The Competition Authority of Kenya (CAK) will work with a regional watchdog investigating giant beverages firm Coca-Cola Company over alleged uncompetitive behaviour in over 19 countries in Africa.
CAK Director-General David Kemei said that though the agency hasn’t received any complaints of anti-competitive practices against Coca-Cola in Kenya, it will investigate any possible violations.
This comes as the Common Market for Eastern and Southern Africa (Comesa) Competition Commission (CCC)- which is the anti-trust agency in the 21-member regional bloc, launched an inquiry into alleged anti-competitive practices by the giant beverage maker in the region.
“We will collaborate with the CCC to see to it that we get evidence that there is abuse of competition aspects here in Kenya or not, so that we can be able to take the necessary steps that are required,” Mr Kemei told Business Daily.
The CCC, the competition regulator in the Comesa, on Tuesday launched an investigation into Coca-Cola, saying it has “reason to believe” that the beverage maker has closed “restrictive” with affiliates in the region.
The commission did not disclose which countries the said affiliates are located in, but said the agreements may affect trade between member states of the common market and in effect could prevent, restrict, or distort competition in the region.
CAK seeks to establish whether the alleged agreements were also signed with any affiliate that operates in the Kenyan market, in which case it would be anti-competitive and restrictive to local beverage manufacturers.
Kenya is one of the 21 member countries of the bloc and the CAK works with the CCC closely, especially in regulating competition and consumer protection issues whose impact extends beyond Kenya’s borders.
Coca-Cola has come under CAK’s scrutiny before, the latest being last year, when the regulator investigated suspected flouting of regulatory conditions in its acquisition of three bottling firms from Centum Investments.
As part of the conditions of acquiring the three companies, CAK required Coca-Cola to allow retailers to stock beverages from rival firms in fridges provided by the giant firm.
CAK accused Coca-Cola of breaching the requirement, triggering a warning, after which the company amended its cooler agreements with retailers, avoiding a fine of up to Sh10 million, or cancellation of its Sh10.7 billion acquisition of the three bottlers.
