You stand to earn up to Ksh 1million as a whistle blower from CAK.

Competition Authority of Kenya has operationalized an informant Reward Scheme to reward whistle blowers in exchange for actionable information during investigation.

The reward has been introduced by CAK in its quest to protect, strengthen and supplement the way competition works in Kenya markets and industries to improve the efficiency of the economy and to increase the welfare of Kenyans.

The reward scheme comes five years after the regulator designed a Special Compliance Process (SCP) to encourage trade associations to conduct a critical self-assessment of their rules and practices in order to identify any potential anti-competitive conduct in 2015.

The competition body set a penalty of $107,526 (slightly above Sh10 million) or imprisonment of up to five years for entities or individuals found engaging in restrictive trade practices.

Besides pushing up the cost of products for consumers, unfair trade practices also deny the government revenue.

The authority said the informant’s identity will be treated in confidence.

In a public notice made this  week, the competition watchdog said the Informant Reward Scheme targets persons with credible intelligence regarding restrictive trade practices, mainly cartel-like conduct.

 

“Through this scheme, we seek to deepen intelligence-gathering capacity with regard to such clandestine operations using informants who are close to the conduct, but not a party to it,” CAK boss Wang’ombe Kariuki said.

He added that “cartels, who harm consumers through impeding choice, innovation and increasing prices, flourish under a veil of secrecy“.

Some of the unethical trade dealings cited by the authority include agreements between undertakings to fix purchase and selling prices, maintenance of minimum resale prices, controlling production levels and market allocation, and collusive tendering.

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The scope of the program  also extends to misrepresentation and safety of products, abuse of dominance, abuse of buyer power, mergers and acquisitions implemented without approval, and unconscionable conduct.

Besides pushing up the cost of products for consumers, unfair trade practices also deny the government revenue.

Those found to contravene fair trade practices face a penalty of up to Ksh 10 million or a jail term not exceeding five years.

The Authority’s mandate is to enforce the 2010 Act with the objective of enhancing the welfare of the people of Kenya by promoting and protecting effective competition in markets and preventing misleading market conduct throughout Kenya.


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