NAIROBI, Kenya, May 24 – Carrefour’s parent company, Majid Al Futtaim, has agreed to uphold supplier agreements to adhere to a court decision that upheld the Competition Authority of Kenya’s (CAK’s) abuse of buyer power accusation against suppliers.
High Court Judge Anne Ong’injo yesterday issued a judgment, directing the retailer to refund Orchards Limited Sh289.482 in deducted rebates.
It was also ordered to pay Sh124,768 to the CAK as a penalty for engaging in such unfair practices.
“Following the High Court of Kenya’s ruling yesterday that upheld Majid Al Futtaim right to fair administration and overturned the earlier decision ordering Majid Al Futtaim to amend its supplier agreements, we thank the High Court and consider that this essentially upholds the validity of Majid Al Futtaim’s existing suppliers’ agreements,” Carrefour said in a statement.
“We remain committed to conducting our business with fairness and integrity, working collaboratively with our partners to ensure a sustainable, equitable, and mutually beneficial business environment and in accordance with Kenya’s Code of Retail, in which we were honoured to play a founding role.’
The case revolved around a contract between Carrefour and Orchards Limited, which supplied probiotic yogurt under the brand name Cool Fresh to Carrefour outlets from January 2015 to December 2018.
Orchards Limited, which has since ceased operations, accused Carrefour of several unfair practices that led to its financial difficulties and eventual shutdown.
The Court upheld the Competition Authority’s determination that Carrefour possessed and abused its buyer power over Orchards Limited.
“Since beginning our retail operations in Kenya in 2016, we have taken great pride in upholding the highest standards of global best practice and adopting standardised commercial terms with our local partners,” the supermarket chain said.
“In doing so, we work together for the mutual success of our Carrefour brand and our suppliers, partners and stakeholders, while offering unparalleled value and affordable pricing to our customers in Kenya.”
