CAK Raids Foam Mattress Firms in Probe Over Alleged Cartel Practices

The Competition Authority of Kenya (CAK) has conducted coordinated raids on several foam mattress manufacturers and distributors as part of an ongoing investigation into suspected anti-competitive conduct.

In a statement issued Tuesday, the authority said it carried out simultaneous entry and search operations at the business premises of six major firms across four counties—Nairobi, Machakos County, Kiambu County, and Kisumu County.

The unannounced inspections, commonly referred to as dawn raids, saw investigators seize key materials for forensic analysis.

“At the unannounced inspections, commonly referred to as dawn raids, the Authority retrieved critical electronic and physical evidence for forensic analysis. These include hard disks and thumb drives, laptops, mobile phones, management reports, and sales records, among others,” the statement said.

The raids were conducted under Sections 31 and 32 of the Competition Act, which empower the authority to access premises and inspect documents where there is suspicion of anti-competitive behavior.

According to CAK, the investigation is focused on possible restrictive trade practices, including abuse of dominance, collusive tendering, price fixing, and market or customer allocation.

“Dawn raids secure credible evidence that is likely to be concealed, destroyed or altered if advance notice is given. These exercises are not a confirmation of guilt or culpability, but are a key step in an ongoing investigation,” the authority noted.

The regulator said the operation was informed by actionable intelligence gathered through market surveillance, which pointed to suspected cartel-like conduct among industry players.

“The Authority’s intervention in the foam mattresses sector is supported by actionable intelligence from market surveillance by our case officers, which pointed to suspected concerted practices of a cartel nature between competitors,” the statement read.

CAK emphasized that due process was followed during the raids, including safeguarding the rights of the affected businesses.

“During the raids, the rights of the businesses, including access to legal representation, were upheld. Additionally, due care was taken to minimize business disruption,” the authority said.

Speaking in the statement, Director-General David Kemei underscored the importance of the probe, noting the widespread use of foam mattresses in Kenyan households.

“Foam mattresses are an essential household commodity, used by millions of Kenyan consumers. Our intervention seeks to establish whether collusive practices are undermining the affordability and accessibility of these products for ordinary households,” he said.

The authority reiterated that the investigation is ongoing and that further action will depend on the findings of the forensic analysis.