Agency orders probe into edible oils cartel

The sugar distributors have been accused of fixing prices and hoarding the commodity to create an artificial shortage.

The anti-competitive watchdog notes that the remedy for the market imbalance in the sugar sector lies in placing the firms under private hands.

Sugar manufacturers have preferred to keep tabs of market leader Mumias sugar to offer direction on pricing.

“The government should speed up the privatisation of local sugar companies in order make them competitive,” says Mr Kariuki.

The twin sectors are the first in recent years to cross hairs on the anti-competition watch dog but it has placed the alcohol sector on its radar.

This follows complaints that East Africa Breweries Limited (EABL) has been using its dominance in the market place to squeeze rivals out of the market.

New entrant Keroche has been complaining that EABL was hindering the promotion of its beer products by threatening and bribing bar operators not to deal in Keroche’s products.

Though Keroche said in earlier interview with the Business Daily that they had abandoned the case, the commission notes matter is under investigation.

“A supplementary study should be carried out in the production, patenting and marketing of barley in order to understand and address the problem of market foreclosure,” says the commission.

More recently, regulators around the world have been getting tougher on pursuing unfair business practices and levying punitive fines in an effort to clamp down on the vice.

The amount of maximum antitrust firms has increased from Sh33.6 billion to Sh127 billion, dished to Intel in May for issuing discounts to computer manufacturers to pressure them to buy chips from it rather than its rivals.

In Kenya, the prices Commission is also zeroing in on trade malpractices by being proactive through launching investigations instead of relying on complaints.