Kenyan Tribunal Upholds $2.2 Million Cartel Penalties on Seven Steel Firms

gray iron steel rods

Nairobi, October 15, 2025 – Kenya’s Competition Tribunal has upheld the Competition Authority of Kenya’s (CAK) decision sanctioning seven steel manufacturers for engaging in price fixing and import restrictions, confirming penalties totalling KES 287.9 million (approximately $2.2 million).

The Tribunal’s ruling, delivered on September 11, 2025, dismissed appeals filed by Jumbo Steel Mills Ltd. and Corrugated Sheets Ltd., following earlier rejections in July of similar appeals from Tononoka Rolling Mills Ltd., Blue Nile Wire Products Ltd., Devki Steel Mills Ltd., Accurate Steel Mills Ltd., and Nail and Steel Products Ltd.

Tribunal Decision and Background

The Tribunal found that the Authority had accorded all firms due process under the Competition Act, Fair Administrative Action Act, and Article 47 of Kenya’s Constitution. The companies were accused of coordinating price adjustments and limiting imports of certain steel products, practices that inflated construction costs for homes and infrastructure projects.

CAK’s Director-General David Kemei welcomed the ruling, saying it reaffirmed the Authority’s commitment to protecting consumers and businesses “from the damaging effects of cartel conduct.” He added that the Authority’s evidence-gathering and decision-making processes had been found “veracious and complete.”

Sanctions and Settlements

The individual fine details are as follows:

  • Corrugated Sheets Ltd. – KES 86.9m
  • Tononoka Rolling Mills Ltd. – KES 62.7m
  • Devki Steel Mills Ltd. – KES 46.3m
  • Jumbo Steel Mills Ltd. – KES 33.1m
  • Accurate Steel Mills Ltd. – KES 26.8m
  • Nail and Steel Products Ltd. – KES 22.8m
  • Blue Nile Wire Products Ltd. – KES 9.1mKenya PR

The Authority had originally found 14 companies liable in August 2023 after an extensive investigation involving search and seizure operations. Five firms settled earlier under CAK’s alternative dispute resolution framework, while the remaining nine faced full sanctions. Two of those—Doshi & Co. (Hardware) Ltd. and Brollo Kenya Ltd.—later reached out-of-court settlements during the appeal process.

CAK said the steel sector enforcement follows similar interventions in paint and cement markets, where prior actions led to price reductions of up to 30% for consumers.

“Price fixing and output restrictions inflate prices, stifle innovation, and hinder economic progress,” Kemei stated. “The Authority will continue enforcing the law firmly and fairly to ensure that our markets work for all Kenyans.”

Source: https://www.linkedin.com/posts/competition-authority-of-kenya_steel-cartel-matter-activity-7384105411454320640-xT0A?utm_source=share&utm_medium=member_desktop&rcm=ACoAABgIGhgBpWFmwP2Exu6jbm8jIzZ7oSFBUhI

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