Maize and wheat flour manufacturers and makers of edible oil, toilet paper, sanitisers and face masks were ordered to stop using single distributors to tame price increases and hoarding during the coronavirus pandemic.
The Competition Authority of Kenya (CAK) also ordered distributors who had their own retail outlets to give essential goods to other retailers without discriminatory terms.
CAK said prices of essential goods came down last year after they forced the manufacturers to remove exclusive supplier clauses in contracts which could have created artificial shortages during the pandemic.
Maize and wheat flour manufacturers and makers of edible oil, toilet paper, sanitisers and face masks were ordered to stop using single distributors to tame price increases and hoarding during the coronavirus pandemic.
The Competition Authority of Kenya (CAK) also ordered distributors who had their own retail outlets to give essential goods to other retailers without discriminatory terms.
CAK said prices of essential goods came down last year after they forced the manufacturers to remove exclusive supplier clauses in contracts which could have created artificial shortages during the pandemic.
An exclusive distribution agreement is one where the supplier only engages a single distributor to sell the products with an undertaking not to appoint other distributors or compete with the distributor by directly selling the goods to the customers.
“We ordered manufacturers and distributors of essential commodities to expunge exclusivity clauses in their contracts. It is notable that the prices of these commodities stabilised following our interventions,” CAK's Director General Wang'ombe Kariuki said in the annual report.
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