- Ruto Came With the Bible to Win us – Gachagua - November 24, 2024
- Death and Injuries Reported Following School bus Accident - November 24, 2024
- Kenya to go on With Handing Over JKIA - November 24, 2024
Wednesday, August 23, 2023 –The Competition Authority of Kenya CAK has fined at least nine steel manufacturing companies sh 338,849,427.89 for inflating prices of a section of their portfolio in the market.
The CAK investigated the companies and established that they had inflated part of their products on the market so that gain much within a short period of time.
This conduct was described by the market price regulator as ‘cartel conduct’ that definitely increased the cost of construction materials, locally.
In a statement seen by this writer, the said business entities allegedly fixed unsubstantiated price levels in a manner they had agreed upon themselves.
“The companies engaged in cartel conduct whose effect was to increase the cost of construction of homes and infrastructure by artificially inflating the prices of steel products.
“Contextually, steel products such as bars, pipes, beams, and sheets, account for over 20% of the total cost of constructing a house,” the Authority issued the statement.
This investigation was conducted in August 2020 by the authority which had its officials spread across the country to collect market data on steel products; in a process referred to as field screening.
It was also established that eight of the nine companies created an artificial shortage of imported steel components with an intention of raising prices.
Speaking on the matter, CAK’s Acting Director-General Adano Wario said the penalty imposed on the said companies will help restore market sanity and deter companies from deploying anti-competitive practices while doing business.
“The penalties are proportionate to the offence, specifically harm to consumers who have been decrying the high cost of steel products in the country,” Wario said.
Across check by this writer found out that this penalty is the highest ever imposed by the authority to a manufacturer in Kenya.
So far, the Authority shared that, it is processing five other steel firms over same pricing fraud with a plan to publish the outcome in Kenyan Gazette.
