The Kenyan government has unravelled a market cartel at Nakumatt supermarket where the retailer is hoarding sugar in its outlets to fix prices in guise there is a shortage.

Nakumatt supermarket is now being investigated by the Sugar Directorate for knowingly conning Kenyan’s in the name of making super profits.The government has maintained there is no sugar shortage to guarantee the commodity price increase.
The regulator has maintained that there is no sugar shortage to guarantee the commodity price increase.

It has come to our attention that Nakumatt supermarket through its retail outlets is engaging in unfair trade practices by way of hoarding and rationing distribution of sugar,” Business Daily reports quoting a letter from the industry watchdog.

“The supermarket is exposing consumers to unjustifiable cost of acquiring sugar, limiting the distribution of the commodity and negating the spirit of effective competition in the market,” added the letter.

The revelation became public after customers complained of hiked prices of the commodity at the supermarket.

Business Daily reports that a Kilogramme of sugar at Nakumatt is currently retailing at KSh 145 up from KSh 125 two months ago with its management deceiving the consumers there is a shortage of the product from the producers. Tusky’s and Naivas are selling the same commodity at KSh 135 per kilo.

The Competition Authority of Kenya has also promised to investigate the matter. This is not the first time Nakumatt supermarket has been accused of discrepancies in the pricing of its products. The Consumer Federation of Kenya (Cofek) sued the retailer in June 2015 after customers complained that the prices of the commodity on its shelves do not correspond at the counter when someone is making the payment.


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