Billionaire Narendra Raval’s Devki Steel Loses Bid to Overturn Ksh46.3 Million Fine

The Competition Authority Tribunal has upheld a Ksh 46.3M penalty against Kenyan billionaire Narendra Raval’s Steel Firm Devki, maintaining that the company engaged in price fixing and output restriction.

This fine was part of a larger penalty imposed on nine steel manufacturers totaling Ksh 338 million by the Competition Authority of Kenya (CAK).

“The tribunal has considered all the evidence and arguments submitted by the Appellant and Respondent together with the authorities from both parties in support of their case in total and we accordingly arrive at the inevitable conclusion that the appeal is without merit as the Appellant has failed to prove its case beyond a reasonable doubt,” read the ruling in part.

In the present circumstances we therefore order as follows:-

That this appeal be and is hereby fails and dismissed.

That the Respondent’s decision dated 17 August 2023 be and is hereby upheld.”

Also Read: Devki Multi Billionaire Narendra Raval Speaks After Ksh2 Billion Tax Uproar

Narendra Raval’s Devki Steel Firm to Pay Ksh46.3 Million After Tribunal Ruling

Devki Steel had filed an appeal against the Authority’s decision, seeking to have the ruling reconsidered and a fresh hearing conducted.

The company also sought to have the entire decision set aside, along with all related orders and penalties.

In its plea, Devki further requested that the costs of the appeal be awarded in its favour. The Tribunal rejected all grounds of appeal.

This follows a 2024 ruling by CAK, which found that Devki, along with 8 other steel firms, had colluded to fix prices and restrict output, actions that are prohibited under the Competition Act.

The competition watchdog investigations revealed the firms had agreed on uniform pricing and coordinated the timing of price adjustments.

The Authority said it launched investigations into the steel manufacturing and distribution sector in 2020 after receiving intelligence that players were involved in collusive practices, in violation of Section 21 of the Competition Act.

According to CAK, price fixing and output restriction are illegal because they hinder fair competition in the market.

The Authority emphasized that such practices harm consumers by inflating prices and reducing options, while also discouraging innovation among businesses.

“Cartels are conceived, executed, and enforced by businesses to serve their commercial interests, and to the economic harm of consumers,” said Dr. Adano Wario, who was the Acting Director-General of CAK at the time.

He said the penalty imposed on the firms was proportionate to the gravity of the offence—particularly the impact on consumers who had long complained about the rising cost of steel products in the country.

“This penalty is the highest ever imposed by the Authority and should send a clear message that cartel conduct is illegal under the Competition Act,” Dr. Wario added.

“In a liberalized market like ours, the forces of supply and demand should determine prices—free from manipulative business practices.”

Also Read: Narendra Raval: Profile, Education, Family & Career of Devki Billionaire

CAK Imposes Millions in Fines on Steel Firms Over Price Fixing

Under the Competition Act, CAK has the authority to impose a fine of up to 10 percent of a company’s gross annual turnover from the year preceding its decision.

The severity of such penalties is determined by several factors, including the scale and duration of the violation, consumer harm, and the level of cooperation by the companies involved.

CAK said the fines aim not only to punish anti-competitive behavior but also to deter companies from adopting such practices as part of their business strategies.

The other eight companies penalized for price fixing include Nail and Steel Products Limited, which was fined Ksh22.8 million, and Brollo Kenya Limited, which was to pay Ksh9.4 million. Blue Nile Wire Products Limited was also fined Ksh9.2 million.

Tononoka Rolling Mills Limited faced the highest individual penalty among the group, at KSh62.7 million.

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