Kenya raises .KE domain name prices, market pattern changes

According to the latest news, the Kenya Network Information Center (KeNIC) has adjusted the registration price of .KE domain names. From February 3, the registration fee for the second-level .KE domain name has increased to 2,500 Kenyan shillings (about 18.50 euros) per year, and the third-level domain name requires 999 Kenyan shillings (about 7.50 euros) per year. The domain name transfer fee is also set at 999 Kenyan shillings.

The reason for the price increase is inconsistent with the current market situation

KeNIC pointed out that the factors driving the price increase include sustainable development needs, investment plans to promote growth, and the impact of inflation.

However, in recent years, the total number of .KE domain name registrations has always fluctuated around 109,735, and the growth has stagnated. The price reduction measures for third-level domain names nearly five years ago have not brought a significant increase in new registrations.

Market challenges facing .KE domain names

1. Competition for generic domain names: Generic top-level domain names such as .com are fiercely competitive, diverting a large number of potential registered users.

2. Management risk concerns: In terms of domain name management, the potential risk of political intervention also makes many users worried.

3. Platform substitution impact: With the rise of social media and e-commerce platforms, many Kenyan companies have turned to social platforms such as WhatsApp, Facebook, TikTok, and e-commerce platforms such as Jiji and Jumia to expand their business, further reducing their dependence on .KE domain names.

The increase in registration fees this time is likely to be passed on to end customers, which may lead to a further decline in the attractiveness of .KE domain names to users.

Expert advice and market outlook

ICANN expert Mwendwa Kivuva believes that KeNIC needs to work hard to improve trust, optimize pricing models, strengthen the promotion of domain name advantages, and ensure public participation in decision-making. "KeNIC must focus on building trust, simplifying pricing models, vigorously promoting the benefits of .KE domain names, and ensuring that the public is effectively involved in the decision-making process."

Whether this price increase will hinder the development of the .KE domain name market or create opportunities for future investment remains to be seen.

Information source: domain-recht.de