Editor's Review

Carrefour Supermarket was on Tuesday slapped with Ksh1.1 billion penalty by the Competition Authority of Kenya (CAK)

Carrefour supermarket has announced that it will appeal the Sh1.1 billion fine imposed on it by the Competition Authority of Kenya (CAK).  

In a statement on Wednesday, December 20, Carrefour said its holder Al Futtaim was surprised by CAK’s move to fine the supermarket despite the withdrawal of the complaint and renewed partnership agreements that have been signed with Woodlands Company Limited and Pwani Oils Limited.

“Majid Al Futtaim has full confidence in the fairness and integrity of our business practices and is appealing the Competition Authority's decision,” read the statement in part.

Carrefour stated that it maintains a strong network of over 700 supplier partners, 300 of which have been valued partners since we began operations in Kenya in 2016. 

Read More

  1. Why Government Has Launched Crackdown Targeting Social Media Users
  2. Gov't Slaps Carrefour Supermarket With Ksh1.1 Billion Penalty
  3. 8 Top Shopping Malls in Kenya [Photos]
File image of the Carrefour Supermaket.

According to the supermarket chain, Al Futtaim is committed to upholding the highest standards of global best practices, including antitrust and competition laws to encourage fair competition in all aspects of its businesses.

“This includes protecting the purchasing power of Kenyan citizens by offering trusted cost-mindful, locally-sourced, high-quality products; creating more than 7,000 direct and indirect jobs and career opportunities for Kenyan talent; and broadening trade prospects for supplier partners to export their products across Majid Al Futtaim's regional network of operations,” Carrefour stated.

The outlet further said it will continue working to the benefit of its customers, partners, and stakeholders to ensure meaningful contribution to Kenya's development agenda in creating a globally competitive and prosperous nation through sustainable business operations.

CAK on Tuesday accused Carrefour of abusing its buyer power over its suppliers and fined Sh 1.1 billion.

"In executing this mandate, the Authority has pursuant to investigations penalized Majid Al Futtaim Hypermarkets Limited, which trades in Kenya under the brand name Carrefour, a total of Sh. 1,108,327,873.60 for separately abusing its superior bargaining position over two of its suppliers - Pwani Oil Products Limited and Woodlands Company Limited," the notice read in part.

The regulator also ordered Carrefour to refund Shh16.7 million in irregular rebates relating to two suppliers and to amend all its supplier contracts and expunge clauses that facilitate abuse of buyer power.