Mattress manufacturing firms risk hefty penalties as the State widens investigations into suspected cartel behaviour in the market.
As part of the investigations, the Competition Authority of Kenya (CAK) on Tuesday raided six mattress manufacturers across four counties — with those found culpable for malpractice facing hefty penalties equivalent to 10 percent of their gross turnover in the previous year.
During the raids, CAK confiscated critical electronic equipment, including hard disks and thumb drives, mobile phones, management reports, and sales records, as it sought to unearth evidence of anti-competitive behaviour, including abuse of dominance, collusive tendering, price-fixing, and market allocation. The raided companies are based in Nairobi, Kiambu, Machakos and Kisumu.
The dawn raids, as this sting operation is known, come barely a year after CAK’s decision to slap nine steel firms with a record fine of Sh338.8 million for fixing prices, restricting output, and revising the size of products was upheld by the Competition Tribunal.
Dawn raids, which are allowed by the Competition Act, secure credible evidence that is likely to be concealed, destroyed or altered if advance notice is given.
CAK insisted that the exercises are not a confirmation of guilt or culpability but a key step in an ongoing investigation that the watchdog reckons will take months to complete, depending on factors such as the suspects’ level of co-operation and the volume and complexity of the records under review.
“Foam mattresses are an essential household commodity, used by millions of Kenyan consumers,” said David Kemei, the CAK director-general.
“Our intervention seeks to establish whether collusive practices are undermining the affordability and accessibility of these products for ordinary households.”
Some of the major players in the foam mattress market in Kenya include Bobmil Industries, Super Foam Limited, Vitafoam Products Limited, Ruiru Foam Mattresses Limited, and Comfy Mattress Limited. The identity of those raided by CAK remains unclear.
CAK said it will ensure the safe custody of the data retrieved while allowing the parties and their lawyers to make oral and written submissions before a final determination is made.
Should CAK find the parties guilty, it may restrain them from engaging further in the illegal conduct and order them to reverse or remedy the infringement.
The competition watchdog might also order guilty parties to pay a financial penalty of up to 10 per cent of their gross annual turnover.
The dynamics of the mattress market have shifted as more Kenyans increasingly appreciate the role of quality sleep in overall wellness. Sophisticated mattress types, such as orthopaedic and memory foam, have emerged, creating a lucrative market for manufacturers as consumers splurge on comfortable sleep.
Mattress prices in Kenya range from about Sh4,000 for basic low-density foam options to over Sh150,000 for premium orthopaedic and memory foam designs, reflecting growing demand for comfort and wellness-driven sleep solutions.
CAK said that market surveillance conducted by its case officers, which pointed to concerted cartel-like practices among competitors, informed the intervention in the foam mattress sector.
In the case of steel, investigations exposed a trove of emails, WhatsApp chats, and meeting records that pointed to deliberate collusion among nine steel firms. The steelmakers were linked to collusion and agreements to secretly shrink their products without commensurate price cuts in a bid to increase their gross profit levels.
The authority presented evidence before a tribunal showing top executives and directors in the firms discussing and agreeing to adjust product dimensions, manipulate market supply and fix prices, in what the competition watchdog reckoned undermined fair competition and defrauded consumers.
