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Kenyan Regulator Fines Supermarket Chain for Illegally Transferring its Costs to Suppliers 

Kenya’s competition regulator has fined the local Carrefour franchise holder, Majid al Futtaim, $7.1m after accusing it of forcing suppliers to accept lower prices. The regulator said it had abused “its superior bargaining position” over two suppliers. The f ine is the highest-ever issued by the competition authority. In addition to the fine, the Competition Authority of Kenya (CAK), has ordered the Carrefour franchise holder to refund the two companies involved – honey processor Woodlands and manufacturer Pwani Oil – $112,000. CAK has said that Majid al Futtaim forced suppliers to accept lower prices through a system of discounts known as rebates, which cuts final payments by up to 12%. The company is yet to respond to the penalty, but after the 2021 investigation, it said that it “remains committed to working with its suppliers through mutually beneficial relationships”. There are 21 Carrefour outlets in Kenya across many of the country’s major cities.

SOURCE: BBC