CAK Investigates Naivas, Carrefour, Quickmart and Magunas Over Alleged Misleading Pricing
The Competition Authority of Kenya (CAK) has launched investigations into several leading supermarket chains, including Naivas, Carrefour, Quickmart and Magunas Supermarket, over allegations of misleading pricing practices that have left many shoppers paying more at the checkout than the prices displayed on shelves.
The probe follows a growing number of complaints from consumers who claim they were charged higher amounts at the till despite products carrying lower shelf prices or being advertised as discounted.
According to the regulator’s latest annual report, the investigations are centred on claims that some supermarkets failed to honour displayed prices and in some instances, allegedly inflated the original prices of products before announcing discounts, creating the impression of bigger savings than customers were actually receiving.
The authority is looking into several consumer protection concerns, including:
• Products being sold at checkout for more than the prices displayed on shelves.
• Promotional offers that differ from the amount charged at the till.
• Allegations that some retailers increased original prices before introducing “discounts” to make the offers appear more attractive.
• Poor or misleading product labelling.
Such practices, if proven, could amount to false or misleading representations under Kenya’s Competition Act.
One of the cases investigated involved Carrefour, where a customer was charged more than the advertised promotional price for a five-kilogram pack of rice. Following the complaint, the retailer refunded the customer, and CAK issued Carrefour with a warning.
The authority has not yet announced penalties against the supermarkets currently under investigation, but says the inquiries remain ongoing.
Some supermarket executives have attributed the pricing discrepancies to human error, saying price updates are often done manually and mistakes can occur.
According to the retailers, such errors do not always disadvantage customers, as some mismatches occasionally result in shoppers being charged less than the intended price. However, CAK says the increasing number of complaints from consumers has made it necessary to conduct formal investigations.
As part of the investigations, the Competition Authority has also carried out covert inspections and test purchases in various supermarkets.
The secret shopping exercises are intended to establish whether advertised discounts represent genuine price reductions and whether retailer-branded products comply with mandatory labelling requirements.
These undercover purchases help investigators collect independent evidence without alerting retailers beforehand.
The investigations are being conducted under Sections 55 to 70 of the Competition Act, which prohibit businesses from making false or misleading representations to consumers.
Where violations are established, offenders can face penalties of up to Ksh. 10 million for each violation, depending on the nature and severity of the offence.
CAK is urging shoppers to remain vigilant whenever they shop.
Consumers are advised to:
• Compare shelf prices with the amount charged at the till before leaving the checkout.
• Carefully examine promotional offers to ensure they match the final price paid.
• Always retain receipts as proof of purchase.
• Immediately report any pricing discrepancies to supermarket management and where necessary, lodge complaints with the Competition Authority of Kenya.
With the rising cost of living, even small pricing differences can significantly affect household budgets. The regulator says consumers have a right to accurate pricing and truthful promotions, and businesses must ensure the prices they advertise are the same prices customers pay at the checkout.