Carrefour on the Spotlight over Supplier Unfair Deals

Carrefour has been fined by the Competition Authority of Kenya, over unfair supplier deals that have continually led to unfair competition

Carrefour’s faults were listed by the authority as; forcing suppliers to pay a non-refundable fee to do business with the retailer, forcing merchants offering the retail chain goods to provide extra rebates or discounts, forcing suppliers to post their own staff at its outlets and rejecting goods already delivered

The supermarket was accused by suppliers of using its stringent supply contract to depress their earnings and gain market advantage through competitive pricing this, according to the East African.

The supermarket is currently facing a financial penalty amounting to 10% of its gross sales in the event that it does not review its policies within sixty days. At the moment, Carrefour has been fined KSh124,767 for exploiting Orchards Limited, which supplies yoghurt.

Carrefour currently operates over 250 hypermarkets, supermarkets, and online stores in 15 countries across the region after it opened its first outlet in Kenya in 2016. It has plans underway to extend into 38 countries in the Middle East, Central Asia, Africa and Russia.