The Competition Authority of Kenya (CAK) has investigated leading supermarket chains including Naivas, Carrefour and Quickmart over complaints from shoppers alleging misleading shelf pricing.
The complaints relate to instances where supermarkets allegedly displayed lower prices on shelves and promotional materials than those charged at the checkout.
CAK also investigated claims that some retailers may have inflated prices before advertising discounts, making promotions appear larger than they actually were.
In one case, according to CAK’s latest annual report, Carrefour refunded shopper Lena Gathiri after she complained that she was charged a higher price at the counter for a five-kilogramme Dawaat rice package that had been advertised as a promotional offer. CAK also warned the retailer over the pricing discrepancy.
“The complaint alleged that Carrefour indicated the five-kilogramme Dawaat rice was on offer, yet the price at the till was different,” CAK states in its latest annual report.
Similar complaints were also reported against other supermarket chains, prompting CAK to widen its investigations into pricing practices across the retail sector.
CAK said its enforcement powers are provided under Sections 55 to 70 of the Competition Act, which prohibit misleading representations and other forms of unfair trade practices.
Although CAK found insufficient grounds to sanction most retailers, it said investigations into several complaints remain ongoing. The authority warned that misleading pricing practices undermine consumer rights and may breach the Competition Act.
An executive at one leading supermarket who spoke to Business Daily attributed the pricing discrepancies to human error rather than deliberate misconduct.
The executive said store attendants manually update shelf prices because the process is not automated overnight, adding that pricing discrepancies can sometimes work in customers’ favour when the checkout price is lower than the shelf price.
CAK also investigated Naivas after shopper Samuel Kinyanjui alleged that he was charged Sh1,120 for an alcoholic beverage advertised on social media at Sh899.
Quickmart and Magunas Supermarket were also investigated over complaints relating to cooking gas refills and sticker price violations respectively.
Separately, the authority conducted covert purchases of retailer-branded products from Naivas, Mathai’s Supermarket, Kisii Mart and Cleanshelf.
The inspections sought to determine whether retailers had inflated prices before advertising discounts and whether product labels complied with requirements on expiry dates, ingredients and nutritional information.
The authority later closed the investigations without taking enforcement action.
The investigations come as regulators intensify efforts to strengthen consumer protection and improve transparency in pricing practices across Kenya’s retail sector.
– By Daniel Kamau
