Kenyan Billionaire Narendra Raval's Steel Firm Devki, 8 Others Fined KSh 338m For Inflating Prices

• Besides Devki, other steel companies that were fined by the Competition Authority of Kenya (CAK) were Doshi, Corrugated Steel Limited and Tononoka Rolling Mills Ltd
• The public watchdog noted that the steel companies' move to inflate prices led to a sharp increase in the cost of steel, hurting consumers
• CAK acting director-general Adano Wario said the heavy fine was imposed to restore order in the steel sector

The Competition Authority of Kenya (CAK) has fined Kenyan billionaire Narendra Raval's steel firm Devki and eight others KSh 338 million for allegedly inflating prices.

Why Competition Authority fined 9 steel companies

The public watchdog noted that the steel companies' move to inflate prices led to a sharp increase in the cost of steel, hurting consumers.

Corrugated Steel Limited was fined the highest amount at KSh 86.9 million, followed by Tononoka Rolling Mills Ltd (KSh 62.7 million) and Devki (KSh 46.3 million).

"The companies engaged in cartel conduct whose effect was to increase the cost of production of homes and infrastructure artificially inflating the cost of steel products," CAK said in a statement.

At the same time, Doshi was fined KSh 41.6 million. Other companies that were penalised were Brollo Kenya Limited, Blue Nile Ware Products Limited, Jumbo Steel Mills, and Accurate Steel Mills Ltd.

What CAK boss said

CAK acting director-general Adano Wario said the heavy fine was imposed to restore order in the steel sector and prevent companies from using anti-competitive practices.

"The penalties are proportionate to the offence, specifically harm to consumers who have been decrying the high cost of steel products in the country," Wario said.

He noted cartels had benefited themselves at the expense of Kenyans, thus raising construction costs as steel products, such as bars, pipes, beams, and sheets, account for over 20% of the total cost of constructing a house.

Why steel prices soared

Steel prices increased globally following a market shortage of steel supply.

Leading global market suppliers like China (52%) reported a slump in crude steel production, resulting in high prices.

The prices increased by 29.5%, up from $1458.37 (KSh 211,000) per tonne of steel reported in October 2022.