Kenya Competition Act (Cap. 504)
Part III Sections A to C: restrictive trade practices, abuse of dominance and abuse of buyer power – Kenya Competition Act (Cap. 504)

Kenya Competition Act (Cap. 504) 24A: No abuse of buyer power over suppliers

What does 24A require?

Abusing buyer power, in a Kenyan market or a substantial part of one, is prohibited (section 24A(1)). It includes delaying payment to suppliers without justifiable reason in breach of agreed terms; unilaterally terminating or threatening to terminate a commercial relationship without notice, on unreasonably short notice or without an objectively justifiable reason; refusing to receive or returning goods without justifiable reason in breach of contract; making suppliers fund promotions or bear costs and risks that belong to the buyer; demanding preferential terms unfavourable to suppliers or limits on supply to other buyers; small but significant price reductions where suppliers cannot readily switch buyers, or prices below competitive levels; and bidding up input prices to exclude competitors (section 24A(5)). The Authority weighs contract terms, infrastructure access charges and prices paid, may impose reporting and prudential requirements on sectors at risk, and may require a binding code of practice (section 24A(2) to (4)); the Retail Trade Code of Practice is the first.

Maintained by Gerard Blokdyk

Other controls in Part III Sections A to C: restrictive trade practices, abuse of dominance and abuse of buyer power – Kenya Competition Act (Cap. 504)

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