Buckle up, folks! It's time for a steel showdown that's making headlines.
The Competition Authority of Kenya (CAK) has swung its regulatory hammer, delivering a solid blow to nine steel manufacturers with a jaw-dropping fine of Sh338.8 million.
Corrugated Steel Ltd (Sh86.9 million), Tononoka Rolling Mills Ltd (Sh62.7 million), Devki Steel Mills Ltd (Sh46.3 million), Doshi and Hardware Ltd (Sh41.6 million), Jumbo Steel Mills (Sh33.1 million), Accurate Steel Mills Ltd (Sh26.8 million), Nail and Steel Products Ltd (Sh22.8 million), Brollo Kenya (Sh9.4 million), and Blue Nile Wire Products Ltd (Sh9.16 million) found themselves in the spotlight for artificially jacking up the prices of steel products.
By manipulating the supply and demand dynamics in the market, creating artificial scarcity and driving up the prices of steel products. Such actions harm fair competition and can lead to increased costs for consumers and businesses relying on steel materials.
This 'steel showdown' started back in August 2020 when CAK began digging into the world of steel prices and production. And now, the fines slapped on these 'market maestros' reflect the off-key notes they struck, particularly for those navigating the labyrinth of construction costs.
Adano Wario, the CAK's Acting Director-General, put it simply, “Cartels are conceived, executed and enforced by businesses to serve their commercial interests and to the economic harm of consumers,”
Stay tuned for more updates on this symphony of news at AMCorp.
