The Competition Authority of Kenya has faulted supermarket chain, Carrefour, over unfair supplier deals that have continually led to unfair competition.
The authority lists Carrefour’s faults as:
- Forcing suppliers to pay a non-refundable fee to do business with the retailer
- Forcing merchants offering the retail chain goods to provide extra rebates or discounts
- Forcing suppliers to post their own staff at its outlets
- Rejecting goods already delivered
According to the East African, suppliers have accused the supermarket of using its stringent supply contract to depress their earnings and gain market advantage through competitive pricing.
In line with this, the supermarket chain now faces a financial penalty amounting to 10% of its gross sales in the event that it does not review its policies within sixty days. Already, it has been fined KSh124,767 for exploiting Orchards Limited, which supplies yoghurt.
Carrefour opened its first outlet in Kenya in 2016, and currently operates over 250 hypermarkets, supermarkets, and online stores in 15 countries across the region, with plans to extend into 38 countries in the Middle East, Central Asia, Africa and Russia.