Tame mo­nop­o­li­sa­tion for fair busi­ness prac­tices

Daily Nation (Kenya) - - LETTERS | TO THE EDITOR -

As a cit­i­zen and an en­tre­pre­neur who has been hurt by the de­bil­i­tat­ing im­pact of mo­nop­o­lies or dom­i­nant mar­ket lead­ers’ prac­tices in Kenya, I’m in full agree­ment with the views in an ar­ti­cle writ­ten by Kwame Owino, the CEO of the In­sti­tute of Eco­nomic Af­fairs-kenya.

Mr Owino wrote about “guard­ing against mo­nop­o­lis­tic and can­ni­bal­is­tic mar­ket leader ten­den­cies”. It is high time all con­cerned stake­hold­ers ap­pre­ci­ated and un­der­stood the high price that comes about with the non-reg­u­la­tion of dom­i­nant ten­den­cies across var­i­ous in­dus­tries.

In­deed, the av­er­age eye may not even de­ci­pher how big brands in their re­spec­tive in­dus­tries cre­ate mar­ket re­stric­tions that un­der­mine com­pet­i­tive dy­nam­ics, re­sult­ing in the com­pe­ti­tion not mak­ing a profit.

Iron­i­cally, the cur­rent sit­u­a­tion has been chap­er­oned ma­jorly by govern­ment ac­tions, by de­sign or de­fault, cre­at­ing bar­ri­ers to healthy com­pe­ti­tion and re­in­forc­ing dom­i­nance - this through un­favourable poli­cies, reg­u­la­tions or the lack of pro­ce­dures, pro­grammes and com­mer­cial de­ci­sions.

It is only right for the govern­ment and the main play­ers to fix this once and for all - for the coun­try’s good and the con­sumers in par­tic­u­lar.

Look­ing to the fu­ture, the Com­pe­ti­tion Author­ity of Kenya and the re­spec­tive in­dus­try reg­u­la­tors need to use their pow­ers to ef­fec­tively deal with the sit­u­a­tion.

CHARLES KEITANY, Nairobi

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