The Competition Authority of Kenya (CAK) has issued a stern warning to oil marketing companies against hoarding fuel or restricting supply to create artificial shortages.
In a statement, the Authority said such practices are a violation of the Competition Act and will attract severe penalties for both companies and individuals involved.
Tough Penalties for Violators
CAK warned that companies found engaging in anti-competitive practices such as fuel hoarding risk fines of up to 10 percent of their annual turnover.
Individuals implicated in the scheme could also face personal consequences, including fines of up to KSh10 million or imprisonment for a term of up to five years.
The regulator emphasized that it is closely monitoring the petroleum sector to ensure compliance and protect consumers from exploitation.
Protecting Consumers and Market Stability
According to CAK, artificial shortages distort the market, trigger panic buying, and unfairly drive up fuel prices, ultimately harming consumers and businesses alike.
The Authority noted that maintaining a stable and competitive fuel market is critical to Kenya’s economic stability, given the central role petroleum products play in transport, manufacturing, and energy.
Warning Amid Supply Concerns
The caution comes amid concerns over potential supply disruptions, with authorities keen to prevent a repeat of past scenarios where fuel shortages led to long queues at petrol stations across the country.
CAK has urged oil marketers to adhere strictly to fair competition practices and ensure consistent supply to meet national demand.
The Authority reiterated its commitment to enforcing the law and taking decisive action against any firm found manipulating the market for profit.
