Carrefour's UAE-Based Operator To Challenge Competition Authority Of Kenya's KSh 1.1b Fine

• CAK fined Majid Al Futtaim Hypermarkets Ltd, operating under Carrefour for the misuse of its bargaining position with suppliers
• Majid Al Futtaim Hypermarkets Ltd has released a statement declaring its intent to appeal the decision
• The company cited the withdrawal of complaints and renewed partnership agreements with suppliers as reasons for the appeal

Elijah Ntongai, a journalist at TUKO.co.ke, leverages more than three years of expertise in financial, business, and technology research, providing insights into both Kenyan and global economic trends.

Majid Al Futtaim, the exclusive operator of Carrefour in Kenya, has expressed its dismay over the recent decision by the Competition Authority in Kenya to impose a KSh 1.1 billion fine.

CAK penalised Majid Al Futtaim Hypermarkets Ltd, which trades under Carrefour, for abusing its superior bargaining power over Pwani Oil Products Limited and Woodlands Company Limited.

The company has released a statement declaring its intent to appeal the decision, citing the withdrawal of complaints and the renewal of partnership agreements with the key entities.

"Majid Al Futtaim has full confidence in the fairness and integrity of our business practices and is appealing the Competition Authority's decision

Majid Al Futtaim was surprised by the recent decision made by the Competition Authority in Kenya, which comes despite the withdrawal of complaint and renewed partnership agreements that have been signed with Woodlands Company Limited and Pwani Oils Limited," read the statement.

Relationship between Carrefour and suppliers

Majid Al Futtaim, represented by Carrefour in Kenya, operates with a robust network of over 700 supplier partners, with 300 of them being valued collaborators since the company's inception in Kenya in 2016.

Despite the recent setback, the company emphasised its pride in fostering collaborative relationships with suppliers, aiming to create a sustainable and equitable business environment through transparent communication and ongoing engagement.

"We take pride in working collaboratively with all our suppliers to create a more sustainable and equitable business environment through ongoing engagement and transparent communication," said the company in its statement.

Competition Authority Fines Carrefour KSh 1.1b

In other related news, TUKO.co.ke reported that CAK penalised Majid Al Futtaim Hypermarkets Ltd, which trades under Carrefour, for abusing its superior bargaining power over Pwani Oil Products Limited and Woodlands Limited.

The regulator ordered the supermarket chain to amend all supplier contracts and expunge clauses that facilitate abuse of power as well as refund Woodlands and Pwani Oil a total of KSh 16.75 million in rebates deducted from their invoices.

"The authority has also ordered Carrfour to refund Woodlands and Pwani Oil a total of KSh 16.75 million in rebates deducted from their invoices as well as KSh 500,000 that was billed as marketing support," CAK stated.