Carrefour surprised by competition authority’s Sh1.1 billion penalty    

NAIROBI, Kenya, Dec 20 – Majid Al Futtaim, the owner of Carrefour in Kenya, says that it was surprised by a Sh1.1 billion penalty from the Competition Authority of Kenya (CAK).

This, it says, was despite the withdrawal of the complaint and the renewed partnership that had been signed with Woodlands Company Limited and Pwani Oils Limited.

“Majid Al Futtaim has full confidence in the fairness and integrity of our business practices and is appealing the Competition Authority’s decision,” Majid Al Futtaim said in a statement.

Yesterday, CAK said that the supermarket chain separately abused its superior bargaining position with Pwani Oil Products Limited and Woodlands Company Limited.

Whereas Woodlands processes and supplies retail stores across the country with refined natural bee honey from Kitui County, Pwani Oil makes and distributes Fast-Moving Consumer Goods, including edible oil and fats, skin care products, and washing soap products.

The authority also directed the supermarket to amend all its supplier contracts and expunge clauses that facilitate abuse of buyer power, including but not limited to application of listing fees, collection of rebates, and unilateral delisting of suppliers.

Carrefour Kenya has a network of over 700 supplier partners, of which 300.

“As a leading regional retailer, Majid Al Futtaim is committed to upholding the highest standards of global best practice, including antitrust and competition laws to encourage fair competition in all aspects of its businesses,” Majid Al Futtaim stated.

“This includes protecting the purchasing power of Kenyan citizens by offering trusted costmindful, locally-sourced, high-quality products; creating more than 7,000 direct and indirect jobs and career opportunities for Kenyan talent; and broadening trade prospects for supplier partners to export their products across Majid Al Futtaim’s regional network of operations,” it added.

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“We will continue working to the benefit our customers, partners and stakeholders to ensure meaningful contribution to Kenya’s development agenda in creating a globally competitive and prosperous nation through sustainable business operations and our long-term social support and initiatives in education, health, social inclusion, and poverty eradication.”

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