- July 20, 2022
Written and presented by Valentine Mwende Wanyoike - Advocate
Breakdown
- Introduction
- Competition Act of 2010
- Competition Authority of Kenya
- Restrictive Trade Practices
- Control of Mergers
- Control of Unwarranted Concentration of Economic power
- Consumer Welfare
- The Competition Tribunal and the Competition Tribunal Practice Rules
WHAT IS COMPETITION?
Under the Competition Act Competition means competition in a market in Kenya and refers to the process whereby two or more persons
- supply or attempt to supply to; or
- acquire or attempt to acquire from,
the people in that market the same or substitutable goods or services
WHAT IS COMPETITION LAW?
-
Summary of efforts aimed at promoting competition in the sale of goods and services.
-
Targets restraints to trade and restrictive trade practices
-
Aims for
- Free flow of goods and services
- price of goods and services is determined by the forces of Demand and supply.
-
Synonyms and related terms
- Restraints of trade law
- restrictive trade practices law
- monopolies law
- combination acts
- Anti-trust laws (Sharman and Clayton Acts in the US)
IMPORTANCE OF COMEPTITION
Consumers
- Fair pricing
- Enhances quality
- Encourages enterprise
- More choices for consumers
- Better customer service and satisfaction
Economy
- Encourages enterprise
- Improves efficient use of resources
- Creates jobs
- Increases awareness and consumption
- Decreases interference by governments which increases investments and safeguards personal freedoms
COMPETITION ACT OF KENYA 2010 (REVISED 2014, 2016, 2019)
Predecessor: The Restrictive Trade Practices, Monopolies and Price Control Act of 1988 (CAP 504)
It was deemed outdated and inadequate
Government interference Lack of autonomy – operationalized under the Minister of Finance through a commissioner as a department within the Ministry.
No harmony with other Sectoral laws.
Government still undertook a lot of price fixing
A narrow enumeration of restrictive trade practices and difficulties in implementation process
Lack of power to conduct dawn-raids
Inadequate provisions on Mergers:
- there were no prescribed theresholds
- no time limit for approval
- The Minister was not required to give reasons for rejecting a merger
- The Act covered horizontal mergers only
OBJECTIVE OF THE COMPETITION ACT KENYA
PREAMBLE
to promote and safeguard competition in the national economy;
to protect consumers from unfair and misleading market conduct;
to provide for the establishment, powers and functions of
- the Competition Authority and
- the Competition Tribunal
increase efficiency in the production, distribution and supply of goods and services;
promote innovation;
maximize the efficient allocation of resources;
protect consumers;
create an environment conducive for investment, both foreign and local;
capture national obligations in competition matters with respect to regional integration initiatives;
bring national competition law, policy and practice in line with best international practices; and
promote the competitiveness of national undertakings in world markets
THE COMPETITION AUTHORITY OF KENYA
CHARACTERISTICS OF THE AUTHORITY
- established under section 7 of the Act
- Independent and shall perform its functions and
- exercise its powers independently and impartially without fear or favour.
-
The conduct and regulation of the business and affairs of the Authority shall
- be as provided in the Schedule.
- Except as provided in the Schedule, the Authority may regulate its own procedure.
FUNCTIONS AND POWERS OF THE AUTHORITY
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