The Competition Authority of Kenya (CAK) will investigate Coca-Cola business practices. This inquiry follows a regional probe into the company’s operations across Africa, involving more than 19 countries.
CAK Director-General David Kemei confirmed that no complaints have been filed against Coca-Cola in Kenya. However, the agency will examine the company’s local operations for potential violations.
This investigation forms part of a broader inquiry led by the Common Market for Eastern and Southern Africa (Comesa) Competition Commission (CCC). The Comesa Competition Commission suspects Coca-Cola of entering restrictive agreements with its affiliates that could disrupt trade and competition within the 21-member bloc. Competion Authority of Kenya will work with the CCC to gather evidence on Coca-Cola’s practices in Kenya.
Although the CCC did not disclose the specific countries involved, it indicated that these agreements might hinder competition in the region. CAK aims to find out whether Coca-Cola’s agreements also affect local beverage manufacturers in Kenya.
Kenya collaborates closely with the CCC on competition and consumer protection issues. Coca-Cola has previously faced scrutiny from CAK. Last year, CAK investigated Coca-Cola’s acquisition of three bottling firms from Centum Investments.
As part of the acquisition conditions, the company had to allow retailers to stock products from rival companies in its coolers. CAK found that Coca-Cola violated this condition and issued a warning. In response, the company modified its cooler agreements to avoid penalties. This measure aims to ensure the company’s adherence to legal practices is upheld.
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