KENYA COMPETITION AUTHORITY LAUNCHES RETAIL MARKET ENQUIRY

Thursday, February 02, 2017
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On 27 January 2017, the Kenya Competition Authority (CAK) published its intention to conduct a market enquiry into the branded retail sector pursuant to the provisions of section 18(1)(a) of the Competition Act, 2010. The main objective of the market enquiry is to assess the state of competition in the market (with reference, inter alia, to price, quality and product variety) by examining the multi-layered structure of the market and the conduct of market players.

Among a wide range of goals, the enquiry aims to:

  • map the average route from producer to retailer;
  • evaluate the allocation of shelf space and the relative bargaining power between retailers and suppliers;
  • identify regulatory constraints to competition in the market;
  • establish the nature and extent of exclusive agreements at one-stop-shop destinations and their effect on competition; and
  • examine the pricing strategies that retailers employ especially in relation to new entrants.

The CAK has invited the public to provide information within 21 days from the date of the publication of the Government Notice No. 787, which was 27 January 2017. The deadline for the provision of information is therefore 17 February 2017.

In terms of section 4 of the Competition (Amendment) Act, 2016, which came into force on 13 January 2017, every person, undertaking, trade association or body shall be under an obligation to provide information if requested by the CAK as part of a market enquiry.

For more information, please contact the Bowmans Competition Practice.