Authors: Nkonzo Hlatshwayo – Director & Phuti Mashalane – Senior Associate
Earlier this year, the Competition Authority of Kenya (CAK) operationalised a reward scheme in order to increase its efficiency in detecting and acting against anti-competitive practices.
With effect from 1 January 2021, an informant with credible intelligence regarding restrictive trade practices, mainly cartel-like conduct, will receive financial incentives in exchange for that information if it is actionable in the course of the CAK’s investigations.
The targeted conduct includes, but is not limited to, agreements between undertakings to fix purchasing and selling prices, maintenance of minimum resale prices, controlling production levels and allocation of markets, and collusive tendering.
An informant who provides credible intelligence that leads to a successful prosecution will receive up to 1% of the administrative penalty imposed by the CAK. However, the payment shall not exceed Ksh.1 million.
More detail on the Informant Reward Scheme is available here: External Guidelines on the Informant Reward Scheme Policy (2).pdf (cak.go.ke)
For more information, please contact Nkonzo Hlatshwayo on Nkonzo.hlatshwayo@lawtonsafrica.com and/or Phuti Mashalane on phuti.mashalane@lawtonsafrica.com
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