This archive report was first published on 15 September 2019.
The right to form business is a fundamental right in Kenya, enshrined in Article 36 of the Constitution. This allows citizens to form or join associations, including businesses, as long as all requirements are met.
However, competition is a harsh reality that all businesses must contend with. The modern legislative environment encourages fair competition in most sectors, benefiting the economy and consumer welfare.
Strategic planning experts advise businesses to find their niche and focus on that. This involves analyzing gaps left by competitors and filling them with key strengths. Businesses that find their competitive advantage and capitalize on it report more profits than those that do not.
Intellectual property rights (IPRs) can help businesses attain a competitive advantage over competitors. IPRs grant exclusive rights to owners over their creations and are reported as intangible assets. With the right business strategy, IPRs can be positioned to guard against replication by competitors.
It is essential to deal fairly with competition and consumers in your strategy. Unfair trade practices occur when businesses resort to fraudulent activities, exposing consumers to danger. Sale of substandard food and drinks is a crisis that Kenya has been dealing with.
Consumer rights groups should take up the issue through public interest litigation where applicable. The public and consumers have redress under consumer rights laws and specific laws such as the Food Act (Cap 254), Public Health Act, and others.
False representations, including false advertising, are unfair trade practices. It is crucial to consider competition laws in sales, marketing, and advertising to avoid anti-consumer practices.
