1. Kenya’s Experiences With Competition Law & Policy
Institute of Economic Affairs

2. Agenda Background on Kenya Operational laws and policies Experiences
Illustrative cases
Challenges for Reform
Conclusion

3. Background Classified as developing nation
GDP = US$ 11.4 B, PC Income US$ 360
GDP per head in PPP ( US is 100)= 2.8
56% of Kenyans living BPL
Private consumption 74.2% of GDP
Public consumption 17.4% of GDP
Development Strategies emphasized import substitution and price control

4. Competition Law and Policy
Liberalization commenced late 1980s
RTPMPC Act came to force in 1989
Established the MPC- (advisory role )
Price control component is now redundant
Cap 504 major instrument for enforcing policy
Lack of elaborate competition policy
Scope of law: RTP, merger control, monopolies

5. Experiences Wide exemptions place a large part of economy outside law
Poor design of appeals tribunal
Promotion of competition not a central pillar of regulatory policy
Commitment to privatization (?)
Inability to counter cartel behavior
Insufficient autonomy for MPC
Little competition in public procurement

6. Illustrative Cases PWC Merger- Disregard of findings by MPC
Reversal of decision
2. Coca- Cola Sabco-
Concentration of economic power
3. EABL and Castle Brewing
Take over and market division
Nationalistic sentiments
4. Goldenberg-
Monopoly compensation

7. Reform Challenges
Taking account of new political and economic dispensation
Slow pace of law reform
Cross-border competition effects
Protectionist hang ups
Poor consumer advocacy
Securing the autonomy of MPC
Using CP & law as poverty and welfare enhancing tool (agricultural reform)

8. Conclusion CPL must be dynamic
Cartel control requires multi-lateral approach
CP most effective if informed by rational economics and not politics
Winning against vested interests

9. THANK YOU.