Lobby group sues Nakumatt over price discrepancies

Leading supermarket chain, Nakumatt Holding Limited, was yesterday put to task over pricing discrepancies of some of its products at some branches.

Consumer Federation of Kenya made true its threats to sue the company on grounds that it had not adequately addressed consumers’ outcry over the pricing irregularity.

“The first respondent (Nakumatt Holding Limited) supermarkets are misleading consumers in that the items on the shelf, which influence consumers to buy products are different when the consumers get to the till to make payment,” the court heard.

The consumer body through its lawyer, Peter Mugalo, said Nakumatt had breached the trust of its customers by not regularising the prices put on display and what it charges.

Cofek wrote to Nakumatt following the outcry by consumers that there were discrepancies between the shelf and till prices and had given Nakumatt’s management seven days to address the matter.

The issue of giving sweets instead of loose change also cropped up. The consumer lobby claimed that the leading supermarket was issuing sweets instead of returning loose change due after a customer makes purchases. It told the High Court in Nairobi that consumers started to complain over the discrepancies in May and the same was conveyed to Nakumatt owners who allegedly responded “in an unremorseful way”.

Accusation

The Stephen Mutoro-led group accused the supermarket chain of engaging in unfair business practices.

At Nakumatt Lifestyle, a customer claimed that the pricing of a book at the shelf read Sh120 but on the till the man had to part with Sh80 more. Another was said to have complained that a novel was labelled Sh995 but on the till the same was priced at Sh9,995.

The price of chicken at the retail market leader shops according to the lobby cost the consumer Sh10 more to trade at Sh205 instead of Sh195. Further, the price of festive bread had been allegedly hiked by Sh4, trading Sh49 on the till but labelled Sh45 on the shelf.

Cofek further claimed that the Atul Shah-led company never apologised even after the complaints were lodged to the company. Although Nakumatt admitted liability on price discrepancies, the consumer body said it was unsatisfactory.

The body also attached Kenya Bureau of Standards, Competition Authority of Kenya and the Attorney General Githu Muigai as respondents.

It claimed that Kebs and CAK had failed to cushion consumers from abuse by the traders. The lobby now wants the court to order an audit of Nakumatt’s four branches in Nairobi at the cost of the company.