The Competition Authority of Kenya (CAK) has conducted unannounced inspections to tame out uncompetitive practices in the country.
Dawn raids were conducted on six major foam mattress manufacturers and distributors in Nairobi, Machakos, Kiambu, and Kisumu.
The operations are part of an ongoing investigation into suspected anti-competitive practices in the sector.
“Foam mattresses are an essential household commodity, used by millions of Kenyan consumers. Our intervention seeks to establish whether collusive practices are undermining the affordability and accessibility of these products for ordinary households,” said David Kemei, CAK Director General.
During the raids, the Authority retrieved critical electronic and physical evidence for forensic analysis, including laptops, mobile phones, hard disks, thumb drives, management reports, and sales records.
Legal Basis and Scope of CAK Investigation
The dawn raids were conducted under Sections 31 and 32 of the Competition Act, which empower the Authority to enter the business premises of persons believed to possess relevant information.
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The law allows officials to inspect goods, documents, and records necessary to confirm the existence of restrictive trade practices, such as abuse of dominance, collusive tendering, price-fixing, and market or customer allocation.
According to the authority, the intervention in the foam mattress sector was informed by actionable intelligence from the Authority’s case officers’ market surveillance.
Surveillance suggested a potential concerted practice of a cartel nature between competitors.
Rights of the businesses, including access to legal representation, were upheld to minimize business disruption.
Competition Authority of Kenya Investigations Timeline
The Authority has also clarified that investigations into suspected anti-competitive conduct do not have a fixed statutory timeline, noting that each case is determined by factors such as the number of parties involved, their level of cooperation, and the volume and complexity of evidence to be reviewed.
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CAK also emphasized that despite the absence of a strict deadline, it remains bound by the Constitution of Kenya to ensure fair administrative action that is expeditious, efficient, lawful, reasonable, and procedurally sound.
“Based on our experience handling complex cases, this investigation is reasonably expected to take several months to complete. However, our proactive measures such as upskilling our case officers, installation of an in-house modern forensic laboratory, and thorough planning ahead of the searches will improve the case completion time,” added Kemei.
Upon completing the review of evidence collected during the unannounced inspections, the Authority will determine the next course of action in line with its established guidelines.
It also assured that all retrieved data will be securely handled, while affected parties and their legal representatives will be given an opportunity to present both oral and written submissions before a final decision is reached.
If violations of the Competition Act are established, the Authority may restrain the involved entities from continuing the unlawful conduct and require them to take corrective measures.
Financial penalties of up to 10% of a company’s gross annual turnover may also be imposed.
