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Kenya: Competition authority launches animal feeds sector inquiry

4 October 2023
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Overview

  • On 29 September 2023, the Competition Authority of Kenya initiated a market inquiry into the animal feeds sector in Kenya. This market inquiry, being the second launched by the CAK this year, will seek to identify any market inefficiencies or anti-competitive practices in the animal feeds market, with a view to effecting policy or legislative changes or taking enforcement action.

On 29 September 2023, the Competition Authority of Kenya (CAK) announced its intention to undertake a comprehensive market inquiry into the animal feeds sector (Market Inquiry) as per the gazette notice here.

In conducting the Market Inquiry, the CAK will focus on various factors including, but not limited to:

  • pricing, costs, and quantities produced and supplied along the animal feed value chain;
  • barriers to market entry by smaller market players;
  • licensing and other terms of supply for animal feeds and breeding stock; and
  • information sharing practices in the industry (between companies, associations or other groupings relating to animal feeds).

While doing so, the CAK will also consider the international trade flows of constituents of animal feeds (including the impact of trade arrangements under COMESA and the East Africa Community).

Following the conclusion of a market inquiry, the CAK is empowered to recommend legislative and/or policy interventions to rectify any market inefficiencies it identifies. In addition, should the CAK find any evidence or suspicion of any breaches of the Competition Act in the course of the Market Inquiry (such as restrictive trade practices, abuse of buyer power or other anti-competitive conduct), it may proceed to initiate an investigation (which could be preceded by dawn raids) with a view to taking further enforcement action.

The CAK has invited the public to provide input regarding the Market Inquiry by 20 October 2023, and it will also be contacting various key industry stakeholders in due course to collect information necessary to conduct the Market Inquiry.