OECD Competition Law Review: Policy Signals Change Shift for Businesses

  • 19 Mar 2026
  • 4 Mins Read
  • 〜 by Brian Otieno

The Organisation for Economic Co-operation and Development (OECD) is an international organisation that brings together governments to promote policies that support economic growth, fair markets, and effective regulation. Kenya participates in OECD policy processes and periodically subjects parts of its legal and regulatory framework to OECD peer review. These reviews assess whether national laws and institutions meet internationally recognised standards and identify areas where reform may strengthen market confidence and investor trust.  

The OECD recently released a peer review report examining Kenya’s competition law and policy framework. Such international peer reviews of national regulatory systems often appear technical at first reading. Closer examination shows that they serve a broader function. They provide an independent assessment of how well a country’s laws, institutions, and enforcement practices align with global benchmarks. Governments request these reviews to identify weaknesses, enhance credibility, and guide future reform. Publication, therefore, marks the start of a policy conversation rather than the end of a technical exercise.  

The latest review evaluates the effectiveness of the Competition Act, the institutional capacity of the Competition Authority of Kenya, and the overall structure for supervising market conduct. The report considers merger control, abuse of dominance, consumer protection enforcement, investigative powers, and the interaction between national, regional, and continental competition regimes. Its purpose is to determine whether the current framework promotes fair competition, protects consumers, and supports economic growth in a market environment that is becoming more complex and more integrated across borders.  

Peer reviews of this nature have practical influence, serving as reference points for policymakers, regulators, legislators, and development partners. Recommendations contained in the report often inform future amendments to statutes, revisions to regulatory guidelines, and changes in enforcement priorities. For businesses, these documents are best read not as commentary on past performance, but as indicators of the direction regulation is likely to take in the near term.  

A Sound Framework Facing Pressure to Evolve  

The review acknowledges that Kenya has developed a relatively modern competition law regime. The Competition Act, 2012, provides for control of mergers, prohibition of anti-competitive agreements, action against abuse of dominance, and oversight of consumer protection matters. The Competition Authority holds a broad cross-sector mandate, allowing it to intervene where market conduct threatens fair competition or consumer welfare.  

At the same time, the report observes that enforcement activity has been uneven in certain areas. Greater reliance on settlements, limited investigative resources, and relatively modest penalties in some cases are identified as factors that may weaken deterrence. Strengthening enforcement capacity, improving transparency in decision-making, and ensuring that sanctions reflect the seriousness of violations are presented as priorities for future reform.  

Another key finding relates to the growing complexity of the regulatory environment. Businesses increasingly operate within national law, regional competition frameworks, and emerging continental regimes under the African Continental Free Trade Area. Overlapping jurisdiction can result in duplicate approvals, uncertainty about compliance obligations, and longer transaction timelines, particularly in mergers or cross-border operations. The report recommends closer coordination among authorities and clearer procedures to reduce regulatory friction.  

Institutional issues also receive attention. The review highlights the importance of adequate funding, operational independence, and transparent processes within the competition authority. Strong institutions are viewed as essential for maintaining confidence in enforcement and ensuring that competition policy supports innovation, investment, and market entry. Taken together, the findings point to a fundamentally sound framework, while signalling the likelihood of adjustments to strengthen effectiveness and align practice with international expectations.  

Peer review Findings Often Precede Policy Change 

Experience across many jurisdictions shows that peer review reports rarely remain theoretical. Once recommendations are formally recorded, regulators gain a clear basis for applying existing powers more assertively. Policymakers gain justification for proposing amendments to legislation. Development partners frequently support technical reforms aligned with the report’s conclusions. These dynamics mean that change often begins through enforcement practice before it appears in statute.  

The most immediate implication lies in enforcement culture. Calls for stronger deterrence typically lead to more active investigations, more detailed information requests, and closer scrutiny of market conduct. Transactions that previously attracted limited review may receive greater attention, particularly in sectors with high market concentration. Compliance programmes, therefore, become a core element of risk management rather than a procedural requirement.  

Regulatory processes may also become more formal following such assessments. Recommendations on coordination between national and regional authorities often translate into additional filing obligations, clearer notification thresholds, and stricter procedural timelines. Organisations involved in mergers, acquisitions, joint ventures, or regional expansion should anticipate longer approval processes and greater documentation requirements. Regulatory engagement increasingly becomes part of strategic planning rather than an administrative step at the end of a transaction.  

Institutional strengthening has further consequences. Additional resources and clearer mandates allow regulators to undertake more market studies, publish more decisions, and intervene more frequently in sectors where competition concerns arise. Predictability may improve over time, although the short-term effect is often an increase in compliance expectations. Entities that track these developments early are better positioned to adjust internal policies without disruption.  

Peer review reports also influence legislative agendas. Recommendations relating to investigative powers, penalty levels, consumer protection, or digital markets often reappear in amendment bills or new regulations. Monitoring such reports allows organisations to anticipate reform, participate in consultation processes, and align internal practices before changes become mandatory.  

Conclusion  

The OECD competition review does not in itself change the law. Its importance lies in defining the direction the legal and regulatory framework is expected to take. External assessments of this kind rarely remain dormant. They become part of the evidence used to justify reform, strengthen enforcement, and align domestic regulation with global standards.  

Careful reading of such reports provides early insight into how regulatory expectations are evolving. Stronger oversight, more structured approval processes, and higher compliance standards are common outcomes following international peer review. In an environment where competition regulation continues to expand in scope and complexity, those who recognise these signals early are better prepared to operate with certainty as policy shifts take shape.