NAIROBI, 24 April 2021 – The French supermarket chain Carrefour has been found guilty of unfair competition and abuse of buyer power in Kenya.
The Competition Tribunal in Kenya ordered Carrefour to revise its agreements with suppliers in the next 30 days.
Last February, the Competition Authority of Kenya found Carrefour in breach of fair competition practices.
According to the findings, Carrefour forces its suppliers to issue rebates and pay listing fees to have their goods on its shelves between 2015 and 2018.
Carrefour was equally accused of transferring commercial risk to suppliers and unilateral delisting of suppliers.
The rulings say Carrefour’s current supplier agreements give the retailer an unfair edge over its competitors through huge discounts to customers, but to the detriment of suppliers.
The French retailer operates 12 stores across Kenya where it opened its first franchise in 2016.
Kenyan financial authorities say Carrefour’s sales in the country rose 28 percent between 2018 and 2019 to $172 million.
Carrefour was thriving through 2018 and 2019 even as locally-owned supermarkets like Uchumi and Nakumatt were losing business or even collapsing.