Pursuant to a publication issued on 21 January 2021 (the Publication), the Competition Authority of Kenya (the CAK) has operationalised an informants’ rewards scheme (the Scheme). The Publication states that the Scheme became effective on 1 January 2021.
The Scheme aims to enhance the detection of cartels in Kenya as it creates a financial incentive for individuals to report cartel-like activities. As such, the CAK will give a financial reward to individuals who provide actionable information to the CAK. According to the Publication, an informant providing credible intelligence leading to closure of an investigation through penalization, is entitled to up to 1% of the administrative penalty imposed by the CAK. However, the payment shall not exceed Kenya Shillings one million (KES.1,000,000).
Cartel-related activities include controlling production levels, price fixing, collusive tendering, maintenance of minimum resale prices and market division. The scope of the Scheme also extends to misrepresentation and safety of products, abuse of dominance, abuse of buyer power, mergers and acquisitions implemented without approval, and unconscionable conduct.
The CAK aims to deepen its intelligence-gathering capacity with regard to underhand operations using informants who are close to the cartel-like activity but not a party to it. Pursuant to the Publication, the CAK is committed to ensuring that the identities of informants, such as employees of organisations involved cartel-like conduct, are not compromised.