But isn’t it obvious that these supermarkets have been exploiting suppliers by defaulting on payments?
Wiling buyer willing seller. You do not have to work with them when it is obviously out there is the general public that is what they do. Ata county government hulipa zikijiskia na bado watu hutaka kukulia contracts hapo
I partly agree but remember we have laws that should be followed when it comes to exchange of goods and services and ignorance is no defence in law.
Carrefour wacha itombe middlemen, Bora sio customer
they are forcing suppliers to give them discount ,that’s why they can afford to have those huge discounts to their customers, which i think is a good thing, customers benefit, suppliers nao should also benefit by supplying in bulk, especially for fmcg
hmmn…what about forcing suppliers to pay a non-refundable “fee” in order to start doing business with them? Banange, isn’t that the same as demanding for a bribe?
sio bribe, when you are applying for tenders, si kuna fee? some companies even ask for 10k tender application fee non refundable whether you get it or not ?, there are too many suppliers around , there must be a way of isolating the weaker ones from the stronger, try applying for eabl distributorship you see the conditions.
How can you force someone. What you do is you approach someone and tell them i will buy at this price. if you do not sell it to me at this price, i will not buy. You could tell them, i won’t sell you my goods. Nani anakuforce uwauzie. That’s some bullshit gymnastic thinking.
Everything is pelt out clearly in the contract before you sign. Nobody can force you to sell them goods. Wewe ndio umekubali hizo terms alafu unaleta ujuaji while you igned the contract with our full mental faculties working.
I just quoted what was reported in the papers, but to me it is a willing buyer willing seller
Actually, my friend is a lawyer and he told where the terms of a contract are unfair or one party appears to have grossly unequal bargaining power, such contracts are never enforced in a court of law. So it doesn’t matter whether you signed it knowingly or by mistake.
it could be possible those non-refundable tender application fees are illegal. So Carrefour cannot say “everyone is breaking the law, why am I the only one being charged?” If such things are allowed to then soon utaskia employers demanding a job application fee before you are employed.
My lawyer friend begs to differ.
basi tungoje lawyers in the house wajitokeze watuambie what is the court’s position on unfair contracts.
contracts have unconscionable terms, in the court’s view, are unenforceable. Because each case is decided on its own merits, the question whether the contracts were unconscionable must be determined after hearing both sides.
You have to convince the court that the contract was manifestly unfair on a balance of probabilities. In this case, the contract would also have to be in violation of the Competition Act, in particular Part III of the Act .
The government is right. Carrefour is notorious for abusing buyer power and transferring risk to the supplier.
"A firm or group of firms that exert influence as purchaser of a product or service to obtain more favorable terms from a supplier , will be liable for an offence that attracts a fine of KSh10 million or a jail term of 5 years or both.
This is according to provisions of the Competition (Amendment) Bill, 2019, which has been signed into law by President Uhuru Kenyatta.
The Competition (Amendment) Bill 2019 empowers the Competition Authority of Kenya to review contracts and agreements between suppliers and buyers to determine cases of abuse of buyer power.
This Bill, which was submitted to the National Assembly during the reading of the 2019/2020 budget, is intended to separate the legal provisions on abuse of buyer power from those on abuse of dominant power.
The Act will facilitate investigations with a view of mitigating abuse of bargaining or buyer power which adversely affects the economy and empowers the Competition Authority to investigate and take action against such conduct.
“Buyer power” means the influence exerted by an undertaking or group of undertakings in the position of purchaser of a product or service, so as to obtain more favorable terms, or to impose a long term opportunity cost including harm or withheld benefit, which, if carried out, will be significantly disproportionate to any resulting long term cost to the undertaking or group of undertakings.
The Act empowers the Competition Authority of Kenya to require sectors which have a potential for abuse of buyer power to develop a binding code of practice.
Any professional association whose rules contain a restriction that has the effect of preventing, distorting or lessening competition in a market in Kenya and which fails to apply for an exemption as required by law commits an offence and shall be liable, upon conviction, to imprisonment for a term not exceeding five years or to a fine not KSh 10 million or both
Conduct amounting to abuse of buyer power includes:
[li]Delays in payment of suppliers without justifiable reason in breach of agreed terms of payment;[/li][li]Unilateral termination or threats of termination of a commercial relationship without notice or on an unreasonably short notice period, and without an objectively justifiable reason;[/li][li]Refusal to receive or return any goods or part thereof without justifiable reason in breach of the agreed contractual terms;[/li][li]Transfer of costs or risks to suppliers of goods or services by imposing a requirement for the suppliers to fund the cost of a promotion of the goods or services and[/li][li]Transfer of commercial risks meant to be borne by the buyer to the suppliers.[/li][/ul]
Others are demands for preferential terms unfavorable to the suppliers or demanding limitations on supplies to other buyers, reducing prices by a small but significant amount where there is difficulty in substitutability of alternative buyers or reducing prices below competitive levels; or bidding up prices of inputs by a buyer undertaking with the aim of excluding competitors from the market."
Kila president na supermarket yake. Kibaki Nakumatt.
They say bonobos were cursed by God. It’s not true but looking at the comments by some guys here tempts you to believe this lie.
Here are Kenyans supporting a foreign company which is screwing fellow Kenyans ,getting abnormal profits. And you wonder why is it easy to enslave black people.