Kenya’s competition regulator has fined nine steel companies a record amount for price fixing.
The fines comes to a total of 338m Kenyan shillings ($2.3m, £1.8m) – with Corrugated Steel getting the largest penalty of 86.9m Kenyan shillings.
The Competition Authority of Kenya (CAK) said in a statement
that their investigation began three years ago.
It says the firms conspired to inflate the prices of steel products and collectively agreed on price adjustment timelines.
The regulator also penalised eight of the companies for colluding to limit imports of some steel products in order to create artificial shortages and raise prices.
“This penalty is the highest-ever imposed by the authority and it should send a clear message that cartel conduct is illegal under the competition act,” said Adano Wario, the authority’s acting director-general.
Mr Wario added that the fines were proportionate to the harm that the companies caused consumers as their practices had notably increased construction costs.
The authority also revealed that it was negotiating settlements with five other steel companies that had also engaged in anti-competitive behaviour.