Majid Al Futtaim, which operates Carrefour in Kenya, says it was surprised by the recent decision made by the Competition Authority in Kenya (CAK) to fine the retailer Sh1.1 billion.
CAK on Tuesday accused the retail chain of abuse of buyer power against suppliers Pwani Oil Products and Woodlands Company Limited.
“The Authority has investigated penalized Majid Al Futtaim Hypermarkets Ltd which trades in Kenya under the brand name Carrefour a total of Sh1,108,327,873.60 for separately abusing its superior bargaining position over two of its suppliers -Pwani Oil Products Ltd and Woodlands Company Limited,” CAK acting Director General Adano Wario stated.
Carrefour, however, says it was surprised by CAK’s move, given the two suppliers had already withdrawn their complaints and renewed their partnership agreements with the supermarket.
Competition Authority fines Carrefour supermarket Sh. 1.1 billion
“Majid Al Futtaim was surprised by the recent decision made by the Competition Authority in Kenya, which comes despite the withdrawal of complaint and renewed partnership agreements that have beensigned 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,” it stated.
The firm said it’s 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.
“This includes protecting the purchasing power of Kenyan citizens by offering trusted cost-mindful, 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.”
Carrefour in Kenya maintains a strong network of over 700 supplier partners, 300 of which have been valued partners since the firm began operations in Kenya in 2016.
