PS Chris Kiptoo Champions Fair Competition as CAK Chairman Charles Mahinda Unveils Tougher Crackdown on Cartels and Market Abuse

Principal Secretary at the National Treasury, Dr. Chris Kiptoo, has reaffirmed the Government’s commitment to strengthening competition and consumer protection as key pillars of economic growth, while Competition Authority of Kenya (CAK) Board Chairman Charles Mahinda pledged tougher enforcement against anti-competitive practices that undermine businesses and consumers.

The leaders spoke during the Research Conference on Competition and Consumer Welfare held at Weston Hotel in Nairobi under the theme, “Promoting Competition and Consumer Welfare in Globalized and Dynamic Markets.” The conference brought together policymakers, researchers, academics, regulators, and industry stakeholders to explore the role of competition in driving economic transformation and consumer welfare.

The PS  said competitive markets are essential for creating jobs, lowering consumer prices, attracting investment, and supporting inclusive economic growth.

“Competition enforcement is not merely a regulatory function. It is a powerful economic tool that supports food security, reduces poverty, and promotes inclusive growth,” said Dr. Kiptoo.

The Principal Secretary noted that agriculture, which contributes 22.5 percent of Kenya’s Gross Domestic Product, continues to face challenges arising from anti-competitive practices that increase production costs and reduce returns for farmers. He also emphasized the importance of Micro, Small and Medium Enterprises (MSMEs), which contribute 34 percent of GDP and employ approximately 15 million Kenyans.

According to Dr. Kiptoo, reforms aimed at removing barriers to competition could significantly boost economic growth and employment. He cited findings from the Bridging Barriers Study by the World Bank Group and CAK, which indicate that eliminating trade and investment restrictions could increase formal employment by 2.6 percent and raise Kenya’s real GDP by 4.9 percent by 2035.

“These findings demonstrate that competition reform is not an academic exercise. It presents a tangible opportunity to create jobs, attract investment, and accelerate economic growth,” he said.

The Treasury PS also raised concern over bid-rigging in public procurement, noting that public procurement accounts for approximately 60 percent of the national budget.

“Every shilling lost through bid rigging is a shilling taken away from schools, hospitals, roads and essential public services. Taxpayers deserve better value for money,” he stated.

 CAK Board Chairman Charles Mahinda described the conference as a timely platform for addressing emerging competition challenges in both traditional and digital markets.

“We are gathered here today at a pivotal moment, not only for the Competition Authority of Kenya but for the Kenyan and regional economies. Promoting competition and consumer welfare is not merely a policy objective but a call to action,” said Mahinda.

The Chairman revealed that the Authority has adopted a more aggressive enforcement strategy against cartels and repeat offenders, shifting from what he termed “soft enforcement” to “hard enforcement.”

“Over the last several years, the Authority has moved from soft enforcement to hard enforcement. This is now an explicit Board position going forward, particularly for repeat offenders,” he said.

Mahinda disclosed that the Authority has successfully dismantled four cartels in recent years that were harming consumers, limiting opportunities for SMEs, and suppressing economic growth.

To strengthen enforcement capabilities, he said CAK has invested in a modern forensic laboratory with support from the National Treasury to enhance data analysis and evidence gathering during investigations.

The Chairman also urged policymakers to fast-track amendments to the Competition Act currently before the National Assembly, saying the proposed reforms would empower the Authority to regulate increasingly complex digital markets.

On supporting SMEs, Mahinda highlighted CAK’s efforts to enforce Abuse of Buyer Power provisions, which have enabled the recovery of more than KSh 3.5 billion in delayed payments owed to small businesses.

He further noted that the Authority had revised merger thresholds, exempting transactions valued below KSh 500 million from approval requirements to reduce compliance costs and encourage entrepreneurship.

Mahinda praised partnerships and international cooperation as central to CAK’s success, citing the Authority’s leadership in developing the African Continental Free Trade Area (AfCFTA) Competition Policy and its growing influence in global competition and consumer protection networks.

He also emphasized the importance of research in shaping sound regulatory decisions, noting that competition enforcement must be guided by evidence, data, and rigorous analysis.

“The papers presented at this conference on market power, digital markets, algorithmic dominance and cross-border trade are not merely academic exercises. They are the foundation upon which effective policy and enforcement decisions are built,” he said.

Both leaders reaffirmed their commitment to strengthening Kenya’s competition framework to ensure consumers are protected, businesses thrive, and economic opportunities are shared more equitably across society.

The conference is expected to generate recommendations that will inform future policy reforms, enhance consumer welfare, and promote more competitive and inclusive markets across Kenya and the wider region.