Petroleum companies in Kenya risk fines of up to Sh10 million following a fresh directive by the Competition Authority of Kenya (CAK) targeting fuel hoarding and price manipulation.
The warning comes amid rising concerns over reported fuel shortages in several parts of the country, despite government assurances that petroleum stocks remain adequate.
In a statement issued on Friday, April 10, CAK raised alarm over suspected malpractice within the fuel supply chain, accusing some dealers of deliberately restricting supply to create artificial shortages.
According to the Authority, preliminary findings indicate that certain oil marketing companies have been withholding fuel from independent retailers in anticipation of a possible price increase.
“Fuel is an essential commodity that underpins economic activity and public welfare. Any deliberate attempt by suppliers, distributors, or retailers to withhold supply from the market to create artificial scarcity, manipulate prices, or gain unfair commercial advantage is a prohibited practice,” CAK said.
The regulator cautioned oil marketers against engaging in anti-competitive practices such as hoarding or discriminatory supply, warning that such actions could attract penalties of up to 10 per cent of a company’s annual turnover.
In addition, firms found selling fuel above the prescribed prices or engaging in other illegal practices risk fines of not less than Sh10 million, imprisonment of up to five years, or both.
“Such conduct may attract a financial penalty of up to 10 per cent of an undertaking’s preceding year’s gross annual turnover in Kenya,” the Authority noted.
“The undertakings found to have breached the Act are liable, upon conviction, to imprisonment for a term not exceeding five years or to a fine not exceeding Sh10 million,” it added.
The directive follows widespread complaints from motorists who have reported difficulty accessing fuel, with long queues witnessed at petrol stations while some outlets have reportedly run dry.
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