The Committee on Trade, Industry, and Cooperatives has directed the Competition Authority of Kenya to probe claims that multinational firms are discriminating against local investors in the transport and logistics sector.
The directive was issued today by Committee Vice Chairperson, Hon. Marianne Kitany (Aldai), during a meeting with the agency’s Acting Director General, Dr. Adan Roba.
"We are directing you to conduct further investigations into the allegations," stated Hon. Kitany.On March 6, the House Team met with officials from the Kenya Transporters Association (KTA) Limited. The association had sought the MPs’ intervention to resolve an ongoing dispute between local transporters and international firms.
At the meeting, KTA Chairman Newton Wang’oo claimed that multinational companies prefer to work with fellow international firms in the transport sector, which they believe constitutes unfair business practices.
"The comprehensive probe should not only be confined to the transport and logistics industry alone but to other sectors of the economy as well," Hon. Kitany emphasized to Dr. Roba.In an earlier morning session led by Committee Chairperson Hon. James Gakuya (Embakasi North), senior officials from two multinational companies operating in Kenya refuted claims of unfair trade practices with their suppliers.
"Is it true that you engage in exclusive contracts with your fellow multinationals in the transport and logistics sector?" asked Hon. Gakuya who observed that it's important for local firms to also benefit from contracts from the companies.Unilever Kenya Limited’s Managing Director, Luck Ochieng, and Nestlé Kenya Limited’s Chief Finance Officer, Gibson Singen, separately stated that their companies actively work harmoniously with local transporters.
“Localisation is at the core of Unilever’s Supply Chain worldwide. Over the last few years, we have been intentional about developing local SME logistics partners in addition to other sourcing categories,” explained Mr. Ochieng.
"Nestlé is a company that prioritizes compliance with the laws and regulations in the markets where we operate," added Mr. Singen.Meanwhile, representatives from British American Tobacco and East African Breweries Limited did not appear before the Committee, citing various reasons.
Hon. Kitany directed that they attend a rescheduled meeting on Tuesday, September 17, to respond to the concerns raised by sector players.
