Money Markets
Experts trash proposed competition legislation
Nairobi lawyer, Mr Richard Omwela, said the provisions of the Bill are the same as those of the existing law. Photo/FILE
Posted Monday, November 16 2009 at 00:00
At the time of the approval of the merger, Brookside was processing 57 million litres of milk while Spinknit processed 21 million litres of milk in the first six months of 2008.
The merger created a bigger milk processor in the country with over 78 million litres of milk processed within the last six months, beating KCC and other dairy companies which processed 63 million litres within the same period.
Colonial legislation
The Bill will repeal the Restrictive Trade Practices, Monopolies and Price Control Act—a colonial legislation that has escaped amendment.
It recommends that any companies or persons who implement mergers which have not been approved by the proposed Competition Authority commits an offence that warrants a five year jail term or a fine not exceeding Sh1 million or both.
In addition, the Authority may also impose a financial penalty not exceeding 10 per cent of the gross turnover in Kenya of the undertakings in question.
“The Monopolies and Prices Commission has never taken anyone to court. We wonder how strong this new Authority will be, given that it is not given any additional powers,” said Mr Omwela.
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