Transcript UNDERSTANDING KENYA COMPETITION LAW

UNDERSTANDING KENYA
COMPETITION LAW
7/17/2015 3:15:24 PM
Understanding Kenya Competition Law;
Kanyi
1
Legislative History
• First formal legislation-Price Control
Ordinance 1956 renamed the Price
Control Act 1956.
• Served as a model for the current
Competition Law
• Sessional Paper no. 1 of 1986 articulated
the need for a market driven economy.
7/17/2015 3:15:24 PM
Understanding Kenya Competition Law;
Kanyi
2
• This mooted the legislation to curb RTP’s
and abuse of dominance.
• The 1987 draft bill was deliberated on and
passed by Parliament in December 1988.
• The new Act, Restrictive Trade Practices,
Monopolies and price Control Act,
Cap.504 of the Laws of Kenya came into
force in February 1989.
7/17/2015 3:15:24 PM
Understanding Kenya Competition Law;
Kanyi
3
Objectives
• Curb the behavior of private enterprises
that may inhibit the proliferation of
competitive market structures.
• Efficient allocation of resources.
• Protection of the consumers in the
absence of price controls( prices had
been decontrolled extensively)
• The aim is to protect the process of
competition.
7/17/2015 3:15:24 PM
Understanding Kenya Competition Law;
Kanyi
4
Main Parts of Cap.504
• Part I- Preliminary (sections 1-3)
• Part II- Provisions Relating to Restrictive Trade
Practices (sections 4-21)
• Part III- Control of Monopolies and
Concentration of Economic Power (sections
22-32)
• Part IV- Provisions Relating to the Control and
Display of Prices (sections 33-63)
7/17/2015 3:15:24 PM
Understanding Kenya Competition Law;
Kanyi
5
• Part V- Establishment of the Restrictive Trade
Practices Tribunal (sections 64-69)
• Part VI- Miscellaneous Provisions (sections 7075)
Scope of the Law
Includes a broad range of entities that are
definable under the Act.
7/17/2015 3:15:24 PM
Understanding Kenya Competition Law;
Kanyi
6
Means of Enforcement;
Commissioner/MPC,
Minister for Finance,
RTP Tribunal, and
High Court of Kenya
Approach to restraints to trade.
Approach to market dominance.
Approach to mergers & acquisitions.
Checks, balances and sanctions.
Functional autonomy & financial
independence
7/17/2015 3:15:24 PM
Understanding Kenya Competition Law;
Kanyi
7
MPC’s Structure
Minister for Finance
Permanent Secretary
Ministry of Finance
Commissioner MPC
Administration
Division
Deputy Commissioner
(ECONOMICS)
Deputy Commissioner
(LEGAL)
Sectoral Studies
Division
Investigation
Division
7/17/2015 3:15:24 PM
Enforcement
Division
Understanding Kenya Competition Law;
Kanyi
8