Recent imposition of a historic fine of Sh338 million on nine Kenyan steel manufacturers for fiddling with prices by the competition watchdog was pivotal on several fronts.
Firstly, it represents a significant stride forward in safeguarding the interests of the Kenyan consumer, who has been battling the high cost of living and runaway inflation for several years.
This case raises questions regarding what proportion of the prevailing high commodity prices are caused by market dynamics, and what is artificially influenced by illegal commercial alliances.
Secondly, the intervention comes at a time when the government is aggressively implementing its ambitious affordable housing programme.
For the construction of houses to be reasonably priced, inputs need to be competitively sourced. This rationale also applies to steel-reliant infrastructure projects being undertaken across the country.
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