Nine Steel manufacturing companies have been ordered to pay Sh338,849,427.89 for inflating the prices of various products within their portfolios.
The directive was given by the Competition Authority of Kenya after investigations revealed that they had engaged in 'cartel conduct' aimed at increasing the cost of construction.
The companies are alleged to have engaged in price fixing, through agreeing and collectively setting prices and price adjustment timelines.
"The companies engaged in cartel conduct whose effect was to increase the cost of construction of homes and infrastructure by artificially inflating the prices of steel products.
"Contextually, steel products such as bars, pipes, beams, and sheets, account for over 20% of the total cost of constructing a house," the Authority said.
Investigations into the steel sector commenced in August 2020 when the Authority, on its own motion, conducted a countrywide covert field screening.
Of the nine companies, eight were also penalized for agreeing to limit imports of certain steel components to create an artificial shortage that raised prices.
CAK's acting Director-General Adano Wario said the penalty imposed on the said companies is meant to restore competition in the sector and deter companies from deploying anti-competitive practices.
"The penalties are proportionate to the offence, specifically harm to consumers who have been decrying the high cost of steel products in the country," Wario said.
This penalty is the highest ever imposed by the Authority.
CAK, according to the DG, is engaging five other steel firms in settlement negotiations.
The settlement outcome will be published in the Kenya Gazette once finalised.
