Kenya & 20 African Countries Gang Up Against Big Companies' Conduct

An aerial view of a section of Nairobi County.
An aerial view of a section of Nairobi County.
skyscraper center

Kenya joined other African competition watchdogs to interrogate the conduct of big companies, especially those operating in the digital space.

The crackdown followed a decision by various African competition watchdogs to investigate how big companies inhibit the running of Small and Medium Enterprises (SMEs).

Led by the Competition Authority of Kenya, the market watchdogs also revealed plans to investigate different products and services offered by big companies and whether they meet the stipulated threshold.

Other issues lined up for probing include sub-standard services and products, systems exposing consumers to online threats and monopolistic policies.

An aerial photo of skyscrapers in a section of Westlands, Nairobi County.
An aerial photo of skyscrapers in a section of Westlands, Nairobi County.
File

To support Kenya, the Common Markets of Eastern and Southern Africa (COMESA) Competition Commission, representing 21 countries, also agreed to investigate obstacles limiting the emergence of African digital platforms.

Among the countries which volunteered to collaborate with Kenya included Egypt, Mauritius, Nigeria, South Africa, Morocco, Gambia and Zambia.

The countries formed a working group which they argued was key to addressing competition and consumer welfare concerning big tech companies.

Additionally, the working group revealed plans to bridge the gap in the legislative instruments of the member countries.

“One of the several activities in the pipeline is a cross-border market inquiry on digital markets focusing on issues that bear on competition and consumer welfare concerns in Africa,” Competition Authority of Kenya boss Adano Wario told a local media publication.

To fast-track the probe, the watchdog warned a local car assembly and manufacturing company for fixing prices.

The watchdog noted that the practice had affected the automotive industry in the country.

Besides warning the firm, the watchdog also exposed an online food retailer for breaching consumer rights in their practice.

Other areas which will be targetted include those in e-commerce, aggregator services, matchmaker services, fintech and advertising firms.

The decision came on the backdrop of President William Ruto's move to welcome investors in different sectors including Tanzanian tycoon Rostam Aziz, who started plans to build a cooking gas plant in Mombasa.

Residents walk in the streets of Eastleigh, Nairobi.
Residents walk in the streets of Eastleigh, Nairobi.
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KNA
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