The Worldcoin controversy has sent shockwaves through Kenya’s digital landscape, uncovering potential acts of espionage and posing a significant threat to the nation’s statehood. Operating in various locations across Nairobi, including malls and learning institutions, Worldcoin allegedly mined data from Kenyan citizens by scanning their irises in exchange for cryptocurrency tokens. As the investigations unfold, it has become evident that the associated foreign companies, Tools for Humanity (TFH) Corp and Tools for Humanity (TFH) GmbH, may have been operating illegally in Kenya. This article analyzes the implications of the Worldcoin scandal and the urgent need for comprehensive legislation to safeguard the rights and data of the Kenyan public.

The ad hoc committee investigating the Worldcoin matter has raised serious concerns over alleged acts of espionage and the threat posed to Kenya’s sovereignty. Led by Narok West MP Gabriel Tongoyo, the committee is calling for the Directorate of Criminal Investigations to probe TFH Corp and TFH GmbH for their illegal operations in Kenya. These companies are suspected of violating crucial Kenyan laws, including the Data Protection Act, Consumer Protection Act, and Computer Misuse and Cybercrimes Act. Shockingly, investigations have revealed that neither company appears in the Business Registration Services database, questioning their legal authority to conduct business in the country.

Worldcoin’s questionable activities have highlighted significant breaches of the Data Protection Act of 2019. The company applied for registration as a data controller a year after starting its operations in Kenya, which clearly violates the law. Suspicion remains around the secure storage of collected data and the possibility of retraction and deletion when necessary. Additionally, concerns have arisen regarding the transfer of personal data outside Kenya, raising doubts about compliance with Section 48 of the Data Protection Act. With approximately 350,000 Kenyans registered under Worldcoin’s activities, it is imperative to address these violations to protect individuals’ rights and data.

The Rapidly Evolving Digital Economy Demands Legislative Amendments

The Worldcoin controversy has exposed the urgent need for comprehensive legislation and oversight in Kenya’s digital economy. As the nation embraces the benefits of new technologies, it must simultaneously prioritize the protection of its citizens’ rights and data. Kenya’s National Assembly members have denounced Information, Communication and the Digital Economy Cabinet Secretary Eliud Owalo for providing misleading information regarding Worldcoin’s operations. Owalo initially claimed that Worldcoin operated within the parameters of the Data Act 2019 but later denied making such statements during the committee’s proceedings. These inconsistencies underline the necessity for harmonized laws to regulate the cryptocurrency regime and prevent misinformation from government officials.

To address the challenges presented by the Worldcoin controversy and emerging digital technologies, the ad hoc committee has put forward several recommendations. Legislative intervention is crucial to govern the collection of biodata, considering its implications for privacy, security, health concerns, and human rights. Members of the National Assembly are also advocating for amendments to the law, granting the Office of the Data Protection Commission (ODPC) greater discretion in imposing administrative fines and aligning the Data Protection Act with global standards. The establishment of a board to oversee the Commissioner’s daily operations and ensure stricter compliance with data protection matters is also being proposed. Furthermore, stringent requirements for foreign companies seeking registration as data processors or controllers in Kenya are being considered, including proof of registration with local regulatory bodies and full disclosure on the utilization and storage of collected personal and sensitive data.

As Kenya navigates the ever-evolving landscape of digital innovations, it must act swiftly to address the Worldcoin controversy and prevent similar data breaches in the future. Legislative amendments, strengthened regulatory bodies, and stringent requirements for foreign companies are essential steps towards safeguarding Kenyan citizens’ rights and data. By implementing comprehensive legislation, Kenya can ensure the responsible and ethical operation of companies within its borders while embracing the numerous benefits that digital technologies bring to its economy and society.

Regulation

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