The Competition Authority of Kenya (CAK) is currently seeking legal backing to initiate investigations into consumer-related issues in various markets, aiming to enhance the welfare of consumers of goods and services in the country.
This initiative is outlined in the draft Competition Amendment Bill 2024, which aims to expand the authority’s jurisdiction to address consumer concerns more effectively.
Presently, consumers are required to directly lodge complaints with the Authority to prompt an investigation, a process criticized for not adequately serving the public interest and limiting the authority’s mandate execution.
In response to the rising cases of fraudulent entities posing as consumer bodies and exploiting Kenyans under the pretext of enforcing consumer protection laws, the authority plans to review the activities of consumer bodies.
CAK emphasized the crucial role of consumer bodies in improving the welfare of Kenyan consumers, including raising awareness about their rights and providing access to redress mechanisms.
Additionally, consumer bodies serve as vital intermediaries between consumers and the Authority when filing complaints, facilitating smoother communication and resolution processes.
“Through the proposed accreditation process, the Authority will review the work of consumer bodies and publish a list of entities whose work and processes it acknowledges as being legitimate, enabling the public better appreciate the entities to work with,” the statement added.
In addition to addressing consumer-related issues, the proposed amendment aims to enhance transparency and public participation in the review of mergers that may impact competition and consumer welfare.
The Authority intends to introduce a requirement for the publication of merger notifications, inviting the public to provide input during the notification process.
This initiative will allow stakeholders and members of the public to contribute their perspectives and concerns regarding mergers, ensuring a more inclusive and thorough review process that considers the broader interests of consumers and competition in the market.
“This amendment will enhance the quality of our merger review process by considering more external information from stakeholders early in the merger review process. At the moment, the public only becomes aware of merger transactions after the Authority publishes its determination,” it added in the statement.
