Carrefour faces Kenyan fines over unfair supplier deals

Kenya’s competition watchdog has fined Carrefour and ordered the French retail giant to review all its supply agreements within 60 days after the supermarket chain was found to be exploiting traders who supply it with goods.

The Competition Authority of Kenya (CAK) also ordered Carrefour through its franchise holder, Majid al Futtaim’s (MAF) to expunge six items from its supplier contracts that are said to give the store the power to offer ultra-competitive pricing to boost sales and increase market share.

The clauses include forcing suppliers to pay a non-refundable fee to do business with it and forcing merchants offering the retail chain goods to provide extra rebates or discounts.

Carrefour was found to be in breach of the law for forcing suppliers to post their own staff at its outlets at the expense of the suppliers. It was also accused of rejecting goods already delivered.

The retail giant has also been barred from delisting suppliers unilaterally without notice for failure to meet its stringent supply contract.

According to the CAK Director-General, Wang’ombe Kariuki, all current supply agreements of Majid Al Futtaim Limited relating to its Carrefour Hypermarkets in Kenya be amended forthwith and in any event within 60 days of service of this order to expunge all offending provisions.

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