This year the Competition Authority of Kenya (CAK) received 314 consumer rights cases, a 129 percent jump from a similar period last year with the authority attributing the rise to consumers learning about its watchdog role.
CAK Director-General Wang’ombe Kariuki discusses a new strategy that has seen the anti-trust body rattling more corporates — from banks to insurance companies.
You are really expanding into new places. We saw you going after banks with hidden mortgage fees. What are some of the infractions you noticed?
We focused on the documents provided to consumers when getting facilities. The law is very clear that in terms of the rates which should be explicit without dripping charges, where after you append that signature others come on board. Even if there are charges you have to be given adequate notice.
The other issue is if you want to move to another bank and move with your facility. We could see some of the providers were taking a lot of time so that they can tie you there.
We told them those provisions that were not clear they have to redo them so that consumers really know what they are buying. Don’t make it fine [print], make it bold.
Why allow them to just change terms and not punish them?
We prefer solving the problem rather than a case-centric approach. I am usually more comfortable when I go home and have solved a problem in terms of providing mortgages in this country within two weeks rather than going to a court and then we are back and forth for three years pretending how I am working.
Some of the things we realised in terms of avoiding adjudicatory rigmaroles, back and forth, is let’s just focus on areas we can solve a problem and move on.
Even when you do fine corporates the fines have been a slap on the wrist. Why is this the case?
Our statutes talk about the relevant turnover. Take a beverage company with three-four brands, and it is only one soda which is found to have a particle.Is the relevant turnover all the sodas of that company or the brand of the one that has been found, or only one soda which was found with that particle?The criteria we have been using is that of the of brand, not the entire company turnover.We also consider whether there has been harm on the consumer, whether the […]
