The Competition Authority of Kenya (CAK) has launched a high-stakes investigation into six major foam mattress manufacturers and distributors, suspected of forming a cartel to manipulate the prices of essential household bedding.
On Tuesday, March 31, 2026, CAK investigators conducted simultaneous “dawn raids” across business premises in four counties: Nairobi, Machakos, Kisumu, and Kiambu. The operation aimed to secure evidence that could otherwise be destroyed, following market intelligence suggesting systemic anti-competitive behavior in the sector.
Scope of the Investigation
The CAK is looking for evidence of “restrictive trade practices” that artificially drive up costs for Kenyan households. Specifically, the probe is targeting:
- Price Fixing: Agreements between competitors to set specific prices rather than letting the market decide.
- Market Allocation: Dividing the country into “territories” to avoid competing with one another.
- Collusive Tendering: Rigging bids for large supply contracts to government institutions or hotels.
- Abuse of Dominance: Larger firms using their market power to squeeze out smaller competitors.
Evidence Confiscated
During the raids, the Authority’s forensic teams seized a wide array of physical and digital assets, including:
- Digital Hardware: Laptops, hard disks, thumb drives, and mobile phones.
- Corporate Records: Management reports, internal correspondence, and detailed sales records.
Director-General David Kemei emphasized that these measures are proactive, stating, “Foam mattresses are an essential household commodity… Our intervention seeks to establish whether collusive practices are undermining the affordability and accessibility of these products for ordinary households.”
Legal Context and Penalties
The raids were conducted under Sections 31 and 32 of the Competition Act, which grant the Authority the power to enter premises and seize documents during active investigations.
While the CAK noted that the raids do not automatically imply guilt, the legal consequences for those found culpable are severe:
- Financial Penalties: Fines of up to 10 percent of a company’s gross annual turnover.
- Corrective Orders: Mandates to cease unlawful practices and remedy any damage caused to the market.
Timeline for Completion
Due to the complexity of forensic data analysis, the investigation is expected to take several months. However, the CAK highlighted its new in-house modern forensic laboratory and upskilled case officers as key tools that will speed up the review of the retrieved data compared to previous years.
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This move by the CAK comes at a time when Kenyan consumers are already feeling the pinch of global economic shifts, including the $115 surge in oil prices and the ongoing flood crisis, which have significantly impacted the cost of logistics and essential goods.
