The Competition Authority of Kenya (CAK) has launched an investigation into several multinational companies operating in Kenya’s shipping and logistics sector over allegations of market abuse, collusion, and discriminatory practices that have marginalised local players.
The investigation follows complaints by the Kenya Transporters Association and the Kenya International Freight and Warehousing Association.
The associations claim that multinational companies control over 70% of logistics contracts through exclusive deals and vertically integrated operations, despite local companies owning 90% of trucking assets.
The Kenya Transporters Association tried to remedy this in March last year by petitioning the National Assembly’s Departmental Committee on Trade, with allegations that companies Maersk, CMA CGM, MSC, and PIL dominate the logistics value chain, sidelining local firms.
The association also proposed reserving 60% of logistics contracts for local firms, but was rejected by CAK due to laws prohibiting such market allocation schemes.
However, CAK conducted a market screening in mid-2024 after a directive from Kenya’s National Assembly. It then launched a full investigation into ocean freight shipping, clearing and forwarding, and trucking services.
The probe not only targets the previously mentioned shipping firms but is also looking into non-shipping firms like Bamburi Cement, East African Breweries Limited, and British American Tobacco.
The antitrust regulator is investigating allegations of multinational companies securing closed agreements, blocking local competitors from accessing key markets. Allegations also point to uniform charges for terminal handling, depot fees, and cleaning.
Other accusations include companies controlling multiple supply chain segments, delaying documentation, inflating demurrage fees, preferential treatment of affiliates, and lading arrangements bypassing independent service providers.
The Kenya Ports Authority (KPA) data shows that Maersk and CMA CGM held 35% and 25%, respectively, in 2023. Mombasa Port is dominated by top players who control over 90% of containerised cargo. Even though no company holds over 50%, CAK claims that Maersk and CMA CGM have enough market power and, as such, warrant scrutiny for potential abuse of dominance.
The Kenya International Freight and Warehousing Association alleges that they poach customers by leveraging sensitive information and offering unfair discounts to affiliates. A previous attempt to curb this through legislation was seen as unconstitutional.
CAK’s investigation is currently ongoing and is set to conclude on September 30, 2025.