Law on Market Dominance shallowly covered, says Matiang’i

The law on dominance has been shallowly covered, this is according to the Cabinet Secretary Ministry, Dr. Fred Matiang’I.

“The law on market dominance has been shallowly covered. There is no reason why people shouldn’t grow, just grow and dominate your area. With the Dominance law, we are not against growth and innovation,” he said.

He said this during the opening of Oracle’s new Regional Hub office at Delta Corner, Westlands yesterday. He also congratulated Oracle for its growth in the Kenyan market over the past decade since they joined the market. “Government has enjoyed the relationship with Oracle. Oracle has been on the forefront to help in the implementation of the ICT Masterplan as well as support us in the digital literacy programme. Through companies like Oracle and growing in the Kenyan market, it is a clear indication of our great relationship with the US government, being an American Company.”

This comes a few days after Health Secretary James Macharia had differed with him over regulations meant to declare Safaricom dominant.

Mr. Macharia had made the remarks at the launch of mobile phone-based health service in Nairobi, Sema Doc, which is as a result of a partnership between Safaricom, Commercial Bank of Africa (CBA) and Hello Doctor.

“Recently we heard some people pushing for Safaricom to be declared dominant and punished. This is akin to asking a parent who has three kids, one who is hard working and others who are just there, to try and slow the one who is hard working so that the others can catchup with him. This is not fair,” said Mr Macharia. “It is through innovation that Commercial Bank of Africa, Safaricom and Hello Doctor have managed to be market leaders in their areas,” he added.

The market dominance regulations is part of a set of regulations that were tabled in Parliament last month. The market dominance law has been taken up with different reactions from various sector players as well as the general public.

The regulations have provisions that empowers the Communications Authority of Kenya (CA) to automatically declare a telecoms operator with more than 50 per cent market share dominant, which would subject some of the key players to a restrictive marketing and pricing business environment.

The Attorney General Professor Githu Muigai and the Competition Authority of Kenya (CAK) have also differed with the approach taken by Dr Matiang’i and Communications Authority of Kenya on the new rules. However, CA has since defended its position saying the regulations were subjected to public debate, in which officials from the AG’s office participated. Francis Wangusi, the director general CA are aimed for the entire players in the telecommunication sector.