"CAK warns firms as prices of sanitary products shoot up"

Manufacturers and retailers capitalising on the coronavirus pandemic to hike prices risk hefty fines of up to 10 per cent of their annual turnover, the competition watchdog has warned. The warning came amid a reported price increase of almost 700 per cent for key items used for protection against the spread of the virus. A spot check by The Standard showed that surgical masks are retailing at Sh3,000 a pack in pharmacies, with a number of outlets running out of stock. A box of surgical masks previously cost around Sh350...

The Competition Authority of Kenya (CAK) said it was aware of “collusive” plans by retailers and manufacturers to raise prices or hoard various consumer goods to shore up their prices. “It has come to the attention of the authority that following a pronouncement by the government of a confirmed coronavirus (Covid-19) case, some manufacturers and retailers are contemplating collusive increases of prices and, or hoarding with the intention of subsequently increasing prices of various consumer goods,” said CAK Director General Wang’ombe Kariuki. He said the action by the firms contravened the Competition Authority Act, which attracts a penalty of up to 10 per cent of the respective annual turnover of the manufacturers and retailers in question.