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Supermarkets pricing report expected June

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Competition Authority of Kenya (CAK) director-general Wang’ombe Kariuki. FILE PHOTO | NMG

A study commissioned by the Competition Authority of Kenya (CAK) into supermarkets’ pricing strategies is expected to be unveiled by the end of next month.

“We are doing the data cleaning and analysis. We expect to have the report by June 30th,” said CAK director-general Wang’ombe Kariuki on Monday.

In January, CAK launched a probe on supermarkets over rising customer complaints of price manipulation, where customers are misled to overpay for goods.

The competition watchdog announced the retailers would face scrutiny following mounting claims they were posting different prices on the shelf from what they charge at the tills.

“(The study) will scrutinise the prevalence of dual price displays (price at the shelf vis-à-vis the till) in retail settings and evaluate the time lag between changes in prices at the till relative to the shelf prices,” said Mr Kariuki in a gazette notice announcing the survey.

A consumer lobby, which a year ago threatened to sue a major retailer for possible dodgy pricing, welcomed the study but added that its findings must immediately transform into regulatory steps.

“We welcome the study. The authority has finally responded to consumer complaints,” said Stephen Mutoro, Consumers Federation of Kenya (Cofek) secretary-general.

READ: Consumer lobby sues Nakumatt over pricing discrepancy complaints

He said anti-competitive practices were prevalent in the oligopolistic sector.

Some of the large retailers have in the past claimed the time lag between changes in shelf price and the till are responsible for the problem.

Apart from the price cheating, Mr Wang’ombe said supermarkets that sell defective stock would be in focus.

“The main objective of the study is to assess the state of competition in the market for branded retail by examining the multi-layered structure of the market and the conduct of market players,” said Mr Wang’ombe.