Cartels: The invisible tax on consumers
By David Kemei NAIROBI, Kenya, Nov 14 - The word cartel evokes negative connotations, and rightly so. Cartels, irrespective of the sector in which they Kenya breaking news | Kenya news today |..
✨ Key Highlights
Cartels are an "invisible tax" on consumers, leading to increased prices and stifled economic growth, according to David Kemei, Director-General at the Competition Authority of Kenya (CAK). The CAK is intensifying efforts to combat cartel behavior across various sectors.
- Cartels can inflate prices by 20% – 25%, as indicated by studies from the World Bank and OECD.
- The CAK has penalized steel manufacturers over KES 338 Million in August 2023 and paint manufacturers KES 66 Million in 2021 for cartel conduct.
- The CAK has invested KES 45 Million in a forensics laboratory to enhance evidence gathering and offers leniency for voluntary disclosure of cartel activities.
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Kenyan Authorities Announce Crypto Regulations, Supreme Court Ruling on Loans, and Measures Against Cartels - November 2025
Kenyan authorities have taken several actions related to economic regulation. Kenya and Ghana introduced new regulatory frameworks for virtual asset service providers (VASP) to combat fraud and improve transaction traceability. In a landmark judgment, the Supreme Court of Kenya has ruled that banks are not required to register new securities for additional credit, a decision which overturns a 2022 Court of Appeal ruling. The ruling is expected to reduce compliance costs for lenders. Additionally, the Director-General at the Competition Authority of Kenya (CAK), David Kemei, described cartels as an "invisible tax" on consumers. In response, the CAK is intensifying its efforts to combat cartel behavior across various sectors.
