This archive report was first published on 22 August 2021.
On 20 August 2021, the Competition Authority of Kenya (CAK) issued a gazette notice, finding the Energy Dealers Association (EDA) guilty of plotting to exploit Kenyans through price fixing.
EDA, a conglomerate of 32 small-scale suppliers and distributors, was accused of colluding to fix the minimum prices of 6kg and 13kg liquefied petroleum gas (LPG) cylinders.
As a result, the association was fined Ksh408,000, equivalent to 5 percent of its relevant annual turnover, and was ordered not to engage in anti-competitive conduct.
CAK explained that although there was no evidence that the suppliers proceeded to implement the proposals, the intent was contrary to Section 21 of the Competition Act, which outlaws restrictive trade practices.
EDA was found to have advocated for the enactment of the Energy Dealers Act 2019 with the objective of recommending pricing formulae to its members.
Following the fine, EDA committed to implementing a competition compliance programme to sensitize its members and their staff about the provisions of the act.
