NAIROBI, Kenya — Kenya’s competition law framework, long regarded as one of Africa’s most advanced, faces urgent calls for reform, according to a new review by the Organisation for Economic Co-operation and Development.
The report highlights gaps in enforcement, resourcing, and institutional capacity that undermine the effectiveness of the Competition Authority of Kenya.
While the country has established modern legislation to regulate monopolies, mergers, and cartel conduct, the OECD found that CAK operates with limited staff, funding, and technical expertise.
The authority currently lacks a dedicated economics unit, which hinders its ability to investigate complex market dynamics and enforce competition rules effectively.
“We could do more to resource CAK… if you need a chief economist, why not?” said Chris Kiptoo, signalling government support for strengthening the agency.
Over the past five years, enforcement activity has been low. Most cases are settled out of court with minimal penalties and without admissions of wrongdoing, raising concerns that corporate actors are insufficiently deterred from anti-competitive behaviour.
Fines remain far below international benchmarks, while key tools such as whistleblower and leniency programmes have seen little uptake.
The OECD also raised governance concerns, pointing to unclear rules regarding the appointment and dismissal of top leadership, a gap that could expose the regulator to political influence.
“The competition regime in Kenya is a modern regime, it has a strong competition law foundation, and the competition authority in Kenya has comprehensive powers. But there are elements that can be improved,” said António Gomes.
The report notes that Kenya’s merger control mechanisms are well structured but have yet to block any transactions.
At the same time, participation in regional blocs such as the Common Market for Eastern and Southern Africa and the East African Community has introduced overlapping regulatory layers, increasing compliance costs and legal uncertainty for businesses.
Despite these challenges, local experts recognise the strengths of the system. “We have a robust legal framework, a mature merger control regime, intact cooperation between regulators internally and regionally, and CAK plays a significant role internationally on competition and consumer matters,” said David Kemei.
The OECD recommends comprehensive reforms, including boosting funding and staffing, increasing fines to meaningful levels, strengthening institutional independence, and improving transparency.
The aim is to enhance enforcement, protect consumers, and ensure a competitive market environment that aligns with Kenya’s legal ambitions and international best practices.
