Carrefour’s franchisee in Kenya, Majid al Futtaim (MAF) will appeal against a Ksh 1.1 billion penalty imposed by the competition authority for abusing its buying power with Pwani Oil and Woodlands Co. Ltd.
According to Majid al Futtaim, the regulator did not consider that the suppliers had dropped their complaints and renewed their contracts with them.
As a result, MAF will challenge the authority’s decision at the Competition Tribunal and the High Court if needed.
“Majid Al Futtaim has full confidence in the fairness and integrity of our business practices and is appealing the Competition Authority’s decision,” MAF said in a statement issued Wednesday.
“We take pride in working collaboratively with all our suppliers to create a more sustainable and equitable business environment through ongoing engagement and transparent communication.”
In addition, the Retail Association of Kenya (Retrak) also took issue with the authority’s Ksh 1.1 billion fine against the retailer, noting that “It is crucial to address certain aspects of the decision that have raised concerns within the retail sector.”
Retrak stated that the decision could strain relationships between suppliers and retailers.
“The engagements between suppliers and retailers are intricate, diverse, and unique. In most cases, they are governed by mutually negotiated and signed contracts between the supplier and the retailer. We must ensure that the sanctity of contracts is upheld,” stated Retrak.
“Any regulatory decisions should take into account the careful balance achieved through these contracts, fostering an environment where businesses can thrive and continue to contribute to the growth of the Kenyan economy,” Retrak emphasised.