Royal Mabati fined Sh2.6 million for misleading customers

Royal Mabati Factory. [File, Standard]

The Competition Tribunal has penalised Royal Mabati Sh2.7 million for misleading its customers and violating the Competition Act of 2010.

Royal Mabati is accused of among other things, failing to deliver products to its customers as per their agreed terms, requiring customers to pay delivery fees despite notices indicating that the service would be free, changing customers’ orders after payment, and treating their clients in an unfair and unjust manner.

The Competition Authority of Kenya, in a statement yesterday said the roofing company is now required to fully settle the Sh2,652,363 penalty, refund its customers and refrain from running false advertisements.

“The Authority is of the opinion that this ruling will deter suppliers of goods and services from engaging in conduct that misrepresents the terms of a transaction to consumers and encourage implementation of robust and fair complaints redress mechanisms,” CAK noted.

Royal Mabati had for a period of two years between March 2018-March 2020 attracted several complaints forcing the Authority to take action.

One such is Lewis Mose who was refunded money after his orders failed to materialize but after a long wait.

Gilbert Owino, Isaac Malanga, and Leonard Rono were forced to change the profile of the iron sheets from the original order, while Daniel Mwangi was made to pay for delivery of the products.

The tribunal found that Royal Mbati had misrepresented to the customers that their goods would be delivered within 24 hours, which was not the case.

“The Appellant's conduct was unconscionable. We are of the view that Appellant uses free and specified time delivery claims to lure consumers to make orders, only for customers to be disappointed thereafter,” the tribunal ruled.

The company is also required to refund customers with outstanding complaints within sixty days from the determination date or deliver the roofing materials to their preferred premises at no cost within thirty (30) days.