Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Kariuki noted that the move is only meant to extinguish competition among members of the professional associations to the detriment of clients.

Africa

Watchdog warns professional bodies against setting minimum service rates

NAIROBI, Kenya, October 5 – Market watchdog, Competition Association of Kenya has raised concerns of a renewed momentum by various professional associations seeking to illegally set minimum chargeable prices for their members.

The Authority’s Director-General,  Wang’ombe Kariuki warned that professional bodies found liable of fixing service prices for its members will be liable to a fine of Shs 10 million and imprisonment for a maximum of five years or both.

He, however, did not single out some of the associations violating the Competition Act.

“Notwithstanding the aforementioned provision of the Act, the authority would like to remind professional service associations that Section 29 of the Act provides that a professional association whose rules contain a restriction that has the effect of preventing, distorting, or lessening competition in a market shall apply in writing in the prescribed manner to the authority for an exemption,” a statement issued read in part.

Kariuki noted that the move is only meant to extinguish competition among members of the professional associations to the detriment of clients.

“The envisaged arrangements of setting minimum rates/fees, are only meant to extinguish competition among members of the professional associations to the detriment of clients/consumers,” he said.

The law prohibits associations of undertakings from making decisions or engaging in concerted practices which directly fix purchases or selling prices or any other trading conditions in relation to the provision of goods and services.

The regulator has previously fined several firms which colluded to set minimum prices including paint manufacturers.

 

Advertisement. Scroll to continue reading.

 

 

 

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...