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CAK ANNUAL REPORT Font 10 TEXT ANNUAL REPORT & FINANCIAL STATEMENTS 2015/2016 THE COMPETITION AUTHORITY OF KENYA ANNUAL REPORT & FINANCIAL STATEMENTS 2015/2016 TABLE OF CONTENTS PART I ANNUAL REPORT ........................................................................................................................................ii CORPORATE INFORMATION....................................................................................................................iii PREAMBLE.......................................................................................................................................................1 BOARD OF DIRECTORS............................................................................................................................... 4 MANAGEMENT TEAM.................................................................................................................................8 CORPORATE GOVERNANCE ...................................................................................................................11 The Authority’s Board ................................................................................................................... 11 Role of the Chairman ..................................................................................................................... 11 Board Evaluation ............................................................................................................................ 11 Key Board Activities ...................................................................................................................... 11 Board Composition. ....................................................................................................................... 12 Board Commiees .......................................................................................................................... 13 Technical and Strategy Commiee .............................................................................................. 13 Human Resources Commiee ...................................................................................................... 13 Audit and Risk Management Commiee ................................................................................... 13 Finance Commiee ........................................................................................................................ 13 Internal Audit and Assurance ...................................................................................................... 14 Corruption Prevention Strategies .................................................................................................14 Risk Management .......................................................................................................................... 14 Strategic Planning .......................................................................................................................... 14 CHAIRMAN’S STATEMENT ......................................................................................................................15 DIRECTOR GENERAL’S STATEMENT .....................................................................................................16 REGULATION OF MARKET STRUCTURE AND CONDUCT...............................................................20 Regulation of Mergers and Acquisitions .................................................................................... 20 CONTROL OF RESTRICTIVE TRADE PRACTICES ...............................................................................26 Protection Of Consumers .............................................................................................................. 29 Policy And Research Initiatives .................................................................................................... 31 Advocacy Initiatives ...................................................................................................................... 32 Awareness Creation Activities and Capacity Building ............................................................. 34 Human Capital ............................................................................................................................... 41 Corporate Image and Visibility .................................................................................................... 43 Corporate Social Responsibility (CSR) .........................................................................................43 ISO 9001:2008 Certification ........................................................................................................... 45 Knowledge Management .............................................................................................................. 46 Information Communication & Technology (ICT) .................................................................... 47 Supply Chain Management .......................................................................................................... 47 PART II FINANCIAL STATEMENTS FOR THE YEAR 2015/2016 ....................................................................... 48 Statement of the Directors’ Responsibility ................................................................................. 49 Statement of Financial Position .................................................................................................... 53 Statement of Changes In Net Assets ............................................................................................ 54 Statement of Cash Flows ............................................................................................................... 55 THE NOTES TO THE FINANCIAL STATEMENTS ............................................................................... 57 ANNEX I: Corporate Risks ......................................................................................................................... 72 ANNEX III: Merger Notifications .............................................................................................................. 73 ANNEX IV: Enforcement and Compliance Cases ....................................................................................88 ANNEX V: Exemption Cases ...................................................................................................................... 90 ANNEX VI: Consumer Protection Cases .................................................................................................. 91 ANNEX VII: Advisory Opinions ................................................................................................................ 99 ANNUAL REPORT & Financial Statements 2015/2016 PART I ANNUAL REPORT 2015/2016 ii ANNUAL REPORT & Financial Statements 2015/2016 CORPORATE INFORMATION Directors Mr. David Ong'olo - Chairman (Re-appointed in 12th February 2016) Mr. Francis W. Kariuki - Director-General Dr. Kamau Thugge - Principal Secretary, The National Treasury Dr. Ibrahim Mohamed - Principal Secretary, Ministry of Industrialization and Enterprise Development Prof. Githu Muigai - The Aorney-General Ms. Judith A. Guserwa - Deputy Chairman (Term Expired on 25th September 2015) Mr. Stephen K. Kiptiness -(Re- appointed on 29th June 2016) Canon Charles G. Komu -(Term Expired on 25th September 2015) Ms. Eunice Maranya -(Re- appointed on 29th June 2016) Ms. Susan A. Ayako -(Term Expired on 25th September 2015) Mr. Protus Sigei, -Alternate to the Principal Secretary, The National Treasury Mr. Michael Onyancha, -Alternate to the Principal Secretary Ministry of Industrialization and Enterprise Development Ms. Elizabeth Ng'ang'a - Alternate to The Aorney-General Mr. Abdirizak Aralle Nunow – Appointed on 29th June 2016 Ms. Carolyn Kimbo Musyoka – Appointed on 29th June 2016 Ms. Leila A. Ali – Appointed on 29th June 2016 Physical Address: Kenya Railways HQs Block 'D', Ground Floor, Workshop Road off Haile Selassie Avenue, P.O Box 36265 – 00200, NAIROBI, Kenya. Tel: +254-20-2628233 or +254-20-2779000 Website: www.cak.go.ke Email: [email protected] Auditors: Auditor General, Kenya National Audit Offices, Anniversary Towers, P. O. Box 30084 – 00100, NAIROBI. iii ANNUAL REPORT & Financial Statements 2015/2016 Legal Advisors: The Hon. Aorney-General, State Law Office, P. O. Box 40112-00100, NAIROBI. Mohammed Muigai Advocates, K-REP Centre, P. O. Box 61323-00200, NAIROBI. Gorei Munialo Mwinali Company Advocates, Uchumi House 14th Floor Aga Khan Walk, P. O. Box 10771-00100, NAIROBI. Chege Kibathi & Company Advocates LLP, Hughes Building 3rd Floor Suite 10 Kenyaa Avenue, P. O. Box 21686-00100, NAIROBI. Ogala Akello & Company Advocates, Office Suite 14, 1st Floor Green House, Ngong Road, Nairobi. Rachier & Omollo Advocates, Mayfair Center, 5th Floor, Ralph Bunche/ Argwings Kodhek Road P. O. Box 55645-00200 Nairobi Bankers: Kenya Commercial Bank Limited, KICC Branch, P. O. Box 30081–00100, NAIROBI iv ANNUAL REPORT & Financial Statements 2015/2016 PREAMBLE The Authority has a statutory obligation under section 83 of the Competition Act No. 12 of 2010 (the Act) to prepare an annual report for transmial to the National Assembly by the Cabinet Secretary, The National Treasury. The Annual Report captures the overall performance by the Authority, based on its key interventions and performance indicators. The Authority is an independent Government Agency created under section 7 of the Act. Its mandate is to enhance the welfare of the people of Kenya by promoting and protecting effective competition in markets and preventing
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