The Competition Authority of Kenya (CAK) seeks legal backing to auction properties of companies unwilling to pay penalties despite exhausting all appeal avenues.

In the draft Competition Amendment Bill 2024, CAK seeks to repeal Section 89 of the Competition Act and replace it with 92.

Currently, Section 89 of the Competition Act only provides for criminal prosecution.

“The amendment to this section for example is intended to provide the Authority with a civil option of recovering penalties that remain unpaid after a party has exhausted their rights of appeal to the Competition Tribunal and High Court,” CAK said in a statement.

Further, the proposed amendment proposes adopting a recovery method that aligns with the existing civil procedure rules.

Did you read this?

  1. CAK Fines SIKA International Kes 17.5M For Merger Without Approval
  2. COMESA Warns On Unsafe Shampoo Contained In Dark And Lovely
  3. Grade 7 Students To Learn Consumer Rights Using Poems, Music

“A majority of the undertakings we have penalized in the past abide by the law and honor payment of fines within the set timelines.”

“However, there are a few businesses that, even after exhausting all their appeal avenues, still do not settle the payments,” CAK said.

“In such instances, instead of forwarding the cases for criminal prosecution under the Office of the Director of Public Prosecution (ODPP), recovery through civil procedure is deemed more appropriate and will enhance compliance with the Competition Act.”

CAK has already invited members of the public and stakeholders to submit their views and opinions on the bill.

“Section 9 of Cap. 504, which is proposed to amend Functions of the Authority. The functions of the Authority shall be to recognize consumer bodies duly registered under the appropriate national laws as the proper bodies, in their areas of operation, to represent consumers before the Authority,” the draft Bill reads.

“Section 24A of Cap. 504, which is proposed to amend 24A on Abuse of buyer power. Where the Authority establishes that a sector or an undertaking is experiencing or is likely to experience incidences of abuse of buyer power, it may monitor the activities of the sector or undertaking and ensure compliance by imposing reporting and prudential requirements.”