Blow for Makini School as Competition Tribunal upholds Ksh7.2M penalty over controversial sale

CAK had fined Makini School Ltd the said amount of money after its former owner, Mary Okello, transferred 71% stake in the high-end group of eight schools to UK-based Scholé Limited and South African firm Advtech.

Okello earned approximately Ksh930 million from the sale. 

According to CAK, Makini School Ltd went against the legal requirement in the Competition Act that no person, either individually or jointly, may implement a proposed merger in the national economy unless it is approved by the Authority or has been excluded from notification.

"The Authority welcomes the judgement by the Competition Tribunal upholding the Ksh. 7.2 Million penalty on Makini School Limited for implementing a merger without approval," CAK said.

In its ruling, the Competition Tribunal found that indeed the said merger had taken place and Makini School Ltd had not followed due process in the change of hands. 

"Having determined that there was merger, and the approval of the respondent (CAK) was not sought, we find that the appellant was in violation of Section 42(2) of the Act. We find that the penalty imposed by the respondent was justified as per the provisions of Section 42(6) of the Act," the tribunal said.

Makini School Ltd was sold in 2018, and has been under the management of the two foreign firms. 

Advtech also operates the Crawford Schools in Kenya while Schole operates Crested Crane Academy and Pestalozzi Education Centre in Zambia, and Kisubi High School in Uganda.