In an effort to enhance cartel detection in Kenya, the Competition Authority of Kenya (CAK) has launched an Informants Reward Scheme (Scheme), which financially incentivises individuals to blow the whistle on cartel-type activities.
The CAK identifies cartel-type activities as agreements which amount to price fixing, market division, collusive tendering, maintenance of minimum resale prices and controlling production levels. The Scheme also extends to abuses of dominance, implementation of notifiable mergers without CAK approval and other consumer-type offences.
The objective of the Scheme, according to the CAK, is to deepen 'its intelligence gathering capacities with regard to such clandestine operations using informants who are close to the conduct, but not party to it'.
Under the Scheme, informants who provide credible intelligence leading to the closure of an investigation and the levying of an administrative penalty against offending firms, will become entitled to up to 1% of the value of the administrative penalty, capped at KES 1 million (ZAR 130 000 / USD 9 000 / EUR 7 500).
In addition, the CAK undertakes to protect the identity of the informant and therefore encourages employees and others who come into knowledge of such illegal activities to come forward.
The Scheme, according to the CAK, came into effect on 1 January 2021.
Originally Published by Bowmans, January 2021
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