Leading steelmakers have filed an appeal against the Competitions Authority of Kenya (CAK), contesting a Ksh338 million fine for alleged price fixing that led to an artificial shortage. CAK’s Acting Director General, Adano Wario, confirmed the receipt of the appeal by the Competition Tribunal, challenging the fines imposed in August.
The penalties, were the result of an investigation following complaints within the steel market. The nine steel manufacturers, including Devki Steel Mills, Corrugated Steel Ltd, Tononoka Rolling Mills, Doshi & Hardware Ltd, Jumbo Steel Mills Ltd, Accurate Steel Mills, Nail and Steel Products, Brollo Kenya Ltd, and Blue Nile Wire Products Ltd, were implicated.
Dr. Wario acknowledged the appeal, stating, “With regard to the steel sector, the nine manufacturers appealed the authority’s decision to the Competition Tribunal. Given that it is now a quasi-judicial matter; we cannot comment further on the specifics.”
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In August, the companies received varying fines, with Corrugated Steel Ltd facing the highest penalty at Ksh86 million. Tononoka Rolling Mills Ltd followed as the second-highest fined company at Ksh62 million, and Devki Steel Mills Ltd, owned by billionaire Narendra Raval, was fined Ksh46 million. These fines were a response to allegations of price fixing that had led to increased construction costs.
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Dr. Wario emphasized the significance of the penalties, stating, “This penalty is the highest ever imposed by the Authority, and it should send a clear message that cartel conduct is unlawful under the Competition Act. In a liberalized market like ours, the forces of supply and demand should signal prices, free from manipulative business practices. Agreements between competitors seek to defeat this fundamental facet of a free economy.”
