Retailers risk Sh10 million fine, five-year jail term over unfair supplier terms – CAK warns

Listen to articleAccording to the Authority, the Competition Act identifies several practices that may amount to abuse of buyer power, including delayed payments, unilateral termination or threats to terminate supply agreements, and refusal to receive goods without valid reasons and contrary to contractual terms.Retail businesses imposing unfavourable commercial terms on suppliers now risk fines of up to Sh10 million, imprisonment of up to five years, or both, as the Competition Authority of Kenya (CAK) moves to crack down on practices that exploit suppliers through unequal bargaining power.