CAK raids mattress firms over suspected price-fixing

NAIROBI, Kenya, Mar 31 – The Competition Authority of Kenya (CAK) conducted dawn raids on six foam mattress manufacturers and distributors across Nairobi, Machakos, Kiambu and Kisumu over suspected anti-competitive behaviours.

The unannounced searches saw investigators seize electronic and physical records, including laptops, mobile phones, storage devices, management reports and sales data, as the regulator seeks to establish whether firms engaged in practices such as price fixing, market allocation or collusive tendering.

The Authority said the operation was backed by intelligence from its market surveillance teams pointing to possible cartel-like behaviour among competitors in the essential household goods segment.

“Foam mattresses are an essential household commodity, used by millions of Kenyan consumers. Our intervention seeks to establish whether collusive practices are undermining the affordability and accessibility of these products for ordinary households,” said Director-General David Kemei.

“Based on our experience handling complex cases, this investigation is reasonably expected to take several months to complete. However, our proactive measures such as upskilling our case officers, installation of an in-house modern forensic laboratory, and thorough planning ahead of the searches will improve the case completion time.”

CAK noted that the raids, conducted under provisions of the Competition Act, do not imply guilt but are a critical step in securing evidence that could otherwise be concealed or destroyed.

The regulator said it would subject the retrieved data to forensic analysis before determining the next course of action, adding that affected firms will be given an opportunity to respond through oral and written submissions.

If found culpable, companies could face penalties of up to 10 percent of their gross annual turnover, alongside orders to cease and remedy any unlawful conduct.

The investigation comes amid growing regulatory scrutiny of pricing practices in consumer goods markets, as authorities seek to cushion households from the impact of high living costs.