BUSINESS

CAK: Manufacturers Free to Resize Products

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CAK Director-General David Kemei
CAK Director-General David Kemei
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The Competition Authority of Kenya (CAK) has assured manufacturers that they are free to reduce the size or reformulate their products to cope with rising production costs, provided they clearly inform consumers about the changes.

The regulator said resizing products is not illegal, but businesses have a responsibility to ensure shoppers are not misled into believing they are getting the same quantity or value as before. The clarification comes as complaints over shrinkflation and declining product quality continue to grow in Kenya.

CAK Director General David Kemei said the authority’s concern is not with manufacturers adjusting product sizes, but with situations where consumers are not adequately informed.

“The concern from a consumer protection standpoint arises where such changes are inadequately disclosed to consumers, such that they are intentionally or unintentionally misled into believing they are receiving the same value as before,” Kemei told the Star.

His remarks follow growing public concern over shrinkflation, where manufacturers reduce the size or quantity of a product without lowering its price, and skimpflation, where companies cut product quality or service standards while maintaining the same price.

According to the Consumers Federation of Kenya (Cofek), complaints have increased in recent years, with consumers reporting smaller quantities in products such as bread, cooking fat, tissue paper, LPG, milk, cooking oil, maize flour, wheat flour, sugar, rice, tea, coffee, juice, soft drinks, toothpaste, detergents and soap.

Kemei explained that reducing package sizes is lawful as long as the new quantity is accurately stated on the packaging. However, selling products that contain less than the amount indicated on the label amounts to a consumer protection violation.

The authority is also investigating several retailers over allegations of misleading pricing and unfair consumer practices while engaging manufacturers and retailers on measures to improve transparency.

Manufacturers argue that shrinking products has become necessary due to soaring electricity bills, fuel costs, taxes, imported raw materials, labour expenses, packaging costs and expensive loans. Many say they are forced to either raise prices or reduce product sizes to remain in business.

National Weights and Measures Directorate Director John Wamwana urged consumers who suspect they have been sold products with inaccurate quantities to report the cases to their county Weights and Measures offices for investigation.

Meanwhile, Cofek Secretary General Stephen Mutoro said businesses have a legal obligation under the Consumer Protection Act, 2012, to clearly disclose any reduction in product quantity, warning that failure to do so could amount to misleading consumers.

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