2025-2026, enforcement ramped up: ODPC issued numerous fines (e.g., KES 400,000–900,000 in individual cases for marketing violations or image misuse), and compensation payouts surged. SMEs face existential risks— a single fine can exceed annual profits.

Contrast this with prevention costs:

• Basic Compliance Steps — ODPC registration (low or no fee), free templates from ODPC guidance.
• Training Programs — Affordable options exist: half-day or full-day sessions on data protection essentials cost KES 5,000–30,000 per group (often virtual/in-person, tailored for SMEs). Specialized courses (e.g., from local providers) range from KES 20,000–50,000 for comprehensive programs.
• Full Assessments — SME-focused gap analyses and policy development are budget-friendly, often KES 50,000–150,000 depending on scope—far less than a KES 5 million fine.

Investing in training builds internal capability: staff learn consent rules, breach reporting, and safe data handling. It’s a high-ROI step—preventing one violation saves exponentially more.

Our practical, non-technical training programs equip your team affordably. Book now via https://elidaysolutionsltd.com/contact/ and turn compliance into a business advantage.

Practical Steps Every SME Should Take Now

1. Assess Your Data Practices — Map what personal data you collect, why, and how it’s stored/shared.
2. Register with ODPC — Use the portal; check exemptions via guidance.
3. Develop Policies — Create a clear privacy policy and data protection framework.
4. Train Staff — Focus on awareness, consent, and rights.
5. Implement Basics — Consent forms, secure storage, breach response plan.
6. Conduct DPIAs — For high-risk activities.
7. Monitor and Review — Compliance is ongoing.

Leverage free ODPC resources and seek expert help for tailored support.

Conclusion: Compliance Is Protection, Not a Burden

Data protection isn’t optional—it’s a legal and ethical necessity in Kenya’s digital economy. Ignoring it invites regulatory trouble, but proactive steps safeguard your SME, build trust, and open opportunities.

At Eliday Solutions Ltd, we make compliance practical and affordable. Don’t wait for a complaint or fine—act now.

Book your data protection assessment or training session today. Fill out the contact form at https://elidaysolutionsltd.com/contact/. Secure your business and avoid trouble—start with one simple step.