EAC competition body dormant as hiring of official delayed

Trucks at the Malaba border between Kenya and Uganda. The EAC Competition Authority is expected to enforce laws that protect and promote free and fair competition among businesses with a cross-border presence. FILE PHOTO |  NATION MEDIA GROUP

By CHRISTABEL LIGAMI

In Summary

• The position will be re-advertised after first round failed to attract suitable candidates.
• The EAC Competition Authority was expected to be fully operational in January this year.
• The registrar’s role will be to oversee all activities of the body, including the enforcement of laws that protect and promote free and fair competition among businesses with a cross-border presence.

The East African Community has been unable to fill the position of a registrar of the regional competition authority, six months after a budget was approved to operationalise the office.

The EAC Competition Authority was expected to be fully operational in July this year following the approval of a $701,530 six-month budget from January 2016. But the Secretariat has been unable to get the right candidate from the partner states to fill in the position after qualified candidates failed to apply.

“The EAC Secretariat is unable to get a qualified person recruited as registrar,” said Peter Kiguta, Director General for Trade and Customs matters at the EAC.

“The position has to be re-advertised,” he added. 

The registrar’s role will be to oversee all activities of the body, including the enforcement of laws that protect and promote free and fair competition among businesses with a cross-border presence.

The EAC Competition Authority is expected to control or eliminate restrictive measures on companies seeking to invest in other partner states and control mergers and acquisitions as well as the abuse of dominant positions of market power.

Already, five commissioners from each partner state have been appointed and sworn in. They are Innocent Habarugira (Burundi), Francis Kariuki (Kenya), Frederick Ringo (Tanzania), Didas Kayihura (Rwanda) and Sam Watasa (Uganda).

Other positions already filled are director of Mergers and Acquisitions, Director of Monopolies and Cartels, Director of Consumer Protection and Director of Corporate Affairs.

The registrar’s office is expected to have five members made up of the chief registrar, two deputies and advisors.

According to Wang’ombe Kariuki, director-general of the Competition Authority of Kenya, a commissioner to the EAC Competition Authority, the regional authority will be an independent institution operating under the EAC dealing with cross border trade issues.

Tanzania and Kenya have fully functioning independent competition authorities. Tanzania, Rwanda, Burundi and Kenya have competition laws in place while Uganda has a draft law.

“Currently, many cross-border anti-competitive practices are going unchecked due to the absence of an overall regional body to deal with cross-border competition, leaving weaker market players and consumers exposed to unfair business conduct by dominant firms,” said Mr Kiguta adding that although the EAC competition regulations were adopted in 2010, some government policies and practices encourage anti-competitive outcomes.

Already, an EAC Competition Act, 2006 is in place and seeks to allow consumers to take class action against goods or services providers. It also seeks to seal loopholes that enable trade associations and firms operating across the region to engage in exclusive agreements, or form cartels, forcing consumers to pay higher prices for goods and services.  

The Authority is an independent organ of EAC but subject to judicial review by the East Africa Court of Justice. It is mandated to develop appropriate procedures for public sensitisation, consultation and participation.

Competition advocacy will entail providing information to citizens and businesses on competition whereas consultation will involve asking stakeholders for comments and advice regarding the Authority’s enforcement practice and on matters it intends to regulate.In relation to participation, the Authority is expected to provide partner states with comments and advice relating to the compatibility of their regulatory.