The Competition Authority of Kenya has operationalized section 89A of the Competition Act by gazetting the Leniency Program Guidelines (LPG) on 19th May, 2017. From the The Competition Authority of Kenya Newsletter, Issue No. 2, July 2017
The guidelines set out the privileges that govern the granting of partial or full immunity to undertakings that have been engaging in cartel conduct and who provide direct and relevant evidence and proactively cooperate in the successful enforcement action.
In the new guidelines, an undertaking that voluntarily discloses the existence of an agreement or practice that is prohibited and cooperates with the Authority in the investigation of the agreement or practice, may not be subjected to all or part of a financial penalties that could otherwise be imposed under the law.
Section 36 of the Competition Act has been amended to provide the Authority with statutory powers to impose financial penalty of up to ten (10) percent of the preceding year’s turnover of undertakings found to have engaged in cartel activities.
The salient eligibility criteria for the LPG are: `
A successful leniency applicant that is ‘first through the door’ shall be granted 100% reduction of the penalties, the applicant who is ‘second through the door’ may be granted up to 50% reduction of penalties and the ‘third through the door’ gets 30% penalty reduction.
We look forward to seeing how the guidelines are implemented by the Authority as more awareness is created on matters concerning competition and consumer protection.