Nairobi, Kenya- The Competition Authority of Kenya (CAK) has launched a sweeping investigation into six major foam mattress manufacturers and distributors following coordinated dawn raids across four counties, targeting businesses suspected of engaging in anti-competitive conduct and cartel-like behavior.
The simultaneous raids on Tuesday targeted locations in Nairobi, Machakos, Kiambu, and Kisumu, marking one of the most aggressive enforcement actions by the regulator in recent months.
‘Essential Commodity’ Under Scrutiny
“Foam mattresses are an essential household commodity, used by millions of Kenyan consumers,” said David Kemei, the Authority’s Director-General.
“Our intervention seeks to establish whether collusive practices are undermining the affordability and accessibility of these products for ordinary households.”
The CAK investigation focuses on allegations of collusive conduct among competitors in the foam mattress sector, which could include:
- Price fixing
- Market or customer allocation
- Abuse of dominance
Such practices, if proven, undermine market competition and can inflate prices for consumers already facing economic pressures.
Evidence Seized in Multi-County Operation
The Authority seized critical electronic and physical evidence during the unannounced searches, including:
- Hard disks and thumb drives
- Laptops and mobile phones
- Management reports
- Sales records
These items will undergo forensic analysis to establish whether restrictive trade practices occurred.
CAK emphasized that conducting dawn raids is necessary to secure evidence that could otherwise be concealed or destroyed. The Authority assured that it respected businesses’ rights to legal representation and minimized operational disruption.
Legal Authority and Potential Penalties
“Sections 31 and 32 of the Competition Act empower the Authority to enter premises of persons believed to possess relevant information,” CAK stated. “Dawn raids secure credible evidence that is likely to be concealed, destroyed or altered if advance notice is given.”
If the Authority finds violations of the Competition Act, it may:
- Order companies to cease illegal conduct
- Reverse any anti-competitive effects
- Impose financial penalties of up to 10pc of gross annual turnover
Investigation Timeline
The Authority’s intervention follows intelligence gathered through market surveillance, which indicated possible malpractice among mattress manufacturers and distributors.
CAK stressed that the raids do not imply guilt but are a necessary step in the ongoing inquiry.
“Based on our experience handling complex cases, this investigation is reasonably expected to take several months to complete,” Kemei said.
“However, our proactive measures—including upskilling case officers and installing an in-house modern forensic laboratory- will improve case completion time.”
The Competition Act does not set a fixed deadline for completing investigations due to varying case complexity.
