CFTC probes cement price surge amid government intervention

The Competition and Fair Trading Commission (CFTC) has launched investigations into the recent cement price hikes that have sparked public concern and prompted government intervention.

According to the Commission’s public relations officer Innocent Helema, preliminary steps taken include inspections to establish prevailing market prices and availability of cement, while also checking if traders are engaging in unfair practices such as exploitative pricing.

Helema says so far, the CFTC has issued 34 notices of infringement to traders, demanding explanations with supporting evidence for their pricing decisions

Some cement manufacturers have also been asked to justify the recent price increases and reported shortages.

Helema further states that the Commission is still gathering feedback from both traders and manufacturers, which will guide the enforcement measures to be taken.

On whether government intervention in the cement market undermines fair competition, he clarified that the move does not breach the Competition and Fair Trading Act.

“Competition law is designed to protect the competition process and not competitors. Import competition is a key element in ensuring robust competition that benefits consumers,” he stated.

Meanwhile, CFTC is conducting a market study of the cement industry to identify short-, medium-, and long-term interventions aimed at ensuring a competitive sector that supports both consumers and the economy.