The Competition Authority of Kenya (CAK) has launched investigations into suspected cartels and deceptive practices in the bread, sugar and mattress manufacturing industries in efforts to curb anti-competitive practices.
The investigations follow the rising consumer complaints of shrinkflation, misleading labeling and unfair pricing in the market.
According CAK, the exercise in the bread sub-sector was detected in what is described as “cartel-like behavior” among market players. A similar investigation was also conducted in sugar industry among manufacturers and distributors of foam mattresses.
“The authority initiated a screening into bread, sugar and mattress sectors over cartel-like exhibited by market players,” the CAK said in a statement.
In the bread sub-sector, loaves are being sold at the same price but with reduced weight or size without the consumers’ knowledge, while others lack essential details like batch numbers, manufacturing dates and expiry dates, breaching Kenya Bureau of Standards (KEBS) rules.
On the other hand, manufacturers argue that resizing is due to rising costs of fuel, electricity, taxes, raw materials and packaging. The cartels involve agreements between competitors to fix prices, limit production, allocate markets or coordinate bids.
CAK has affirmed thorough investigations are ongoing in the markets industry.
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