CAK Investigates Supermarkets Over False Pricing Labels

Rising Concerns Over Price Discrepancies in Kenyan Supermarkets

Several top supermarkets in Kenya, including Naivas, Carrefour, and Quickmart, have come under scrutiny by the Competition Authority of Kenya (CAK) due to allegations of price discrepancies. Consumers have increasingly reported inconsistencies between the prices displayed on shelves and those charged at checkout counters. This has led to a growing number of complaints and prompted the CAK to launch investigations into these practices.

Investigating Misleading Pricing Tactics

The CAK’s investigation focused on whether supermarkets were engaging in misleading pricing strategies. One such tactic involves raising product prices before offering discounts, making it appear as though the items are being sold at a significant discount. This practice can mislead consumers and distort their perception of value.

In one notable case, a customer named Lena Gathiri filed a complaint against Carrefour after purchasing a package of Dawaat rice that was advertised as a promotional item but was charged at a higher price at the checkout. The CAK addressed this issue by issuing a refund to the customer and warning the supermarket about its practices.

The CAK's actions are grounded in Sections 55 to 70 of the Competition Act, which empower the authority to investigate complaints related to false or misleading representations, unconscionable conduct, and the supply of unsafe or defective goods.

Consumer Complaints and Industry Challenges

Similar issues have been reported across other supermarkets, indicating a broader problem within the sector. Retailers often use promotions to attract customers, aiming to boost turnover and profitability. However, these promotions sometimes lead to confusion when there is a mismatch between shelf prices and actual charges.

An executive from a major supermarket chain acknowledged that such pricing discrepancies are not unique to Kenya and are often unintentional. According to the executive, human error plays a significant role, as staff manually update price stickers. This can result in some customers being charged less than the displayed price, which can be beneficial for them.

However, the executive also noted that the lack of an automated system for updating shelf prices contributes to the issue. “This phenomenon is caused by human error and happens all over the world,” he said. “Most retailers have a remedy where they offer customers the price on the shelf.”

Specific Cases and Ongoing Investigations

Other cases have also drawn the attention of the CAK. For instance, a shopper named Samuel Kinyanjui filed a complaint regarding an alcoholic beverage purchased at a Naivas branch for a higher price than what was advertised on social media. While the CAK has investigated this matter, it has not yet released its findings or confirmed whether the probe is still ongoing.

Quickmart and Magunas Supermarket have also faced similar investigations following consumer complaints. A customer named JME Simekha alleged being charged more than the indicated offer price for refilling cooking gas at Quickmart. Similarly, Mohamud M and Kevin Wagwa raised concerns about purchases made at Magunas where the prices exceeded the sticker prices.

Labelling and Product Standards

In addition to pricing issues, the CAK conducted investigations into the labelling of retailer-branded products sold at various supermarkets. These included checks on whether the discounted prices were higher than previous sales and if the products were properly labelled with essential information such as expiry dates, ingredients, nutritional attributes, and place of origin.

The regulator carried out covert purchases of retailer-branded products from stores like Naivas, Mathai’s Supermarket, Kisii Mart, and Cleanshelf Supermarkets. Despite these efforts, the CAK did not impose sanctions on any retail outlets and concluded its investigations without taking further action.

However, the CAK found that the labelling of sugar under Shivling Supermarket lacked critical information, including the date of manufacture, expiry, and batch numbers. This violation of standards set by the Kenya Bureau of Standards (Kebs) led to an extension of the investigation beyond June 2025.

Broader Implications and Sector Challenges

The CAK’s probe into supermarkets mirrors a 2021 investigation into bread manufacturers who were found to be providing false and misleading information about their products. The investigation revealed that many bread makers failed to include the date and month of manufacture on their packaging, while others printed this information in a way that was not legible to consumers.

These practices contravened Section 55(a)(i) of the Competition Act and violated product information standards set by Kebs. As a result, the CAK ordered the manufacturers to provide clear and legible information on their packaging, including ingredient lists, net weight, and expiry dates.

An earlier survey of Kenya’s retail sector highlighted several challenges, including abuse of power, market allocation, and consumer protection concerns. The report noted violations that contravene consumer protection rights, such as dual pricing, stocking of expired or unsafe goods, and failure to honor warranties.

The existence of these practices is considered against the provisions that guarantee consumers certain rights. As the CAK continues its investigations, it remains crucial for retailers to ensure transparency and fairness in their operations to maintain consumer trust.

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