The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | XINHUA | Kenya’s competition watchdog said Thursday it is anticipating mergers and acquisitions in the airline and e-commerce sectors due to the ongoing COVID-19 pandemic, an official said on Thursday.
Mugambi Mutegi, manager of communication and external relations, Competition Authority of Kenya, told a webinar in Nairobi that the COVID-19 pandemic has necessitated the business community to develop synergy in order to overcome the economic uncertainty caused by the pandemic.
“The authority anticipates more joint ventures in the coming months especially in the airline and e-commerce sectors,” Mburu said.
The industry regulator said it expects that mergers will also increase where dominant firms acquire upcoming competitors more so in the digital economy.
The watchdog has so far processed about 45 mergers and acquisitions deals in the current financial year that ends on June 30 and said the number is expected to remain the same in the next financial year.
Raphael Mburu, manager of merger and acquisitions, Competition Authority of Kenya, observed that before any merger or acquisition is approved, a competition and public interest test must be conducted to ensure that the new entity will not lessen competition in the market.
Priscilla Njako, Buyer Power Manager at the Competition Authority of Kenya, said that most cases of abuse of superior bargaining position by purchasers occur in the insurance sector.
Njako noted that the most prevalent complaint is on delayed payments or unfavorable business terms by dominant players.
“When we find conduct of one player is causing harm we will intervene in order to promote efficient markets in Kenya,” she added.
