IT’S SABOTAGE?

… Cartel fixing ‘exorbitant’ prices of cement

THE exorbitant prices of cement being witnessed countrywide are mainly as a result of illegal price fixing by a cartel bent on sabotaging the construction sector, the Daily Nation has learnt.

The cartel has incorporated some suppliers of raw materials such as gypsum who are quoting in dollars and demanding payment in dollars.

And the Competition and Consumer Protection Commission (CCPC) has confirmed that its investigation into the sudden cement price increase was centred on ascertaining possibilities of the cartel being behind rising cement prices.

CCPC executive director,

Chilufya Sampa said in an interview that the cement industry was marred by cartels and that they had been looking into that.

Mr Sampa however said the CCPC was investigating possibilities of the cartel being behind the exorbitant prices of cement being witnessed on the market.

He said in as much as there were other economic fundamentals that could trigger an increase in cement prices, tactics of the cartel cannot be overlooked.

“There are cartels in the pricing of cement, we have been looking at that,” Mr Sampa said.

Investigations have however revealed that a cartel which includes some foreign owners of cement firms were behind the sabotage. Cement prices have surged to about K140 per bag from K70 in mid last year.

Cement distributors talked to said that they only increased prices after being notified by producers that they were increasing prices at their factories.

Meanwhile, the Ministry of Commerce, Trade and Industry is today expected to address the issue of price increments in the country.