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Elijah Ntongai is an experienced editor at TUKO.co.ke, with more than four years in financial, business, labour and technology research and reporting. His work provides valuable insights into Kenyan, African, and global trends.
The Competition Authority of Kenya (CAK) has put retailers on notice over commercial practices that could amount to abuse of buyer power, warning that businesses found in violation of the Competition Act face fines of up to KSh 10 million, imprisonment of up to five years, or both.
Director-General David K. Kemei issued the cautionary notice on November 11, 2026, after the Authority's market surveillance identified a pattern of concerning conduct in Kenya's retail sector.
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CAK flagged specific practices that retailers have been imposing on suppliers, including transfers of costs and risks, demands for promotional contributions and rebates, extended payment periods, and unfavourable terms buried in joint business plans.
The Authority noted that these arrangements, in many cases, appear to have been dictated rather than genuinely negotiated.
Under the Competition Act Cap 504, buyer power refers to the ability of a purchaser to extract more favourable terms from a supplier or impose disproportionate costs and risks on them.
The Act identifies several forms of conduct that may constitute abuse, including unilateral contract termination, refusal to receive goods without justification, and restrictions that prevent suppliers from selling to competing buyers.
CAK stated it is conducting ongoing market surveillance and will launch full investigations where there is sufficient evidence of a breach.
Where violations are confirmed, the Authority can pursue a criminal penalty of up to KSh 10 million, a prison term not exceeding five years, or both.
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It may also impose an administrative financial penalty of up to 10% of the offending business's gross annual turnover for the preceding year.
Kemei stressed that the existence of a signed supply agreement does not automatically mean the terms were fairly negotiated or that the conduct is lawful.
The Authority also clarified that it has never issued a directive requiring suppliers to enter into joint business plans with buyers, and that such arrangements must remain voluntary.
Suppliers were urged to preserve records, including draft and final agreements, correspondence, and payment documentation.
Those who believe they are being subjected to unfair terms can file a complaint with CAK at complain@cak.go.ke or through the Authority's e-filing portal.
Retailers were directed to review their commercial practices and ensure all supply agreements are rooted in genuine, good-faith negotiation and full legal compliance.
In other news, the Kenya Revenue Authority (KRA) has directed multinational companies covered by the Minimum Top-Up Tax framework to declare their compliance status by November 30, 2026, warning that failure to meet the requirements could result in non-compliance.
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Introduced through the Tax Laws (Amendment) Act, 2024, the tax was operationalised by regulations gazetted on September 18, 2026, under Legal Notice No. 189.
Affected companies must notify the Commissioner for Large and Medium Taxpayers through mttsupport@kra.go.ke, providing their group name, the country of their ultimate parent entity and details, including PINs, of all constituent entities operating in Kenya.
They must also file returns declaring any tax liability, settle amounts due within the stipulated timelines and comply with the international GloBE Information Exchange Agreement.
Source: TUKO.co.ke