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Home Capital Markets

CAK Raids 6 Foam Mattress Firms Over Price Fixing Allegations

Ruth Nelima by Ruth Nelima
in Capital Markets
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CAK Raids 6 Foam Mattress Firms Over Price Fixing Allegations

A photo of CAK's Director General, David Kemei.

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The Competition Authority of Kenya (CAK) has intensified its oversight of the foam mattress sector by conducting simultaneous unannounced search operations, commonly known as dawn raids, at the business premises of six major manufacturers and distributors.

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The operations, which took place on March 31, 2026, spanned four counties including Nairobi, Machakos, Kiambu, and Kisumu, and were executed as part of an ongoing investigation into suspected anti-competitive practices within the industry. During the inspections, the Authority’s officers retrieved critical electronic and physical evidence for forensic analysis.

CAK’s actions are grounded in Sections 31 and 32 of the Competition Act, which empower it to enter premises believed to hold relevant information and to inspect goods, documents, and records necessary to assess the existence of restrictive trade practices. Such practices include abuse of dominance, collusive tendering, price fixing, and market or customer allocation. Dawn raids are a crucial investigative tool, as they allow for the collection of credible evidence that might otherwise be concealed or tampered with if advance notice were given.

CAK has emphasized that the exercise does not constitute a confirmation of guilt but is a key step in an ongoing investigative process. Throughout the raids, the rights of the businesses were upheld, including access to legal representation, and due care was taken to minimize disruption to their operations. The intervention in the foam mattress sector was prompted by actionable intelligence gathered from market surveillance conducted by the Authority’s case officers, which pointed to suspected concerted practices of a cartel nature among competitors.

 “Our intervention seeks to establish whether collusive practices are undermining the affordability and accessibility of these products for ordinary households,” CAK Director-General Mr. David Kemei

While the Competition Act does not prescribe a statutory deadline for finalizing investigations into anti-competitive conduct, the Authority remains cognizant of its constitutional obligation to accord parties fair administrative action that is efficient, lawful, reasonable, and procedural. Mr. Kemei acknowledged that each matter is unique, with timelines influenced by factors such as the number of parties involved, their level of cooperation, and the volume and complexity of records under review.

Mr. Kemei indicated that, based on experience handling complex cases, this investigation is expected to take several months to complete. The Competition Act remains silent on statutory deadlines for concluding investigations into competitive conduct. The CAK will determine the next course of action in accordance with its guidelines and procedures following a review of the evidence.

Also Read: Government Raises KES 50B from Reopening of Long-dated Bonds

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