Consolidating regional growth
regional competition legislation and encourage the enactment of national competition laws, as well as establish independent competition agencies.
The EAC Competition Act, 2006, has already been ratified by member states, and national competition legislation enacted in all member countries except Burundi and Uganda. Prior to this competition legislation, price-fixing, poor quality products/services, and market sharing were rampant in the EAC region, owing to increased cross-border trade. The most affected sectors across the region are telecommunications, transport, insurance, beverages, banking and energy.
To prevent further distortion of competition in the common market, member countries are making efforts to establish a regional competition authority that will have mandate over the regional market in comparison to national competition agencies. Once established, the EAC competition authority will check cross-border anti-competition practices, and harmonise national competition regimes of the member states under the EAC competition regime. Although the EAC Competition Regulations were adopted in 2010, there has been slow progress in the establishment of the EAC Competition Authority. Several challenges have contributed to this.