Majid Al Futtaim Retail expressed surprise at the recent KES 1.1 billion penalty levied by the Competition Authority of Kenya (CAK) against its Carrefour supermarket chain on Tuesday despite the withdrawal of complaints by two major suppliers.
“Majid Al Futtaim was surprised by the recent decision made by the Competition Authority in Kenya, which comes despite the withdrawal of complaint and renewed partnership agreements that have been signed with Woodlands Company Limited and Pwani Oils Limited,” the company said in a statement.
The Dubai-based retail conglomerate said it has “full confidence in the fairness and integrity of our business practices” and plans to appeal CAK’s ruling.
Carrefour Kenya, exclusively operated by Majid Al Futtaim, maintains a network of over 700 supplier partners, 300 of which have partnered with the company since beginning operations in 2016, the statement said.
“We take pride in working collaboratively with all our suppliers to create a more sustainable and equitable business environment through ongoing engagement and transparent communication,” it read.
As a leading regional retailer, Majid Al Futtaim said it is “committed to upholding the highest standards of global best practice, including antitrust and competition laws to encourage fair competition.”
The company cited its positive impacts in Kenya, including “protecting the purchasing power of Kenyan citizens by offering trusted cost-mindful, locally-sourced, high-quality products” and “creating more than 7,000 direct and indirect jobs and career opportunities for Kenyan talent.”
“We will continue working to the benefit our customers, partners and stakeholders to ensure meaningful contribution to Kenya’s development agenda in creating a globally competitive and prosperous nation through sustainable business operations,” the statement concluded.
CAK ruled that Carrefour had abused its buyer power in dealings with food suppliers. It must pay the fine within 30 days pending appeal.
