Nudging for Market Integrity: A Behavioural Economics Framework for Consumer Protection in Kenya (2021–2026)

Consumer protection in emerging markets often relies on traditional regulatory tools, which may be insufficient to address subtle behavioural biases exploited in unfair commercial practices. This analysis examines the potential for integrating behavioural insights into the national consumer protection framework. This policy analysis article aims to develop and critically assess a behavioural economics framework for enhancing market integrity and consumer welfare. It evaluates the applicability of specific 'nudge' mechanisms within the existing legal and institutional context. The analysis employs a structured policy review, synthesising principles from behavioural science with a critical examination of current consumer protection legislation, enforcement mechanisms, and market practices. A diagnostic assessment identifies key behavioural vulnerabilities in consumer decision-making. The diagnostic identifies that over-reliance on information disclosure is a key weakness, as consumers frequently exhibit present bias and inertia, rendering standard disclosures ineffective. A principal finding is that simplifying choice architecture and implementing strategic default rules in service contracts could significantly reduce exploitative inertia. A behavioural economics approach offers a complementary and potent toolkit for strengthening market integrity. Its successful implementation requires careful design to avoid paternalism and must be embedded within robust traditional enforcement structures. Policymakers should establish a dedicated behavioural insights unit within the national consumer protection authority. Priority interventions should include mandating standardised, simplified key fact statements for financial products and revising cooling-off period regulations to use opt-out defaults. behavioural economics, consumer protection, nudge, market integrity, policy design, regulatory strategy This article provides a novel, structured framework for translating behavioural science into actionable consumer protection policy, specifically tailored to the behavioural market failures prevalent in an emerging economy context.