Manufacturing, distribution and financial services accounted for more than half of all merger filings received by the Competition Authority of Kenya (CAK) in the 2024/25 financial year, reflecting sustained corporate restructuring and investment activity across the economy.
According to the Authority’s latest annual report, CAK received 128 merger-related applications, including 30 merger notifications, 45 COMESA merger filings, 19 exclusion requests, six non-merger notifications and 28 advisory opinion requests.
Manufacturing recorded the highest number of merger notifications, accounting for 23.5 percent of all filings, followed by distribution at 17.6 percent and finance and insurance at 11.8 percent. Combined, the three sectors represented 52.9 percent of all merger activity during the year.
CAK said its review process is intended to ensure mergers do not substantially lessen competition or create dominant firms capable of distorting markets.
“The overarching goal is to ensure that mergers do not enable firms to dominate markets unfairly, which could lead to the suppression of innovation, harm to consumers through higher prices, reduced choices, or the suppression of competitors.”
“Often, firms with market power may use it to engage in anti-competitive practices such as predatory pricing or exclusive agreements, which can harm the overall competitiveness of the market.”
Under the Competition Act, horizontal, vertical and conglomerate mergers require the Authority’s approval before implementation, although some transactions may be exempt if they fall below prescribed thresholds.
During the year, 30 transactions underwent detailed competition assessments after meeting the turnover and asset thresholds, while 19 applications were excluded from review because they fell below the minimum combined turnover or asset threshold of Sh1 billion.
The Authority also noted that 34 notifications did not qualify as mergers under the Competition Act as they related to internal corporate restructurings, non-full-function joint ventures or requests for advisory opinions.
Cross-border transactions accounted for 48 percent of all merger notifications, highlighting Kenya’s growing importance as a regional investment destination, while domestic transactions made up the remaining 52 percent.
Besides manufacturing, distribution and financial services, merger activity was recorded in mining, healthcare, education, pharmaceuticals, hospitality, floriculture, publishing, packaging, printing, accounting and audit, e-commerce, and information and communication technology.
