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CAK slaps Carrefour with cease and desist order over Pwani Oil

Carrefour

Carrefour Supermarket in Mombasa. 

Photo credit: File | Nation Media Group

What you need to know:

  • This is not the first time Carrefour is finding itself in hot water over its relations with suppliers.
  • In 2021, the Competition Tribunal reinforced CAK’s order for Carrefour to revise all its agreements with some 700 suppliers after a tribunal found it has been exploiting traders. 
  • The retail giant was also barred from delisting suppliers unilaterally without notice for failure to meet its stringent supply contract.

The competition watchdog has ordered retail chain Carrefour to stop charging rebates on Pwani Oil products' invoices, nearly two years after the retailer was also fined over unfair supplier discounts. 

The Competition Authority of Kenya (CAK) has ordered Carrefour, through its franchise holder Majid al Futtaim’s (MAF), to stop compelling Pwani Oil to give extra discounts for its products until an investigation into allegations of abuse of buyer power by the retailer are concluded.