Tuskys and Ukwala fined Sh5mn for anticompetitive practices

Tusker Mattresses and Ukwala
supermarkets have been fined
Sh5.3 million for engaging in anti
competitive practices by the
Competition Authority of Kenya.
In a press statement the Authority
stated that after investigation the
two supermarkets who are
competitors were found to have an
arrangement that involves price
fixing and behaviours that either
controls production, limits market
outlets or access which are in
contravention to section 21 of the
Competition act.
"The Competition Authority of
Kenya has imposed a financial
penalty of Sh5.3mn to Tusker
Mattresses Limited (TML) and
Ukwala Supermarkets Limited
(USL) for engaging in a horizontal
restrictive trade practice," said the
authority in a statement to
newsrooms.
The supermarkets entered into an
agreement in March 26 2013 to
have three branches of Ukwala
Supermarkets managed by Tusker
Mattresses for nine months.
The arrangement is said to have
cost Tusker Mattresses up to Sh200
million in the arrangement. ‘The
Arrangement would involve Tusker
Mattresses making decisions on
acquisition of stock, setting prices,
payroll management, staff re-
organization, deployment of
technology, rebranding, settling any
third party costs of the three
stores and generally put Tusker
Mattresses’ senior Managers in
charge of the day to day
management of the stores.’
The two chain stores complied with
the verdict and paid the amount in
full last week.