The Competition and Fair Trading Commission (CFTC) of Malawi has fined seven companies a total of K51.5 million for engaging in anti-competitive business practices and unfair trading conducts. This decision was made at the commission's 76th meeting on September 30, 2026, after reviewing 64 cases of breaches of competition and fair trading laws. The commission found the companies guilty of various offenses, including stocking expired products and engaging in unconscionable conduct.
Tutlas Limited and Kachi Supermarket received the highest fines, K25 million and K12.5 million respectively, for stocking expired products in their shops in Salima and Lilongwe. The commission also fined Jegaf Investments and Horizon Health Malawi Limited K10 million and K2 million respectively for engaging in unconscionable conduct. Sanam Supermarket was fined K1 million for stocking expired products, while Jahabi Enterprises was ordered to pay K500,000 for misleading conduct and failure to display prices.
Spectrum Supplies was also fined K500,000 for misleading conduct under the Trade of Goods Act. The commission took into consideration Sanam Supermarket's apologetic nature and cooperation throughout investigations, resulting in a relatively lighter fine compared to similar breaches by Tutlas Limited and Kachi Supermarket. The commission's statement also revealed that two cases have been referred to the Anti-Corruption Bureau for investigations into attempted corrupt practices.
During the meeting, the commission ordered two companies to refund consumers K1 million. Additionally, the commission authorised two local mergers: the acquisition of Open Connect Limited by Malawi Stock Exchange-listed TNM plc and Victoria Forex Bureau's takeover of Libertas General Insurance. CFTC chief executive officer Desmond Kaunda expressed concerns over weak regulations, which do not give the commission the mandate to impound products.
Kaunda stated that the commission can only instruct companies to remove expired products from shelves and quarantine them, but there is no provision to prevent them from putting the products back on sale. He emphasised the need for stronger regulations to empower the commission to take effective action. Consumers Association of Malawi executive director John Kapito described the situation as unfortunate, pointing to weaknesses in the regulation.
Kapito blamed the ineffective positioning of institutions and enabling laws for the current state of affairs. He noted that such situations would not occur in other countries with more effective regulations. The CFTC has previously lamented that 60 percent of determinations made under the updated Competition and Fair Trading Act are being challenged in court, highlighting the need for greater clarity on the regulation's practical application.
The new Competition and Fair Trading Act, which came into effect on July 1, 2024, gives the commission stronger powers to penalise violations, including administrative penalties of up to 10 percent of an enterprise's gross annual turnover. The Act also strengthens oversight of digital trade and online commerce while emphasising consumer protection. The commission's actions demonstrate its commitment to enforcing the new regulations and protecting consumers in Malawi.
Key points
- The CFTC has fined seven companies K51.5 million for anti-competitive practices and unfair trading conducts.
- The commission has referred two cases to the Anti-Corruption Bureau for investigations into attempted corrupt practices.
- The new Competition and Fair Trading Act gives the commission stronger powers to penalise violations, including administrative penalties of up to 10 percent of an enterprise's gross annual turnover.
