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Post Reply: Competition Authority Imposes Record Sh116.71 Million in Fines Amid Intensified Crackdown on Unfair Trade Practices

<blockquote><div class="quotetitle">Quote from <a class="profile-link highlight-moderator" href="https://lawguide.co.ke/understanding-law/legal-forum/profile/lawyer/">Lawyer</a> on April 13, 2026, 1:55 pm</div><div id="pl-8963" class="panel-layout">
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<p dir="auto">The Competition Authority of Kenya has recorded a sharp rise in penalties imposed on companies found violating competition laws. Cumulative fines reached Sh116.71 million in the financial year ended June 30, 2025. This figure marks a 3.5-fold increase from Sh33.06 million collected in the previous period. It also represents the third consecutive year of growth in penalties, climbing from Sh12.72 million recorded in the 2021/2022 financial year.</p>
<p dir="auto">The latest amount significantly exceeded the authority's internal projection of Sh52.86 million. As a result, fines and penalties emerged as the single largest revenue stream for the regulator during the review period. In comparison, merger and acquisition approvals generated Sh109.85 million, while grants and exchequer receipts accounted for Sh374.13 million in overall funding.</p>
<p dir="auto">Officials attributed the surge to intensified enforcement against unfair trade practices. These include infringements on consumer rights and welfare, as well as cases where companies completed mergers and acquisitions without obtaining prior regulatory approval. Many parties involved in disputes at the Competition Tribunal received rulings in favour of the authority. Others chose to settle cases out of court, contributing to the higher collections.</p>
<p dir="auto">Penalties have targeted various sectors. In one notable case from August 2023, steel manufacturers faced a collective fine of Sh338.85 million for cartel conduct that led to inflated construction costs. Fourteen firms were identified as culpable in that matter, with five opting for settlement and nine receiving direct fines. Seven of the firms challenged the decision at the tribunal and subsequently appealed to the High Court, where the outcome could further influence total penalties collected.</p>
<p dir="auto">The authority has also conducted search operations on mattress manufacturers suspected of anti-competitive behaviour designed to distort market competition. In the energy sector, oil marketing companies received warnings against hoarding fuel to create artificial shortages. Such actions could attract penalties of up to Sh10 million for involved parties, along with potential criminal liability.</p>
<p dir="auto">Fees, fines and penalties are levied against companies found to infringe competition law by engaging in unfair trade practices. These measures aim to protect consumer rights and maintain fair market conditions across the economy.</p>
<p dir="auto">The rise in enforcement reflects a broader commitment to addressing anti-competitive conduct. With ongoing tribunal and court matters, including the steel manufacturers' appeals, the total fines could increase further in the coming periods. The Competition Authority continues to monitor markets closely and take decisive action where violations occur.</p>

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