Thousands of small suppliers across Kenya received overdue payments after the competition regulator stepped in to resolve disputes involving powerful buyers, with millions released through enforcement action targeting unfair commercial practices.
The Competition Authority of Kenya facilitated the recovery of Sh76.29 million for suppliers in the year ending June 2025, even as the number of reported buyer power abuse cases reduced compared to the previous year.
The authority handled 59 complaints linked to dominant purchasers using their market position in ways that disadvantaged suppliers, down from 82 cases recorded in the previous reporting period. Of the cases received, 40 were concluded by the end of the review period, leading to the release of funds owed to affected businesses.
In the previous year, suppliers had recovered Sh89.52 million from 82 cases, showing a higher number of disputes but slightly lower recoveries in the latest cycle. CAK noted that its continued oversight has helped improve compliance in several sectors while still exposing persistent gaps in payment practices.
Buyer power abuse refers to situations where large buyers impose unfair conditions on suppliers, including delayed payments or forcing them to absorb costs that would otherwise not arise under normal trade agreements.
The law gives CAK authority to act against such conduct under the Competition Act, with penalties reaching up to 10 percent of a firm’s annual turnover, fines of up to Sh10 million, or imprisonment of up to five years for offenders.
The insurance sector recorded the highest share of complaints at 47.7 percent, reflecting ongoing disputes within claims settlement and supplier arrangements. The authority linked this trend to continued engagement and awareness efforts within the industry.
“This can be attributed in part to increased sensitization efforts to the insurance sector players,” said CAK in the latest report.
Under existing rules, insurers are required to settle claims within 90 days after receiving complete documentation from policyholders.
Retail accounted for 11.43 percent of complaints, while construction and telecommunications each stood at 10 percent. Agriculture followed at 7.74 percent, and intellectual property disputes made up 5.71 percent.
Other sectors, including manufacturing, hospitality, cosmetics, healthcare, translation services, and electronics, each contributed 1.43 percent of the reported cases handled during the period.