NAIROBI, Kenya, April 11 – The Competition Authority of Kenya (CAK) is investigating Pembe Flours Mills Ltd for alleged abuse of buyer power.
This comes after Britania Foods Ltd filed a complaint with the competition watchdog over payment delays.
Buyer power is where a big company has bargaining power over its suppliers.
“A complaint on alleged abuse of buyer power by Britania Foods Ltd through delays in payment,” CAK says in its 2021-22 Annual Financial Report.
Early this year, CAK punished Unilever for abusing its supplier bargaining power.
CAK accused the Fast-Moving Consumer Goods (FMCG) firm of influencing prices as well as the number of products sold.
During the period, CAK investigated fifty (50) cases, which represents a 35 percent increase compared to the previous year.
The cases involved retail, manufacturing, insurance, agriculture, telecommunications, construction, distribution, and art.
Out of these, 26 cases were concluded and various remedies applied as provided under Sections 36 and 38 of the Act.
Twenty-four (24) cases were still under investigation at the close of the year under report
“Investigations are ongoing.”
