By ANNIE NJANJAMore by this AuthorBeer maker Kenya Breweries Limited, a subsidiary of UK Diageo’s East African Breweries Ltd (EABL) #ticker:EABL, has entered into a settlement agreement with the competition regulator committing to end some restrictive trading practices. “The Authority established that the Distributorship agreement between Kenya Breweries Limited and its Distributors contained clauses that could likely lead to the lessening of intra-brand competition,” said CAK. KBL was investigated under Section 21 of the Competition Act which describes restrictive trade practices (RTPs) as those that lessen competition to the detriment of consumers. The beer maker has previously been accused of hitting distributors with contractual demands that prevent the merchants from dealing with rival firms’ products. A standoff with EABL came to a head in June 2016 after some distributors declined to sign agreements requiring them to notify the brewer, which controls around 90 percent of Kenya’s beer market, of any plans to deal in competitor products.

Source: Daily Nation February 13, 2019 09:33 UTC