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Kenya’s competition watchdog has slapped Majid al Futtaim, the local Carrefour franchise holder, with a jaw-dropping $7.1 million fine (£5.6 million) for its dazzling performance in the art of arm-twisting suppliers into accepting bargain-basement prices. The regulator, clearly unimpressed by Carrefour’s theatrics, accused the retail giant of playing puppet master with its suppliers, yanking their strings with a “superior bargaining position” and leaving two unfortunate suppliers in the dust.

This hefty fine, a record-breaker by the competition authority, seems to be a sequel to Carrefour’s blockbuster hit in 2021, where it was found guilty of supplier exploitation by the Competition Tribunal. Majid al Futtaim, the star of the show, is yet to grace the stage with a response.

But the drama doesn’t end there. The Competition Authority of Kenya (CAK) is demanding a refund encore, instructing the Carrefour franchise holder to cough up $112,000 to the two victims of this supplier-side soap opera – Woodlands, the honey processor, and Pwani Oil, the manufacturer.

CAK claims that Majid al Futtaim utilized a discount dance called rebates, pirouetting its way through final payments and leaving suppliers in a financial spin of up to 12%. The regulator is not shy about calling out the supermarket chain’s illegal transfer of costs onto suppliers, labeling it a violation of the Competition Act.

“Investigations also determined that Carrefour’s suppliers are required to provide free products and pay listing fees for every new branch opened as well as post employees to the supermarket’s branches,” CAK declared in a statement that could rival any script for its plot twists.

To add a touch of irony to this corporate comedy, the regulator has instructed the supermarket chain to revise its script, demanding amendments to all supplier contracts to expunge clauses that facilitate the abuse of buyer power. As the curtain falls on this act, Carrefour, with 21 outlets across Kenya’s major cities, remains conspicuously silent, leaving us to wonder if this franchise saga is headed for an encore or a grand finale.

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