The Competition Authority of Kenya has penalized Moringa School half a million shillings for implementing a merger without approval from the authority.
The authority asserts that Moringa informed CAK of the 2016 merger without regulatory consent contrary to the Competition Act No.12 of 2010.
Moringa’s merger involved the acquisition of an additional 50% on its shareholding by Audrey Patricia Cheng. Frank Temre Collins sold his shareholding of Moringa to Audrey. As a result, the transaction changed the school from a joint shareholding to sole ownership.
This move is contrary to CAK’s section 42(2) which would require all mergers to seek approval, failure to which the offense is punishable by a fine or imprisonment or both.
“No person, either individually or jointly or in concert with any person, may implement a proposed merger to which this part applies unless this merger is approved by the Authority.” Section 42(2) of Competition Act No.12 of 2010.
Both parties admitted to contravening the law. The fine, therefore is a reflection of their cooperation, noting that the parties reported the infringement to CAK. Moringa already paid the penalty.
Moringa teaches coding technology to over 1000 students and employs approximately 100 people. The school offers coding lessons in Java, Spark, and Django among other coding languages. While Moringa’s headquarters are in Nairobi, the institution has a presence in Hong Kong, Pakistan, and Ghana.