Blow For Makini School As Competition Tribunal Upholds Ksh7.2M Penalty Over Controversial Sale
Makini School’s appeal against the Ksh7.2 million sanction imposed by the Competition Authority of Kenya for merging with another school without its approval was denied by the Competition Tribunal.
In 2019, Makini School acquired Bhayani School in Kisumu County without the Competition Authority’s knowledge. As a result, the Competition Authority fined the school Ksh7.24 million.
The Competition Tribunal’s chairman, Daniel Ogola, upheld CAK’s decision to impose the sanction, ruling that the school should have consulted CAK before merging.
According to Ogola, Makini School violated Section 42 (2) of the Competition Act, which states that no person may implement a proposed merger unless it has been approved by the Authority or excluded from notification.
“Having determined that their merger and the approval of the Respondent (CAK) was not sought, we find that the Appellant (Makini School) violated section 42 (2) of the Act,” the Tribunal ruled.
ALSO READ: Kisumu Boys High School catches fire
“Having determined that the Appellant (Makini School) violated the Act, we find that the penalty imposed by the Respondent (CAK) was justified as per the provision of the Act.”
Makini had challenged the penalty, arguing that CAK’s sanction was not supported by evidence.
While upholding CAK’s decision, Ogolla rejected Makini’s contention that pupils cannot be considered school assets.
According to the Tribunal, pupils are the primary source of recurring revenue for any commercially operated school.
Ogolla observed that when Makini School assumed control of Bhayani School’s operations, the entire enterprise was operational.
Makini argued in its defense that it did not negotiate a lease with Bhayani School, as alleged by CA, but rather with the landlord, who is separate from the school.
Moreover, Makini asserted that Bhayani had relocated before their takeover and renovation of the institution.
Blow For Makini School As Competition Tribunal Upholds Ksh7.2M Penalty Over Controversial Sale
