Carrefour’s Kenya franchisee says it will appeal $7.2 million penalty

NAIROBI (Reuters) – Carrefour’s franchisee in Kenya, the United Arab Emirates-based Majid al Futtaim (MAF), said on Wednesday it will appeal against a 1.1 billion shilling ($7.14 million) penalty imposed by the competition authority for alleged abuse of buying power.

The regulator Competition Authority of Kenya on Tuesday announced the fine, a record high in the East African nation, saying MAF Kenya was guilty of offering two local suppliers unfavourable terms.

“Majid Al Futtaim has full confidence in the fairness and integrity of our business practices and is appealing the Competition Authority’s decision,” the company said in a statement.

In arriving at its decision, the authority had ignored the fact that the two local suppliers had already withdrawn their complaint and signed new contracts with the retailer, MAF said in the statement.

It will take its appeal to the Competition Tribunal, a quasi-judicial body that adjudicates over appeals against the Competition Authority. MAF will then be free to appeal the tribunal’s decision at the High Court if it is dissatisfied.

($1 = 154.0000 Kenyan shillings)

(Reporting by Duncan Miriri; editing by George Obulutsa, Andrew Heavens)