Wednesday, February 15, 2023

The Extraterritorial Nuance of the Data Protection Act


Data Protection is an emerging legal subject that has captured the attention of many jurisdictions. Kenya finally caught on with the rest of the world when it enacted the Data Protection Act (DPA) 2019 which was operationalized in November 2020 when the Data Commissioner, Immaculate Kassait, was appointed. The Act established the Office of the Data Protections Commission (ODPC) which has now began its operations under the Act. Very recently the ODPC was seen flexing its muscles when it issued its first fine of Kenya Shillings Five Million (Kshs 5,000,000/-) against Oppo for breaching the provisions of the DPA.

The DPA has borrowed heavily from the General Data Protection Regulation of the European Union which is lauded to be the most progressive data protection regulation in the world. It is therefore safe to state that the DPA is equally progressive; it creates rights of data subjects, provides for principles of data protection, provides for commercialization of data, creates offences, prescribes penalties and so on.

The scope of its application is wide as it applies to any data processor or controller processing data belonging to data subjects in Kenya whether or not the data processor or controller is established or ordinarily resident in Kenya. The Act possesses a unique quality of extraterritorial application which may pose a practicality challenge.

Although the extraterritorial clause is standard clause for many Data Protection legislation across the world, these clauses are difficult to enforce as and of themselves due to the old-age international law principles of sovereignty of states. To mitigate this, nations have resorted to pursuing bilateral agreements thereby ensuring that their municipal data protection statutes are enforced and that each other's sovereignty is protected. A good example is the Privacy Shield Agreement between the United Stated and the European Union. This agreement imposes upon the US a responsibility to in place data protection measures that are aline with the requirements of the EU General Data Protection Regulation without which the EU could not allow data transfer to the  US.

The internet has turned the world into a global village; completely breaking national boundaries and making communication very easy.  For instance, social media has developed into one of the most popular tool of communication. There is no escaping it; its utilization is widespread and its effects are global. Many Kenyans have access and have created profiles on social media platforms such as Facebook, Instagram, Twitter, Whatsapp, Youtube, Linkedin, Titktok . These social media platforms are created and owned by companies that are based abroad, with some situated in the United States, Ireland  and others in China 

A reading of section 4 (b)(ii) of the DPA suggests that the Act applies to the companies owning social media in spite of their nationality provided that they are processing the personal data of data subjects located in Kenya. 

There are numerous amounts of personal data protection in the hands of the companies owning social media networks. In order to ensure that the data belonging to Kenyan social media users is protected as envisioned by the Act, the Data Commissioner may need to work towards entering into bilateral agreement with countries that host the companies owning popularly social media platforms by Kenyans. The DPA mandates the Data Commissioner to promote international cooperation in matters relating to data protection which mandate will, in my estimation, be discharged achieved progressively. 

The law must not be left to operate in a vain and as such the ODPC should take up the burden of ensuring that all the provisions of the DPA have a concrete application. It shall be interesting to witness how they the ODPC will ensure that section 4(b)(ii) is made practical.