Why regulator stopped Tuskys bid to acquire rival Ukwala

Retail chain Tuskys Supermarkets’ takeover of rival Ukwala Supermarkets has been stopped and the two companies fined Sh5.3 million for engaging in restrictive trade practices.
The Competition Authority of Kenya (CAK) found that Tuskys, which is Kenya’s second-largest retail chain, broke the law when it struck a deal to manage Ukwala’s stores in April last year thereby interfering with workings of a free market.

“Preliminary investigation established that the arrangement amounted to a horizontal restrictive practice to the extent that it allowed Tuskys to set the prices and other trading terms of a competitor in addition to managing the three Ukwala stores, in terms of marketing and management systems,” the authority said.