The Competition Authority of Kenya (CAK), in collaboration with the East African Community Competition Authority (EACCA), has recently indicated its intention to conduct a market inquiry into the fertilizer sector in Kenya (the Market Inquiry). Based on the gazette notice published by the CAK on 24 January 2025, the intention is to conduct an assessment in Kenya as well as across all the other EAC member states (being Tanzania, Uganda, Rwanda, Burundi, and the Democratic Republic of Congo) although no official announcement in respect of these jurisdictions has been published yet.
The CAK indicates that the Market Inquiry has been necessitated by fertilizer prices not decreasing in line with international market trends, coupled with the prioritisation of food security in the region by EAC member states. This will be on the back of the CAK’s recently concluded market inquiry into the animal feeds market in Kenya, whose final report is expected to be finalised imminently.
The Market Inquiry will specifically focus on examining:
- fertilizer trading patterns, including imports, ports of entry, and distribution networks;
- the structure and concentration levels of the market, focusing on companies involved in the importation, blending, manufacturing, and distribution of fertilizers;
- the cost components and price trends within the industry value chain over the past five years;
- barriers to entry and exit and other trade barriers within the sector; and
- any potential anti-competitive practices, with recommendations for pro-competitive reforms.
At the moment, it is unclear whether the above scope shall be replicated across each of the other EAC member states, particularly in jurisdictions where the relevant competition regulator is not yet operational or is unestablished. It does, however, represent the first market inquiry involving the EACCA as it works towards launching full operations, supported by its recent entry into a memorandum of understanding with the CAK on collaborative regulatory efforts.
As part of the Market Inquiry, the CAK and the EACCA will send requests for information to stakeholders across the fertilizer sector in Kenya, while also conducting interviews with such stakeholders. The CAK has also invited written submissions to be sent to it by the public by 14 February 2025.
