NAIROBI, Kenya — The Competition Authority of Kenya (CAK) has issued a stern warning to oil marketing companies over alleged fuel hoarding and anti-competitive conduct, cautioning that offenders risk heavy fines and possible jail terms.
In a public statement dated April 10, the Authority said it is closely monitoring concerns over the availability of petroleum products, including petrol, diesel, kerosene, and Jet A-1, amid reports that some suppliers may be restricting supply in anticipation of price increases.
Fuel is classified as an essential commodity critical to economic activity and public welfare, and any attempt to manipulate its availability or pricing undermines both market stability and consumer protection, the regulator said.
“Any deliberate attempt by suppliers, distributors, or retailers to withhold supply from the market to create artificial scarcity or gain unfair commercial advantage is a prohibited practice,” the Authority stated.
The CAK cited multiple provisions of the Competition Act, warning that agreements or coordinated actions that distort or lessen competition are illegal.
It also flagged practices such as imposing discriminatory conditions on trading partners and restricting access to fuel by non-franchised retailers as potential violations.
Under the law, companies found culpable risk financial penalties of up to 10pc of their preceding year’s gross turnover in Kenya.
Individuals involved may also face criminal sanctions, including fines of up to Sh10 million or imprisonment for a term not exceeding five years.
The warning follows public discourse and statements by government officials suggesting that some oil marketing companies could be hoarding fuel stocks or selectively supplying outlets to benefit from anticipated price adjustments.
While reaffirming its mandate to investigate anti-competitive conduct across sectors, the Authority acknowledged the role of the Energy and Petroleum Regulatory Authority (EPRA) in overseeing the petroleum industry.
It said the two agencies will continue to collaborate under an existing cooperation framework to assess the situation and take appropriate action.
The developments come amid broader concerns over the cost of living, with fuel prices playing a central role in determining transport costs, food prices, and overall inflation.
The Authority urged industry players to comply with competition laws and maintain fair market practices, warning that it will not hesitate to take enforcement measures where violations are confirmed.
