The Competition Authority of Kenya (CAK) has launched a formal investigation into several multinational shipping and logistics firms over alleged market abuse, collusion, and exclusionary practices that disadvantage local companies.
This follows complaints from the Kenya Transporters Association (KTA) and the Kenya International Freight and Warehousing Association (KIFWA), who claim multinationals dominate over 70% of logistics contracts despite local firms owning the majority of trucking assets.
Monopolistic practices
Key players under scrutiny include shipping giants Maersk, CMA CGM, MSC, and PIL, accused of monopolistic practices such as closed contracting, controlling multiple supply chain segments, and offering preferential treatment to affiliates. Non-shipping firms like Bamburi Cement, East African Breweries Limited, and British American Tobacco are also part of the probe due to their role in reinforcing these exclusive systems.
Local associations allege that these companies have used vertically integrated operations to bypass independent service providers, inflate costs, delay documentation, and apply uniform terminal charges that marginalise smaller competitors. Despite earlier proposals to reserve a portion of logistics contracts for local firms, CAK rejected them on legal grounds.
Initial findings from CAK’s market screening and port data show significant market concentration, with Maersk and CMA CGM controlling a combined 60% of the containerised cargo at Mombasa Port in 2023. Though no firm exceeds a 50% share, CAK argues that the influence of top players is sufficient to potentially abuse dominance. The ongoing investigation, prompted by a National Assembly directive, is expected to conclude by September 30, 2025.