The Competition Authority of Kenya (CAK) has announced that it has fined Carrefour supermarket Ksh. 1.1 billion for abuse of buyer power over its supplies.

In addition to the penalty, Carrefour has been mandated to reimburse Ksh. 16.7 Million in irregular rebates to affected parties. The CAK has further directed Carrefour to expunge all clauses within its contracts that enable or promote the abuse of buyer power.

CAK says that Carrefour abused its bargaining position over two of its suppliers -Pwani Oil Products and Woodlands Company Limited.

CAK started investigations into the matter after Woodlands presented a complaint in December 2022 accusing Carrefour of engaging in ABP contrary to section 24A of the Competition Act.

Pwani Oil on the other hand presented a complaint to CAK in August 2022 claiming that Carrefour deducted various rebates and other fees from its invoices, charged listing and marketing fees, declined to negotiate a supply contract, and threatened to delist the processor if it did not accept its terms.

You can read the full statement by CAK.