Market –The Competition Authority of Kenya CAK has ordered at least nine steel manufacturing companies to pay sh 338,849,427.89 for inflating market prices.
The CAK investigated the nine entities and established that they had inflated part of their products on the market so that gain huge profits from unsuspecting customers.
This conduct described as cartel conduct definitely increased the cost of construction materials, locally hence affecting important infrastructure.
In a statement seen by this writer, the said business entities allegedly fixed unsubstantiated price levels in a manner they had agreed upon themselves against the law.
“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 only.
It was also established that eight of the nine companies created an artificial shortage of imported steel components so that to find a reason to raise prices.
CAK’s Acting Director-General Adano Wario said the penalty imposed on the said companies will help restore market sanity.
“The penalties are proportionate to the offence, specifically harm to consumers who have been decrying the high cost of steel products in the country,” Dr. Wario said.
Sections of the media 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 Notice.
