The Competition Authority of Kenya (CAK) has launched investigations into six Mattress Firms over suspected unfair business practices that could be affecting prices.
This comes after the authority raided the companies in Nairobi, Machakos, Kiambu, and Kisumu, targeting businesses suspected of colluding and engaging in unfair competition.
According to the Director-General of the competition authority, David Kemei, the main aim of the investigations is to establish whether the companies are engaging in the malpractices and whether they are unfairly competing with one another and the rest of the industry.
“Foam mattresses are basic commodities found in most homes. We want to investigate whether the companies have been engaging in unfair business practices that make them expensive and inaccessible to ordinary Kenyans,” Kemei said.
According to the authority, the companies could have been engaging in unfair business practices, which have the potential to drive up the cost of mattresses, denying consumers the opportunity to take advantage of the free market.
During the raid, the authority collected vital evidence, including computers, mobile phones, hard drives, sales records, and internal reports, which will be analyzed to ascertain whether the companies have been engaging in unfair business practices.
CAK explained that these surprise visits are crucial in the collection of evidence, which may be concealed or destroyed in the event that the companies are alerted in advance.
However, during the course of the investigations, the Authority ensured that the rights of the different companies under probe were respected, including allowing them legal representation and ensuring minimal disturbances during the course of the investigations.
The reason for the investigations stems from intelligence received from market surveillance, leading to a belief that there might be malpractices in the different companies in the mattress industry.
However, the Authority was quick to point out that the reason for the raids does not necessarily imply guilt on the part of the different companies, but rather part of the bigger picture in establishing the truth.
In the event the companies are found винов of violating the law, they are liable to face severe consequences, including being ordered to stop the malpractices, reversing the effects, or being fined up to 10 percent of the company’s annual turnover.
CAK further explained that the investigation may take several months due to the complexity involved, but has since improved the process, handling it in a shorter period through better training and new technology.
For now, the outcome of the investigation is uncertain, but the results could have a big impact on the pricing and availability of mattresses across the country.
