More companies are in the spotlight as investigations by the competition watchdog increased by over 50 percent since July 2024, amid growing complaints over misconduct by market players.
The latest data from the Competition Authority of Kenya (CAK) shows that the number of consumer cases under investigation rose from about 500 by June last year, to more than 800 since July 2024.
Since 2022, the CAK investigations have more than doubled, reflecting the high number of Kenyans taking on corporates for instigating misconducts such as abuse of buyer power, price fixing and other anti-competitive conducts.
“Because of advancements in technology, many people are able to reach us through our portal and the different channels we have provided. People are getting more aware of their rights and where to go when there are such issues,” said CAK Director-General David Kemei.
Since 2021, the authority has penalised companies across different sectors more than Sh1.4 billion, for price-fixing, abuse of buyer power, and cartel-like behavior. The punished companies were from the steel, cement, cooking oil, and retail sectors.
The competition watchdog says the high growth in the number of consumer complaints has informed its decision to establish a forensic lab, to aid in the growing number of investigations where expertise is required.
“Investigations and resolving of competition issues takes some lead time and that’s why we are making investments like having the forensic lab to make us more productive in investigations and closing cases as soon as possible,” Mr Kemei said.
CAK Chair Shaka Kariuki said the authority decided to create the forensic lab since relying on third parties for analysis in order to make decisions was expensive. He said the lab would help the authority in complex evidence analysis during investigations.
“We have invested Sh45 million to set up a forensic lab. In the past, we’ve been going to third parties to help us with some of this forensic analysis which has been very expensive,” Mr Kariuki said.
While the competition watchdog has not tabulated a list of sectors most entangled in consumer complaints in the current fiscal year, previous years have had the insurance and digital lending sectors record the highest number of complaints.
Businesses dealing in the sale of iron sheets and e-commerce enterprises have also had many complaints, particularly on non-delivery of purchased items.
The CAK says that through its intervention, powerful corporates have released over Sh2.7 billion that they owe small suppliers.
There has been a growing number of small businesses supplying big companies taking them before the CAK, with complaints ranging from delayed payments to being forced to enter into unfavorable contracts.
