The Competition Authority of Kenya (CAK) has begun a comprehensive review of the country’s seed industry to identify and eliminate unfair market practices that could harm farmers and disrupt fair competition.
According to CAK Director General David Kemei, the three-month study aims to ensure farmers and industry players are protected from anti-competitive behaviors such as price-fixing and market dominance by a few multinationals.
“We have started the process and issued a gazette notice to study the sector. It will take us two to three months, after which we will review the findings,” Kemei said during the Agriculture Summit held on Thursday.
Kenya’s commercial seed sector was valued at Ksh 50 billion in 2021, with an average annual growth rate of 10 percent, according to Kilimo Nexus. The sector is largely controlled by multinational corporations, raising concerns about restrictive trade practices.
Kemei emphasized that CAK’s investigation is evidence-based, ensuring interventions are guided by data. He noted that similar screening in the fertilizer sector led to significant corrective actions by industry players.
“If we find that firms are acting in a cartel manner, we investigate and require them to adopt fair competitive practices,” he added.
CAK is also seeking amendments to its mandate to regulate the growing e-commerce sector, including platforms selling agricultural products, to ensure fair competition across the digital marketplace.
