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LSK slams Ruto’s “Sword” Threat
The Law Society of Kenya (LSK) Monday, December 18 launched a scathing attack on President William Ruto’s recent remarks about using the ceremonial sword given to him by his predecessor, Uhuru Kenyatta, raising concerns about potential intimidation of the judiciary and a return to dark days of enforced disappearances.
“These people who are frustrating through the courts on the Housing Levy are the real enemies of our country, you gave me the power, this sword is not for chopping vegetables,” Ruto stated.
Among the petitioners who have filed cases in court are Busia Senator Okiyah Omtata and the Law Society of Kenya. On 28 November, the High Court dealt a blow to the 1.5% housing levy, declaring it unconstitutional because it was discriminatory and created an unequal playing field.
LSK President Eric Theuri branded Ruto’s comments at a thanksgiving mass in Kisii County on Saturday as “aggressive and reckless,” accusing them of being a veiled threat to Kenyans’ right to challenge government decisions through the courts.
“The President’s statement that he will use the sword on those he considers enemies who go to court is a direct attack on the independence of the judiciary and the rule of law,” Theuri declared, adding that the courts had already ruled the Housing Levy, a target of Ruto’s ire, unconstitutional.
The LSK boss further expressed deep worry about the potential for undue influence on the judiciary, urging the courts to remain fiercely independent in safeguarding the rights of all Kenyans. He also raised the chilling specter of enforced disappearances, citing past incidents following Ruto’s controversial “mambo ni matatu” slogan, which he claims led to the harassment of lawyers and coerced case withdrawals.
“Those statements were followed by threats to parties who had cases in court to withdraw them, and we are aware that several advocates were harassed and intimidated for representing clients’ cases, leading to their coerced withdrawals,” Theuri said, sending a shiver down the spines of many Kenyans who remember the dark days of the past.
Ruto’s remarks, which have sparked widespread outrage across the political spectrum, have been interpreted by some as a thinly veiled threat to use brute force against his opponents.
“When Ruto castigates people going to court on his punitive policies and says the sword he was given is not for cutting vegetables , is he implying that it is for cutting/killing people ? Sort of reminding us what he was is capable of?” posed Narc Kenya party leader Martha Karua.
Carrefour Kenya Hit with Ksh7.1 Billion Fine for Exploiting Suppliers
The Competition Authority of Kenya (CAK) Tuesday slapped Carrefour Kenya, the local franchise holder of the retail giant, with a record-breaking Ksh7.1 billion fine for abusing its market power and squeezing suppliers. This comes after investigations revealed Carrefour forced suppliers to accept lower prices through unfair terms and conditions.
CAK found that Carrefour leveraged its “superior bargaining position” to impose harsh demands on two specific suppliers, honey processor Woodlands and manufacturer Pwani Oil. These included demanding rebates of up to 12%: thus reducing the final payment received by suppliers. The supermarket also imposed high listing fees and required free products- suppliers had to pay hefty fees to have their products listed on Carrefour shelves and even provide free merchandise. CAK also found Carrefour guilty of unfairly transferring its operational costs, such as staffing new branches, onto suppliers.
These practices, deemed illegal under the Competition Act, led to the hefty fine and an additional Ksh1.12 million ordered to be refunded to the directly affected suppliers.
“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 stated in a Tuesday press release. “These practices amount to transfer of the retailer’s costs to suppliers, which is prohibited by the Competition Act.”
This is not the first time Carrefour Kenya has faced accusations of exploiting suppliers. In 2021, the Competition Tribunal found the company guilty of similar practices after another complaint arose. While Carrefour claims commitment to “mutually beneficial relationships” with suppliers, its actions haven’t aligned with its words.
Carrefour Wednesday expressed surprise and disappointment over the Competition Authority of Kenya’s (CAK) decision to impose the fine for alleged abuse of buyer power. In a press statement, the company highlighted that the surprise fine comes despite the withdrawal of complaints and renewed partnership agreements with the two suppliers involved, Woodlands Company Limited and Pwani Oils Limited.
“We are taken aback by this decision,” the statement reads, “as it contradicts the positive progress made in resolving these past concerns. We have actively engaged with both suppliers and successfully reached mutually beneficial agreements that address the initial issues raised.”
Carrefour emphasized its commitment to fostering a collaborative and transparent business environment through ongoing engagement with all its partners. “We take pride in building strong relationships with our suppliers and believe in creating a sustainable and equitable business ecosystem for everyone,” the statement read.
The company further reiterated its dedication to upholding the highest standards of global best practices, including strict adherence to antitrust and competition laws. “As a leading regional retailer,” the statement affirms, “Majid Al Futtaim remains committed to promoting fair competition across all aspects of its operations.”
Despite the imposed fine, Carrefour assured its customers, partners, and stakeholders that it will continue striving for positive contributions to Kenya’s development agenda. “We are confident in our ability to operate sustainably and contribute meaningfully to the nation’s prosperity,” the statement concludes.
Carrefour is a major player in the retail landscape, With 21 outlets across Kenya.
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