Supermarket To Contest Ksh1.1 Billion Fine Imposed By Govt

The parent company of a popular supermarket chain has announced that it will appeal the Competition Authority of Kenya's (CAK) directive to pay a fine amounting to a total of Ksh1.1 billion.

In a statement, the holder of the supermarket chain expressed its surprise at CAK's decision to heftily fine the retailer despite the withdrawal of complaint and renewed partnership agreements that have been signed with Woodlands Company Limited and Pwani Oils Limited.

The company further expressed full confidence in the fairness and integrity of its business practices and is appealing the Competition Authority's decision.

Competition Authority of Kenya (CAK) Acting Director-General, Dr Adano Wario. /BUSINESS TODAY

It argued that it maintains a strong network of over 700 supplier partners, 300 of which have been valued partners since it began operations in Kenya in 2016.

"We take pride in working collaboratively with all our suppliers to create a more sustainable and equitable business environment through ongoing engagement and transparent communication," the statement read in part.

The parent company further asserted its commitment to upholding the highest standards of global best practice, including antitrust and competition laws to encourage fair competition in all aspects of its businesses.

This includes protecting the purchasing power of Kenyan citizens by offering trusted cost-mindful, locally-sourced, high-quality products; creating more than 7,000 direct and indirect jobs and career opportunities for Kenyan talent; and broadening trade prospects for supplier partners to export their products across its regional network of operations.

"We will continue working to the benefit our customers, partners and stakeholders to ensure meaningful contribution to Kenya's development agenda in creating a globally competitive and prosperous nation through sustainable business operations and our long-term social support and initiatives in education, health, social inclusion, and poverty eradication," added the statement.

CAK on Tuesday, December 19 accused the supermarket of separately abusing its bargaining position with the two companies.

The authority revealed that according to investigations, the supermarket chain's parent company was fined Ksh1.1 billion for separately abusing its superior bargaining position over the two suppliers.