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The Departmental Committee on Trade, Industry, and Cooperatives has asked the Competition Authority of Kenya (CAK) to probe claims that multinational firms are discriminating against local investors in the transport and logistics sector.
This call was made onΒ Wednesday, September 4, 2024 when the Committee met with the Authorityβs Acting Director General, Dr. Adan Roba. OnΒ March 6, 2024 the Committee met with officials from the Kenya Transporters Association (KTA) Limited. The Association sought the MPs' intervention to resolve an ongoing dispute between local transporters and international firms.
At the meeting, KTA Ltd., Chairman, Mr. Newton Wang'oo claimed that multinational companies prefer to work with fellow international firms in the transport sector, which they believe constitutes unfair business practices.
According to the Vice Chairperson, Hon. Marianne Kitany the probe into the unfair practices should include other sectors of the economy.
"The comprehensive probe should not only be confined to the transport and logistics industry alone, but to other sectors of the economy as well," she said.
In an earlier session presided over by Chairperson, Hon. James Gakuya (Embakasi North), senior officials from two multinational companies operating in Kenya refuted claims of unfair trade practices with their suppliers.
"Is it true that you engage in exclusive contracts with your fellow multinationals in the transport and logistics sector?" asked Hon. Gakuya.
In addition, he underscored the importance of local firms to also benefit from contracts from the companies.
Unilever Kenya Ltd., Managing Director, Mr. Luck Ochiengβ, and NestlΓ© Kenya Ltd, Chief Finance Officer, Mr. Gibson Singen, separately stated that their companies actively work harmoniously with local transporters.
"Localization is at the core of Unilever's supply chain worldwide. Over the last few years, we have been intentional about developing local SME logistics partners in addition to other sourcing categories," explained Mr. Ochiengβ.
Mr. Singen on the other hand said Nestle prioritizes compliance with the law.
"NestlΓ© is a company that prioritizes compliance with the laws and regulations in the markets where we operate," he said.
