The Competition Authority of Kenya (CAK) has received a complaint over alleged attempts by several real estate firms to control property developments along Nairobi’s Riverside Drive through legal challenges.
According to the authority’s latest annual report, the complainant claimed the firms sought to frustrate its proposed development by obtaining court orders before the National Environment Tribunal.
The complaint alleged that the legal actions were intended to restrict competing developments along the prime Riverside Drive corridor.
However, CAK said it closed the matter after finding that existing court orders related to the proposed development barred the authority from intervening.
“The matter was closed as it was observed that there were subsisting court orders against the proposed developments by the complainant, which in turn barred the Authority from intervening in the matter,” the report states.
CAK Investigates Bread, Sugar and Mattress Sectors Over Suspected Cartels
Further, the authority launched investigations into alleged cartel-like practices in the bread, sugar and mattress manufacturing sectors as part of its efforts to curb anti-competitive conduct.
According to the authority’s 2024/25 annual report, CAK initiated a screening exercise into the bread manufacturing sub-sector following concerns over suspected cartel behavior among market players.
The authority also opened an investigation into the sugar industry to establish whether firms had engaged in cartel-like practices that could have distorted competition in the market.
In addition, CAK launched a separate investigation into suspected cartel conduct among manufacturers and distributors of foam mattresses in Kenya.
The authority said all three investigations remain ongoing as it seeks to determine whether the firms involved breached the Competition Act.
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Competition Authority Warns Real Estate Developers Against Exclusive ISP Deals
The findings come more than a year after CAK warned real estate developers and internet service providers (ISPs) against entering into exclusive broadband agreements that locked out rival providers.
In June 2025, the authority said exclusive arrangements granting a single ISP access to an entire residential development violated the Competition Act by restricting competition and limiting consumer choice.
CAK warned that companies found engaging in such anti-competitive practices risked penalties of up to 10% of their annual gross turnover or imprisonment for up to five years.
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The authority also maintained that the agreements denied consumers the benefits of competitive pricing, improved service quality and innovation by preventing them from choosing their preferred internet service provider.
“It has come to the Authority’s attention, through market surveillance and numerous consumer complaints, that property developers and estate managers are signing exclusive contracts with specific Internet Service Providers and restricting competing firms from offering alternative services,” said Director-General David Kemei.
“This conduct by ISPs denies consumers the benefits of competition, which include fair pricing, enhanced service quality, and innovative solutions,” Kemei added.
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