The Competition Authority of Kenya has opposed a proposal seeking to allocate 60 per cent of logistics and transport services to Kenyan-owned firms, describing the plan as unconstitutional and a violation of competition law.

While appearing before the National Assembly’s Committee on Trade, Industry and Cooperatives, CAK Director-General David Kemei dismissed the proposal by the Kenya Transporters Association (KTA), stating that the request contradicts Section 21 of the Competition Act, which bars anti-competitive practices such as market allocation and exclusion.

Kemei told the committee that the logistics sector does not have a dominant player to justify such a move, and warned that creating a protected market space for local firms would amount to an illegal market concentration.

“The request to ring-fence 60 per cent of transport services for Kenyan-owned businesses runs counter to the objectives of the Competition Act and amounts to an illegal market concentration,” said Kemei.

“So, we present to this committee that it will not be the way to go by granting the local firms 60 per cent as requested,” he added.

KTA had earlier petitioned Parliament, raising concern over what it described as growing exclusion of local transporters by multinational companies operating in Kenya. The association accused large firms of entering into exclusive deals that lock out local players, leading to claims of market dominance and unfair pricing practices.

Among the companies mentioned by KTA as favouring international logistics partners over local service providers were East African Breweries Limited, Bamburi, and British American Tobacco.

Kemei cautioned that approving quotas for local companies could have serious legal implications and disrupt market operations.

He cited a 2010 court ruling that struck out Section 16 of the Merchant Shipping Act, which had attempted to legislate against vertical integration in the shipping industry. The court had found that the section breached constitutional guarantees on fair competition and property rights.

Meanwhile, the committee has instructed the Authority to move quickly on its probe into the allegations raised by KTA regarding discrimination by multinational firms.

“We want this investigation concluded as soon as possible. This matter has dragged on for too long without a resolution,” said Committee Chairperson Benard Shinali (Ikolomani).

Kemei assured the lawmakers that the Authority would prioritise the probe and submit its findings ahead of schedule. Initially slated for October 31, 2025, the report is now expected to be ready by September 30.

“In view of the public interest and the committee’s request, the Authority will endeavor to conclude the investigation by September 30, 2025,” said Kemei.

The committee began its inquiry in 2024 following an appearance by KTA officials, led by Chairperson Newton Wang’oo, who told lawmakers that local firms were being sidelined in favour of foreign logistics companies, causing widespread financial distress in the sector.